The Globe and Mail reports in its Saturday edition that the newspaper's "Megastar" rankings of the largest 250 stocks in Canada is returning. Globe columnist Norman Rothery writes that the rankings will provide a bounty of data on each stock along with ratings that sum up their merit as value and momentum investments. Megastars builds on last year's group, which soared 51.1 per cent. The star system takes a disciplined approach to the stock market based on the numbers. The idea is to push aside intuition or speculation about a company's prospects and instead stick to quantitative factors that have been successful over the long term -- and that will likely continue to enrich investors. The Globe weighs up each stock based on its appeal to value investors using four factors and then its attractiveness to momentum investors using four more factors. The Megastar group combines all eight factors in an effort to find the best "bargain stocks on the mend" the market has to offer. The Globe highlights the largest 250 common stocks on the Toronto Stock Exchange by market capitalization that have at least 12 months of trading history. The idea is to stick with reasonably sized companies that have enough data to rank fairly.
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