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Validea David Dreman Strategy Daily Upgrade Report - 5/8/2018


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The following are today's upgrades for Validea's Contrarian Investor model based on the published strategy of David Dreman . This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.

HSBC HOLDINGS PLC (ADR) ( HSBC ) is a large-cap growth stock in the Regional Banks industry. The rating according to our strategy based on David Dreman changed from 64% to 90% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: HSBC Holdings plc ( HSBC ) is the banking and financial services company. The Company manages its products and services through four businesses: Retail Banking and Wealth Management (RBWM), Commercial Banking (CMB), Global Banking and Markets (GB&M), and Global Private Banking (GPB). It operates across various geographical regions, which include Europe, Asia, Middle East and North Africa, North America and Latin America. RBWM business offers Retail Banking, Wealth Management, Asset Management and Insurance. CMB services include working capital, term loans, payment services and international trade facilitation, among other services, as well as expertise in mergers and acquisitions, and access to financial markets. GB&M supports government, corporate and institutional clients across the world. GPB's products and services include Investment Management, Private Wealth Solutions, and a range of Private Banking services.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: FAIL
PRICE/BOOK (P/B) VALUE: PASS
PRICE/DIVIDEND (P/D) RATIO: PASS
PAYOUT RATIO: PASS
RETURN ON EQUITY: FAIL
PRE-TAX PROFIT MARGINS: PASS
YIELD: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

ASSURED GUARANTY LTD. ( AGO ) is a mid-cap value stock in the Insurance (Prop. & Casualty) industry. The rating according to our strategy based on David Dreman changed from 63% to 70% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Assured Guaranty Ltd. is a holding company. The Company, through its subsidiaries, provides credit protection products to the United States and international public finance, including infrastructure, and structured finance markets. It applies its credit underwriting judgment, risk management skills and capital markets experience primarily to offer financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. It guarantees obligations issued principally in the United States and the United Kingdom and also guarantees obligations issued in other countries and regions, including Australia and Western Europe. It also provides other forms of insurance that are in line with its risk profile and benefit from its underwriting experience.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: PASS
PRICE/DIVIDEND (P/D) RATIO: FAIL
PAYOUT RATIO: FAIL
RETURN ON EQUITY: FAIL
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

PARK HOTELS & RESORTS INC ( PK ) is a mid-cap value stock in the Real Estate Operations industry. The rating according to our strategy based on David Dreman changed from 56% to 77% based on the firm's underlying fundamentals and the stock's valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Park Hotels & Resorts Inc. is a lodging real estate company. The Company has a portfolio of hotels and resorts. The Company operates through ownership segment, which includes all of its hotel properties. As of December 31, 2016, the Company's portfolio consisted of 67 hotels and resorts with over 35,000 rooms located in the United States and international markets. Its portfolio includes hotels in areas, such as New York City, Washington, D.C., Chicago, San Francisco and London; resorts in leisure destinations, including Hawaii, Orlando and Key West, and a range of properties adjacent to gateway airports, such as Los Angeles International, Chicago O'Hare, Boston Logan and Miami Airport, and select suburban locations. The Company's brand affiliations include Conrad Hotels & Resorts, DoubleTree by Hilton, Embassy Suites by Hilton, Hampton by Hilton, Hilton Hotels & Resorts, Hilaton Garden Inn, Curio - A Collection by Hilton, and Waldorf Astoria Hotels & Resorts.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: PASS
PRICE/DIVIDEND (P/D) RATIO: PASS
CURRENT RATIO: FAIL
PAYOUT RATIO: FAIL
RETURN ON EQUITY: FAIL
PRE-TAX PROFIT MARGINS: PASS
YIELD: PASS
LOOK AT THE TOTAL DEBT/EQUITY: PASS

For a full detailed analysis using NASDAQ's Guru Analysis tool, click here

Since its inception, Validea's strategy based on David Dreman has returned 117.42% vs. 167.15% for the S&P 500. For more details on this strategy, click here

About David Dreman : Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.

About Validea : Validea is an investment research service that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks
Referenced Symbols: HSBC , AGO , PK



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