A Quality Exec Comp Plan Lowers The Risk Of Investing In AutoZone.

Recap from June Picks

The Exec Comp Aligned with ROIC Model Portfolio (+5.6%) outperformed the S&P 500 (+0.8%) from June 15, 2023 through July 12, 2023. The best performing stock in the portfolio was up 19%. Overall, 13 out of the 15 Exec Comp Aligned with ROIC Stocks outperformed the S&P from June 15, 2023 through July 12, 2023.

This Model Portfolio only includes stocks that earn an attractive or very attractive rating and align executive compensation with improving ROIC. I think this combination provides a uniquely well-screened list of long ideas because return on invested capital (ROIC) is the primary driver of shareholder value creation.