AAII's 2025 Review of Stock Screens shows that while most strategies posted gains, only a subset managed to outperform the S&P 500. One standout was the Wanger Revised screen, which delivered strong results by focusing on "zebras", quality small-cap companies operating in niche markets and breaking away from the herd.
The review also highlights an important reality of quantitative investing: different screens shine in different market environments. Some excel during bull markets, others provide downside protection in bear markets, and many experience long stretches of underperformance before results reassert themselves. Read the full article here.
So when deciding which stock screens to follow, what matters most to you and why?
How do you balance conviction in a screening methodology with the patience required to stick with it when results lag?
If you haven't yet, take a few minutes to read "2025 Review of AAII Stock Screens: Wanger's Zebras Break From the Herd." The article provides helpful context on why certain strategies worked in 2025, how different screens compare on risk and consistency, and what investors should consider when using screens as idea generators.
Looking forward to hearing how others evaluate and use stock screens in their own investing process.
------------------------------
Jenna Brashear
AAII Community Manager
Chicago, IL
------------------------------