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Validea's Top Five Basic Materials Stocks Based On Motley Fool - 1/22/2018


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The following are the top rated Basic Materials stocks according to 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.

CHASE CORPORATION ( CCF ) is a small-cap growth stock in the Containers & Packaging industry. The rating according to our strategy based on Motley Fool is 73% 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: Chase Corporation is engaged in manufacturing of protective materials for reliability applications. The Company's operating segments include industrial materials segment and construction materials segment. The Industrial Materials segment includes specified products that are used in, or integrated into, another company's product, with demand typically dependent upon general economic conditions. The industrial material includes insulating and conducting materials for the manufacture of electrical and telephone wire and cable, electrical splicing, and terminating and repair tapes, which are marketed to wire and cable manufacturers. The Construction Materials segment consists of project-oriented product offerings that are sold and used as Chase branded products. The Company's principal products are specialty tapes, laminates, sealants, coatings and chemical intermediates. Its manufacturing facilities are located at O'Hara Township, Pennsylvania and Blawnox, Pennsylvania facilities.

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:FAIL
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:PASS

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

SUN HYDRAULICS CORPORATION ( SNHY ) is a small-cap growth stock in the Misc. Fabricated Products industry. The rating according to our strategy based on Motley Fool is 73% 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: Sun Hydraulics Corporation (Sun) develops and manufactures solutions for the hydraulics and electronics markets. It is engaged in power controls and vehicle technologies lines of business. The Company operates through two segments including hydraulics and electronics. Hydraulics market segment is engaged in manufacturing of screw-in hydraulic cartridge valves, electro-hydraulics, manifolds, and integrated package solutions for the worldwide industrial and mobile hydraulics markets operating under the brand Sun Hydraulics. Electronics market segment provides electronic control, display and instrumentation solutions for both recreational and off-highway vehicles, as well as stationary and power generation equipment and that offered under the brands of Enovation Controls, Murphy and Zero Off.

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:PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR:PASS
INSIDER HOLDINGS:FAIL
CASH FLOW FROM OPERATIONS:PASS
PROFIT MARGIN CONSISTENCY:FAIL
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:FAIL
"THE FOOL RATIO" (P/E TO GROWTH):FAIL
AVERAGE SHARES OUTSTANDING:PASS
SALES:PASS
DAILY DOLLAR VOLUME:PASS
PRICE:PASS
INCOME TAX PERCENTAGE:PASS

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

TREX COMPANY INC ( TREX ) is a mid-cap growth stock in the Forestry & Wood Products industry. The rating according to our strategy based on Motley Fool is 72% 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: Trex Company, Inc. is a manufacturer of wood-alternative decking and railing products. The Company's products are marketed under the brand name Trex and are manufactured in the United States. It offers a set of outdoor living products in the decking, railing, porch, fencing, trim, steel deck framing and outdoor lighting categories. Its decking products include Trex Transcend, Trex Enhance and Trex Select. The Company's railing products include Trex Transcend Railing, Trex Select Railing and Trex Signature aluminum railing. It offers Trex Transcend Porch Flooring and Railing System, which is an integrated system of porch components and accessories. The Company offers Trex Seclusions fencing product, which consists of structural posts, bottom rail, pickets, top rail and decorative post caps. It offers a triple-coated steel deck framing system called Trex Elevations. The Company also offers outdoor lighting systems, such as Trex DeckLighting and Trex Landscape Lighting.

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:PASS
INSIDER HOLDINGS:FAIL
CASH FLOW FROM OPERATIONS:PASS
PROFIT MARGIN CONSISTENCY:PASS
R&D AS A PERCENTAGE OF SALES:NEUTRAL
CASH AND CASH EQUIVALENTS:FAIL
INVENTORY TO SALES:PASS
ACCOUNTS RECEIVABLE TO SALES:PASS
LONG TERM DEBT/EQUITY RATIO:PASS
"THE FOOL RATIO" (P/E TO GROWTH):PASS
AVERAGE SHARES OUTSTANDING:PASS
SALES:FAIL
DAILY DOLLAR VOLUME:FAIL
PRICE:PASS
INCOME TAX PERCENTAGE:PASS

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

SIMPSON MANUFACTURING CO, INC. ( SSD ) is a mid-cap growth stock in the Misc. Fabricated Products industry. The rating according to our strategy based on Motley Fool is 69% 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: Simpson Manufacturing Co., Inc., through its subsidiary, Simpson Strong-Tie Company Inc. (SST), designs, engineers and manufactures wood construction products, including connectors, truss plates, fastening systems, fasteners and pre-fabricated lateral systems used in light-frame construction. The Company's segments are North America, Europe, Asia/Pacific, and Administrative & All Other. The North America segment includes operations primarily in the United States and Canada. The Europe segment includes operations primarily in France, the United Kingdom, Germany, Denmark, Switzerland, Portugal, Poland, the Netherlands and Belgium. The Asia/Pacific segment includes operations primarily in Australia, New Zealand, South Africa, China, Taiwan and Vietnam. The Company manufactures concrete construction products used for concrete, masonry, steel construction and for concrete repair, protection and strengthening, including adhesives, chemicals and mechanical anchors.

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:FAIL
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:FAIL
DAILY DOLLAR VOLUME:PASS
PRICE:PASS
INCOME TAX PERCENTAGE:PASS

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

TERNIUM SA (ADR) ( TX ) is a mid-cap value stock in the Iron & Steel industry. The rating according to our strategy based on Motley Fool is 69% 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: Ternium S.A. is a producer of steel products. The Company produces finished and semi-finished steel products and iron ore, which are sold either directly to steel manufacturers, steel processors or end users. The Company operates through two segments: Steel and Mining. The Steel segment includes the sales of steel products and the Mining segment includes the sales of iron ore products, which are primarily inter-company. The Steel segment comprises three operating segments: Mexico, the Southern Region and Other Markets. In the steel segment, steel products include slabs, billets and round bars (steel in its basic, semi-finished state), hot-rolled coils and sheets, bars and stirrups, wire rods, cold-rolled coils and sheets, tin plate, hot dipped galvanized and electrogalvanized sheets and pre-painted sheets, steel pipes and tubular products, beams, roll-formed products, and other products. In the mining segment, iron ore is sold as concentrates (fines) and pellets.

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:PASS
INSIDER HOLDINGS:FAIL
CASH FLOW FROM OPERATIONS:PASS
PROFIT MARGIN CONSISTENCY:PASS
R&D AS A PERCENTAGE OF SALES:NEUTRAL
CASH AND CASH EQUIVALENTS:FAIL
INVENTORY TO SALES:PASS
ACCOUNTS RECEIVABLE TO SALES:PASS
LONG TERM DEBT/EQUITY RATIO:FAIL
"THE FOOL RATIO" (P/E TO GROWTH):PASS
AVERAGE SHARES OUTSTANDING:PASS
SALES:FAIL
DAILY DOLLAR VOLUME:PASS
PRICE:PASS
INCOME TAX PERCENTAGE:PASS

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 582.50% vs. 180.91% for the S&P 500. For more details on this strategy, click here

About Motley Fool : Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.

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: CCF , SNHY , TREX , SSD , TX



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