An ideal stock according to our model would be inexpensive on an absolute basis, relative to its peers and relative to its history. It would be supported by high-quality earnings, as measured by things such as cash flow relative to net income, capital spending relative to depreciation and earnings-estimate dispersion. It would be financially secure, as measured by things like the levels of cash and operating cash flow versus liabilities, the operating return on assets, and the ratio of shareholders’ equity to total assets. Finally, it would be in the midst of an upswing in business operating momentum and investor sentiment, as indicated by, say, share-price momentum and earnings-estimate revisions.