Value Composition in Focus For Jack in the Box Inc. (NasdaqGS:JACK) and Centrica plc (LSE:CNA)
Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 41. These companies tend to pump earnings back into the business, and they generally expand quicker than the overall economy. Although growth stocks can be a bit riskier, they can also provide a higher level of reward down the line. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. Stock portfolio diversification entails spreading the investment dollars around to help minimize risk. When investors are creating a portfolio, they may be looking to add a combination of growth, value, income, dividend, and foreign stocks.