The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool . This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.
ENERGY RECOVERY, INC. ( ERII ) is a small-cap growth stock in the Misc. Capital Goods industry. The rating according to our strategy based on Motley Fool changed from 49% to 76% 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: Energy Recovery, Inc. is an energy solutions provider to industrial fluid flow markets. The Company's solutions convert wasted pressure energy into a reusable asset and preserve or eliminate pumping technology in hostile processing environments. Its segments include Water, Oil & Gas, and Corporate. The Water Segment focuses on products sold for use in reverse osmosis water desalination. The Oil & Gas Segment consists of products sold for use in hydraulic fracturing, gas processing, and chemical processing. The Company offers energy recovery devices (ERDs) in the water desalination market with its pressure exchanger (PX) and turbocharger technologies. The Company offers VorTeq hydraulic fracturing system, IsoBoost, and IsoGen product lines to the oil and gas market. The Company's customers include engineering, procurement and construction companies, original equipment manufacturers, international oil companies, national oil companies, and exploration and production companies.
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.
|PROFIT MARGIN: ||PASS |
|RELATIVE STRENGTH: ||FAIL |
|COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: ||FAIL |
|INSIDER HOLDINGS: ||PASS |
|CASH FLOW FROM OPERATIONS: ||PASS |
|PROFIT MARGIN CONSISTENCY: ||PASS |
|R&D AS A PERCENTAGE OF SALES: ||NEUTRAL |
|CASH AND CASH EQUIVALENTS: ||PASS |
|INVENTORY TO SALES: ||PASS |
|ACCOUNTS RECEIVABLE TO SALES: ||PASS |
|LONG TERM DEBT/EQUITY RATIO: ||PASS |
|"THE FOOL RATIO" (P/E TO GROWTH): ||FAIL |
|AVERAGE SHARES OUTSTANDING: ||PASS |
|SALES: ||PASS |
|DAILY DOLLAR VOLUME: ||PASS |
|PRICE: ||PASS |
|INCOME TAX PERCENTAGE: ||FAIL |
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Motley Fool has returned 506.28% vs. 191.30% for the S&P 500. For more details on this strategy, click here
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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