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Validea Joseph Piotroski Strategy Daily Upgrade Report - 4/23/2019


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The following are today's upgrades for Validea's Book/Market Investor model based on the published strategy of Joseph Piotroski . This value-quant strategy screens for high book-to-market stocks, and then separates out financially sound firms by looking at a host of improving financial criteria.

CATO CORP ( CATO ) is a small-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Joseph Piotroski changed from 0% 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: The Cato Corporation is a fashion specialty retailer. The Company's merchandise lines include dressy, career, and casual sportswear, dresses, coats, shoes, lingerie, costume jewelry, handbags, men's wear and lines for kids and newborns. The Company has two segments: the operation of a fashion specialty stores segment (Retail Segment) and a credit card segment (Credit Segment). The Company operated its women's fashion specialty retail stores in 33 states as of January 28, 2017, principally in the southeastern United States. The Company offers its own credit card to its customers and all credit authorizations, payment processing, and collection efforts are performed by a separate subsidiary of the Company. The Company's stores offer an assortment of on-trend apparel and accessory items in primarily junior/missy, plus sizes, men's and kids sizes with a focus on color, product coordination and selection.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: FAIL
CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS

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

DILLARD'S, INC. ( DDS ) is a small-cap value stock in the Retail (Department & Discount) industry. The rating according to our strategy based on Joseph Piotroski changed from 0% to 80% 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: Dillard's, Inc. is a retailer of fashion apparel, cosmetics and home furnishing. As of January 28, 2017, the Company operated 293 Dillard's stores, including 25 clearance centers, and an Internet store offering a selection of merchandise, including fashion apparel for women, men and children, accessories, cosmetics, home furnishings and other consumer goods. The Company's segments include the Retail operations segment and the Construction segment. The Retail operations segment includes the operation of the Company's retail department stores. The Construction segment includes the operations of CDI Contractors, LLC (CDI), a general contracting construction company. CDI's business includes constructing and remodeling stores for the Company. As of January 28, 2017, the Company operated retail department stores in 29 states, primarily in the southwest, southeast and midwest regions of the United States.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS FAIL
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS

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

VEDANTA LTD (ADR) ( VEDL ) is a mid-cap value stock in the Metal Mining industry. The rating according to our strategy based on Joseph Piotroski changed from 0% to 80% 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: Vedanta Limited is a natural resource company engaged in the business of manufacturing copper and copper products, and aluminum and aluminum products. The Company's segments include Copper, which consists of manufacturing of copper cathode, continuous cast copper rod and anode slime, including from purchased concentrate and manufacturing of precious metal from anode slime, sulfuric acid, phosphoric acid; Iron ore; Aluminium, which consists of manufacturing of alumina and various aluminum products; Power, which consists of power, including power facilities engaged in generation and sale of commercial power, and Other, which consists pig iron and metallurgical coke. Its iron ore business consists of iron ore exploration, mining, beneficiation and exports. The Company has iron ore mining operations in the States of Goa and Karnataka. Its copper business consists of custom smelting. Its power business consists of 2,400 megawatt thermal coal based power facility in the State of Odisha.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: FAIL
CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS

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

Since its inception, Validea's strategy based on Joseph Piotroski has returned 153.71% vs. 153.98% for the S&P 500. For more details on this strategy, click here

About Joseph Piotroski : Piotroski isn't your typical Wall Street big shot. In fact, he's not even a professional investor. He's a good old numbers-crunching accountant and college professor. But in 2000, shortly after he started teaching at the University of Chicago's Graduate School of Business, Piotroski published a groundbreaking paper in the Journal of Accounting Research entitled "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers". In it, Piotroski laid out an accounting-based stock-selection/shorting method that produced a 23 percent average annual back-tested return from 1976 through 1996 -- more than double the S&P 500's gain during that time. Piotroski's findings were reported in major financial publiations like SmartMoney. Today, he teaches accounting at Stanford University's Graduate School of Business.

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: CATO , DDS , VEDL



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