Piotroski score

The Piotroski score is designed to identify high-quality firms by looking at nine separate criteria.

The Piotroski score is designed to identify high-quality firms - ie, those that are growing profits without resorting to accounting tricks, increasing balance-sheet risk or sacrificing margins for higher volume.

It's a fairly simple screen looking at nine separate criteria. If the firm passes each test it earns a one, otherwise it scores a zero; these individual marks are added to give a total Piotroski score between one and nine. Stocks with a score of five or more are considered to be reasonably strong and studies suggest that value stocks with a high score tend to outperform.

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