Ranking
Prices as of the Oct. 16, 2026 close for all four picks. Click any row to open its memo or research page.
| Rank | Company | Screen checks | Price | Base value | Margin of safety | 35% MoS price |
|---|---|---|---|---|---|---|
| 1 | G Genpact | 8 / 8 checks | $37.26 | $78.24 | 52.4% | $50.86 |
| 2 | HRMY Harmony Biosciences | 7 / 8 checks | $37.95 | $119.23 | 68.2% | $77.50 |
| 3 | ADBE Adobe Inc. | 7 / 8 checks | $245.20 | $451.06 | 45.6% | $293.19 |
| 4 | DECK Deckers Outdoor Corporation | 3 / 8 checks | $85.71 | $147.51 | 41.9% | $95.88 |
Margin of safety is 1 minus price divided by base value. The 35% MoS price is the price at which the margin reaches 35%. Screen checks are the number of the 8 screen checks each stock passes. Rank is by checks passed, then by screen margin of safety.
What the 8 screen checks test
- Return on equity. ROE is at least 15% in every one of the last five years.
- Profitable EPS. Diluted EPS is positive in every one of the last five years.
- Owner earnings. Operating cash flow minus capital spending is positive in every one of the last five years.
- Debt payback. Long-term debt is no more than four years of net income.
- Margin of safety. The screen's DCF value is at least 25% above the price.
- Earnings growth. Five-year EPS growth is between 10% and 30% a year.
- PEG. The price-to-earnings ratio divided by the growth rate is 1 or less.
- Debt to equity. Total debt is no more than equity.
These are mechanical tests on reported SEC figures, not an assessment of the business. A stock can pass all eight and still be a poor investment, and a stock can fail one for a reason that does not matter. Each check has a threshold that can be changed.