GuruFocus’ model portfolios track the performance of various guru strategies and value strategies against the Standard & Poor’s 500 index benchmark. Five of the model portfolios are based on the GF Score, a comprehensive score that has been found to be closely correlated to the long-term performances of stocks based on backtesting from 2006 to 2021.
GF Score
The GF Score considers five key rankings: financial strength, profitability, valuation, growth and momentum. Figure 1 illustrates a sample GF Score chart for Apple Inc. (AAPL).
Figure 1
Each individual rank ranges from 1 to 10, with 10 as the highest score. The overall GF Score ranges from 0 to 100, with 100 as the highest score. GuruFocus’ backtesting research found that stocks with a higher GF Score generally produce higher returns than do stocks with a lower GF Score. Table 1 lists the outperformance categories for specific GF Score zones.
GF Score Range | Outperformance Potential |
91-100 | Highest |
81-90 | Good |
71-80 | Average |
51-70 | Poor |
0-50 | Worst or indeterminate |
Table 1
For more information about the GF Score, please consult the following tutorial video:
Highest Outperformance Potential companies
The Highest Outperformance Potential model portfolio contains stocks with GF Score between 91 and 100 out of 100. An example stock is Accenture PLC (ACN): The stock has a GF Score of 99 out of 100 based on a rank of 10 out of 10 for profitability, growth and momentum despite financial strength and GF Value ranking between 7 and 8 out of 10.
Gurus with holdings in Accenture include Jeremy Grantham (Trades, Portfolio)’s GMO and Daniel Loeb (Trades, Portfolio)’s Third Point.
Users can screen for the highest growth potential stocks using the All-in-One Screener, a Premium feature of GuruFocus.
Good Outperformance Potential companies
The Good Outperformance Potential model portfolio contains stocks with GF Score between 81 and 90 out of 100. An example stock is NXP Semiconductors NV (NXPI): The stock has a GF Score of 89 out of 100 based on a growth rank of 9 out of 10, a profitability rank of 8 out of 10, a momentum rank of 7 out of 10, a GF Value rank of 6 out of 10 and a financial strength rank of 5 out of 10.
You can see the current list of good growth potential stocks using the screener.
Average Future Performance Potential companies
The Average Future Performance Potential model portfolio contains stocks with GF Score between 71 and 80 out of 100. An example stock is Under Armour Inc. (UAA): The stock has a GF Score of 79 out of 100 on the back of a GF Value rank of 10 out of 10 despite financial strength and profitability ranking 7 out of 10 while growth and momentum rank between 4 and 5 out of 10.
You can see the current list of average growth potential stocks using the following screener.
Underperformance Potential companies
The Underperformance Potential model portfolio contains stocks with a GF Score between 61 and 70. An example stock is Consolidated Edison Inc. (ED): The stock has a GF Score of 69 out of 100 on the back of a profitability rank of 7 despite financial strength, growth, GF Value and momentum ranking between 3 and 5 out of 10.
You can see the current list of underperformance potential stocks using the following screener.
Poor Future Performance potential companies
The Poor Future Performance Potential model portfolio contains stocks with a GF Score between 51 and 60. An example stock is Hilton Worldwide Holdings Inc. (HLT): The stock has a GF Score of 58 out of 100, driven by a rank of 1 for growth and GF Value and a financial strength rank of 3 out of 10 despite momentum ranking 9 out of 10 and profitability ranking 7 out of 10.
You can see the current list of poor performance potential stock using the following screener.
