The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch . This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
UNITED COMMUNITY FINANCIAL CORP ( UCFC ) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 7% to 93% 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: United Community Financial Corp. is financial services holding company. The Company's subsidiaries include The Home Savings and Loan Company of Youngstown, Ohio (Home Savings or the Bank), HSB Insurance, LLC and HSB Capital, LLC. The principal business of Home Savings is the origination of mortgage loans, including construction loans, on residential and nonresidential real estate located in Home Savings' primary market area. In addition to real estate lending, Home Savings originates commercial loans and various types of consumer loans. Funds for lending and other investment activities are obtained primarily from retail deposits. HSB Insurance, LLC is an insurance agency that offers a range of insurance products for business and residential customers, which include, auto, homeowners, life-health, commercial, surety bonds and aviation. HSB Capital, LLC provides mezzanine funding for customers. Mezzanine loans are offered to customers in United Community's market area.
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.
|P/E/GROWTH RATIO: ||PASS |
|SALES AND P/E RATIO: ||NEUTRAL |
|EPS GROWTH RATE: ||PASS |
|TOTAL DEBT/EQUITY RATIO: ||NEUTRAL |
|EQUITY/ASSETS RATIO: ||PASS |
|RETURN ON ASSETS: ||PASS |
|FREE CASH FLOW: ||NEUTRAL |
|NET CASH POSITION: ||NEUTRAL |
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Since its inception, Validea's strategy based on Peter Lynch has returned 366.59% vs. 189.34% for the S&P 500. For more details on this strategy, click here
About Peter Lynch : Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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