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.
COVETRUS INC ( CVET ) is a small-cap growth stock in the Fish/Livestock 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: Covetrus, Inc. is a global animal-health technology and services company. The Company provides service and technology platform to animal veterinary markets. It combines practice management software, prescription management, multi-channel client engagement services and supply chain infrastructure to promote connectivity between veterinarians and clients. The Company is also focused on providing inventory management, specialty pharmacy services, solutions to chronic care disease management, veterinary practice management software and client communication tools.
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: ||FAIL |
|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 117.39% vs. 155.59% 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