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.
LYONDELLBASELL INDUSTRIES NV ( LYB ) is a large-cap value stock in the Chemical Manufacturing industry. The rating according to our strategy based on David Dreman changed from 86% to 97% 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: LyondellBasell Industries N.V. is a plastics, chemicals and refining company. The Company operates through its Advanced Polymer Solutions segment. It produces olefins and polyethylene ( PE ) and polypropylene (PP), high density polyethylene (HDPE), low density polyethylene (LDPE) and linear low density polyethylene (LLDPE). It produces PP homopolymers, PP impact copolymers and PP random copolymers. PP compounds are produced from blends of polyolefins and additives and are sold to the automotive and home appliances industries. Its engineered composites are lightweight, materials that are used in infrastructure, aerospace and automotive applications such as headlamps. It also manufactures powders, which is a specialty particle materials used in coatings, rotational molding, toll compounding and other technical applications. Masterbatches is a coloring and additive materials used in the production of paper, paint and plastic goods around the world.
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: ||PASS |
|PRICE/CASH FLOW (P/CF) RATIO: ||PASS |
|PRICE/BOOK (P/B) VALUE: ||FAIL |
|PRICE/DIVIDEND (P/D) RATIO: ||FAIL |
|CURRENT RATIO: ||PASS |
|PAYOUT RATIO: ||PASS |
|RETURN ON EQUITY: ||PASS |
|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 110.81% vs. 190.31% 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