Six stocks for contrarian investors

In this week's Stockopedia Strategy Map article, Megan looked at the Contrarian Style of investing, Stocks that are both cheap and high quality. The Stockopedia Screening Tools make it easy to find potential QV candidates. Subscribers can simply screen for companies scoring highly on Value and Quality ranks. For this screen, I pick 90 for Value and 85 for Quality. (The Quality Rank measures a broader range of factors, so it makes sense to be slightly more relaxed on the criteria here.)

As of writing, this simple screen gives 37 results. However, at this point, I will exclude several industry groups. First, I am excluding anything to do with resource stocks. This kind of screen tends to select commodity stocks when they are at their most profitable. Unfortunately, this tends to be at the peak of the cycle. These may well be great investments, but it needs a different mindset to invest successfully in this sector. (I wrote about how to think about this sector here.) The same cyclicality characteristics also affect property and housing stocks, so I exclude these industry segments too.

Likewise, I have excluded Banks and Collective Investments because they...