Monday, January 20

Finance

In what could represent a significant transformation of the insulin marketplace, Eli Lilly has announced it will slash the price of two of its insulin products by 70%; Humalog (insulin lispro) and Humulin (human insulin). Additionally, the company plans to greatly expand an existing patient assistance program by capping commercially insured and uninsured patients’ out-of-pocket costs at $35 a month.

In this article I cover a classic strategy that combines three fundamental factors into a score used to identify promising value stocks. The AAII Fundamental Rule of Thumb screen combines the price-earnings (P/E) ratio, dividend yield and adjusted return on equity (ROE). A list of stocks that currently pass the Fundamental Rule of Thumb screen is included below. This screening model has shown impressive long-term performance, with an average annual gain since 1998 of 9.6% through the close on February 28, 2023, versus 5.6% for the S&P 500 index over the same period. Read on to understand why this screen is still valid in today’s market.

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