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Validea's Top Five Financial Stocks Based On Benjamin Graham - 9/9/2018


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The following are the top rated Financial stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham . This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.

WADDELL & REED FINANCIAL, INC. ( WDR ) is a small-cap value stock in the Investment Services industry. The rating according to our strategy based on Benjamin Graham is 86% 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: Waddell & Reed Financial, Inc., incorporated on December 24, 1981, is a holding company. The Company is a mutual fund and asset management company. The Company provides investment management, investment advisory, investment product underwriting, and distribution and shareholder services administration to Waddell & Reed Advisors group of mutual funds (the Advisors Funds), Ivy Funds, Ivy Funds Variable Insurance Portfolios (Ivy Funds VIP), InvestEd Portfolios and 529 college savings plan (collectively, the Funds), and the Ivy Global Investors Fund SICAV (the SICAV) and its Ivy Global Investors sub-funds (the IGI Funds), and institutional and separately managed accounts. The Company operates its business through a distribution network. Its retail products are distributed through third parties, such as other broker-dealers, registered investment advisors and various retirement platforms or through associated independent contractor financial advisors.

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.

SECTOR:FAIL
SALES:PASS
CURRENT RATIO:PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:PASS
LONG-TERM EPS GROWTH:PASS
P/E RATIO:PASS
PRICE/BOOK RATIO:PASS

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

JANUS HENDERSON GROUP PLC ( JHG ) is a mid-cap value stock in the Investment Services industry. The rating according to our strategy based on Benjamin Graham is 86% 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: Janus Henderson Group plc, formerly Henderson Group plc, is an independent asset manager, specializing in active investment. The Company is a client-focused global business with assets under management. It manages a range of actively managed investment products for institutional and retail investors, across five capabilities, which include European equities, global equities, global fixed income, multi-asset and alternatives, including private equity and property. The Company has its operations throughout the Europe, Middle East and Africa (EMEA), the United Kingdom, Asia and Australia. Its global fixed income covers fixed income asset classes, including government debt, secured assets, corporate debt and derivative instruments, using asset allocation and multiple investment techniques. Its European equities fund range encompasses a range of market capitalization specialisms. Its clients include financial professionals, private and institutional investors.

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.

SECTOR:FAIL
SALES:PASS
CURRENT RATIO:PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:PASS
LONG-TERM EPS GROWTH:PASS
P/E RATIO:PASS
PRICE/BOOK RATIO:PASS

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

ARES CAPITAL CORPORATION ( ARCC ) is a mid-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Benjamin Graham is 57% 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: Ares Capital Corporation is a specialty finance company. The Company operates as a closed-end, non-diversified management investment company. The Company's investment objective is to generate both current income and capital appreciation through debt and equity investments. It invests primarily in the United States middle-market companies. It may from time to time invest in larger or smaller (in particular, for investments in early-stage and/or venture capital-backed) companies. It invests primarily in first lien senior secured loans (including unitranche loans, which are loans that combine both senior and mezzanine debt, generally in a first lien position), second lien senior secured loans, and mezzanine debt, which in some cases includes an equity component. It invests in various industries, such as automotive services, business services, consumer products, and containers and packaging. Ares Capital Management LLC serves as its investment advisor.

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.

SECTOR:FAIL
SALES:PASS
CURRENT RATIO:FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:FAIL
LONG-TERM EPS GROWTH:PASS
P/E RATIO:PASS
PRICE/BOOK RATIO:PASS

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

ASSURED GUARANTY LTD. ( AGO ) is a mid-cap value stock in the Insurance (Prop. & Casualty) industry. The rating according to our strategy based on Benjamin Graham is 57% 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: Assured Guaranty Ltd. is a holding company. The Company, through its subsidiaries, provides credit protection products to the United States and international public finance, including infrastructure, and structured finance markets. It applies its credit underwriting judgment, risk management skills and capital markets experience primarily to offer financial guaranty insurance that protects holders of debt instruments and other monetary obligations from defaults in scheduled payments. It markets its financial guaranty insurance directly to issuers and underwriters of public finance and structured finance securities, as well as to investors in such obligations. It guarantees obligations issued principally in the United States and the United Kingdom and also guarantees obligations issued in other countries and regions, including Australia and Western Europe. It also provides other forms of insurance that are in line with its risk profile and benefit from its underwriting experience.

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.

SECTOR:FAIL
SALES:PASS
CURRENT RATIO:FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:FAIL
LONG-TERM EPS GROWTH:PASS
P/E RATIO:PASS
PRICE/BOOK RATIO:PASS

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

SHINHAN FINANCIAL GROUP CO., LTD. (ADR) ( SHG ) is a large-cap value stock in the Regional Banks industry. The rating according to our strategy based on Benjamin Graham is 57% 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: Shinhan Financial Group Co., Ltd. (SFG) is a financial holding company. The Company operates through five segments: commercial banking services, which are provided by Shinhan Bank Co., Ltd. (Shinhan Bank); credit card services, which are provided by Shinhan Card Co., Ltd. (Shinhan Card); securities brokerage services, which are provided by Shinhan Investment Corp. (Shinhan Investment); life insurance services, which are provided by Shinhan Life Insurance Co., Ltd. (Shinhan Life Insurance), and other. The Company's other services include leasing and equipment financing, regional banking services, savings banking services, loan collection and credit reporting, collective investment administrative services and financial system development services, as well as engaging in private equity investments through formation of private equity funds on a private placement basis. It also offers asset management services, including brokerage and trading of various securities.

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.

SECTOR:FAIL
SALES:PASS
CURRENT RATIO:FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:FAIL
LONG-TERM EPS GROWTH:PASS
P/E RATIO:PASS
PRICE/BOOK RATIO:PASS

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

Since its inception, Validea's strategy based on Benjamin Graham has returned 518.39% vs. 187.05% for the S&P 500. For more details on this strategy, click here

About Benjamin Graham : The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.

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: WDR , JHG , ARCC , AGO , SHG



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