Raymond James Releases Monthly Sector Leaders List Based on Multi-Factor Screen

Raymond James published a stock-screening roster for March that highlights companies carrying buy or outperform ratings and meeting a multi-factor threshold. The firm uses a 14-factor framework and selects firms with at least 70% of factors in predefined 'sweet spots', limiting results to companies with market capitalizations above $1 billion and no more than five names per sector.

Key Points

Raymond James applies a 14-factor framework covering value, growth, quality and momentum to identify top-ranked stocks.
To qualify for the monthly lists, firms must have market capitalizations above $1 billion and at least 70% of factors in defined sweet spots; lists are capped at five names per sector.
No companies in Communications Services, Consumer Staples or Utilities met the March screening criteria, while eight other sectors produced candidates.

Raymond James unveiled its March screening list at the Raymond James Institutional Investors Conference in early March, presenting a roster of stocks that meet a multi-factor threshold and hold buy or outperform analyst ratings. The firm's approach evaluates equities across 14 distinct factors, spanning measures tied to value, growth, quality and momentum.

Under the screening rules, only companies that record 70% or more of those factors in what Raymond James designates as "sweet spots" qualify for the top-ranked lists. According to the firm, companies meeting that 70% threshold have tended to outperform peers with 50% or fewer factors in sweet spots. Those high-performing companies represent roughly 12% of the universe Raymond James analyzed.

Raymond James noted that its screening method has delivered consistent results through much of this century. The firm also acknowledged that notable exceptions to that pattern have occurred, with reversals concentrated in early cycle recoveries - an example cited was 2009. The firm will refresh the screening lists at the start of each month, citing factor shifts that occur during earnings seasons and in response to daily momentum changes.

For March, the firm produced sector-by-sector top-ranked lists limited to companies with market capitalizations above $1 billion and meeting the 70% sweet-spot threshold. The lists are also capped at five companies per sector. The sector selections for March are as follows:

Consumer Discretionary - NYSE:LEVI, NYSE:DECK, NYSE:SGI, NASDAQ:PATK, NYSE:SBH
Information Technology - NASDAQ:MANH, NASDAQ:DSGX, NASDAQ:TRMB, NASDAQ:ALRM, NASDAQ:BLKB
Energy - NYSE:RRC, NYSE:VTOL, NYSE:TDW, NASDAQ:DTM
Financials - NASDAQ:SEIC, NASDAQ:CPAY, NASDAQ:UMBF, NASDAQ:WTW, NYSE:ORI
Health Care - NYSE:EHC, NYSE:THC, NYSE:VEEV, NYSE:DOCS, NYSE:HQY
Industrials - NYSE:OSK, NASDAQ:SSNC, NASDAQ:PCTY, NYSE:ALSN, NYSE:CLH
Materials - NYSE:ATR, NYSE:CCK, NYSE:CDE, NYSE:AVY, NYSE:OR
Real Estate - NYSE:FSV, NYSE:JLL, NYSE:CIGI, NYSE:RHP, NYSE:GLPI

The firm reported that no names in Communications Services, Consumer Staples or Utilities met the screening criteria for March.

This screening exercise is intended as an evolving monthly snapshot. Raymond James said it will update the lists monthly because factor profiles can change with quarterly earnings releases and as momentum indicators shift on a daily basis.

Risks

Historical performance of the screening approach has seen reversals during early cycle recovery periods - a risk for relying solely on the screen, which notably occurred in 2009.
Factor profiles can shift during earnings seasons and through daily momentum changes, potentially altering which companies meet the 70% sweet-spot threshold from month to month.
Several sectors produced no qualifying names in March, indicating periods when the methodology may yield limited actionable candidates for certain parts of the market.

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