Markets

Validea David Dreman Strategy Daily Upgrade Report - 10/23/2019

The following are today's upgrades for Validea's Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.

COMPANHIA ENERGETICA DE MINAS GERS CEMIG (CIG) is a mid-cap value stock in the Electric Utilities industry. The rating according to our strategy based on David Dreman changed from 83% to 90% 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: Companhia Energetica de Minas Gerais-CEMIG is a holding company that is engaged in the generation, transmission and distribution of electricity. The Company's segments include Generation, Transmission, Distribution, Telecom, Gas and Other. The Company, through its interests in subsidiaries or jointly controlled entities, is engaged in the activities of the construction and operation of systems for sale of electricity, as well as various fields of energy and telecommunications, for the purpose of commercial operation. Its electric power transmission business consists of transporting power from the facilities where it is generated to points of consumption, distribution networks and Free Consumers. Its distribution operation consists of transfers of electricity from distribution substations to final consumers. It is also engaged in businesses, such as telecommunications, energy solutions consulting, and acquisition, transport and distribution of gas and its subproducts and derivatives.

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.

MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: PASS

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

LYONDELLBASELL INDUSTRIES NV (LYB) is a large-cap value stock in the Chemical Manufacturing industry. The rating according to our strategy based on David Dreman changed from 64% 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: LyondellBasell Industries N.V. is a plastics, chemicals and refining company. The Company operates through its Advanced Polymer Solutions segment. It produces olefins and polyethylene (PE) and polypropylene (PP), high density polyethylene (HDPE), low density polyethylene (LDPE) and linear low density polyethylene (LLDPE). It produces PP homopolymers, PP impact copolymers and PP random copolymers. PP compounds are produced from blends of polyolefins and additives and are sold to the automotive and home appliances industries. Its engineered composites are lightweight, materials that are used in infrastructure, aerospace and automotive applications such as headlamps. It also manufactures powders, which is a specialty particle materials used in coatings, rotational molding, toll compounding and other technical applications. Masterbatches is a coloring and additive materials used in the production of paper, paint and plastic goods around the world.

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.

MARKET CAP: PASS MARKET CAP: PASS
EARNINGS TREND: PASS EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: PASS CURRENT RATIO: FAIL
PAYOUT RATIO: PASS PAYOUT RATIO: FAIL
RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL YIELD: PASS
LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: FAIL

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

NUSTAR ENERGY L.P. (NS) is a mid-cap value stock in the Oil Well Services & Equipment industry. The rating according to our strategy based on David Dreman changed from 57% to 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: NuStar Energy L.P. is engaged in the transportation of petroleum products and anhydrous ammonia; the terminalling and storage of petroleum products, and the marketing of petroleum products. The Company's segments include pipeline, storage and fuels marketing. The pipeline segment consists of the transportation of refined petroleum products, crude oil and anhydrous ammonia. The storage segment consists of facilities that provide storage, handling and other services for petroleum products, crude oil, specialty chemicals and other liquids. The fuels marketing segment involve the purchase of crude oil, fuel oil, bunker fuel, fuel oil blending components and other refined products for resale. It conducts its operations through its subsidiaries, primarily NuStar Logistics, L.P. and NuStar Pipeline Operating Partnership L.P. As of May 4, 2017, it had more than 9,200 miles of pipeline and 81 terminal and storage facilities that provide approximately 96 million barrels of storage capacity.

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.

MARKET CAP: PASS MARKET CAP: PASS MARKET CAP: PASS
EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: PASS
CURRENT RATIO: PASS CURRENT RATIO: FAIL CURRENT RATIO: PASS
PAYOUT RATIO: PASS PAYOUT RATIO: FAIL PAYOUT RATIO: FAIL
RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: FAIL
PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: FAIL
YIELD: FAIL YIELD: PASS YIELD: PASS
LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: FAIL LOOK AT THE TOTAL DEBT/EQUITY: FAIL

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

TELEFONICA BRASIL SA (ADR) (VIV) is a large-cap value stock in the Communications Services industry. The rating according to our strategy based on David Dreman changed from 76% to 83% 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: Telefonica Brasil S.A. is a mobile telecommunications company in Brazil offering postpaid mobile services. The Company also operates as a fixed telecommunications company in the state of Sao Paulo. The Company markets its mobile services under its Vivo brand. It offers its clients a portfolio of products, including mobile and fixed voice, mobile data, fixed broadband, ultra-fast broadband, Pay television, information technology and digital services. Its operations consist of local and long distance fixed telephone services; mobile services, including value-added services; data services, including broadband services and mobile data services; Pay television services through direct to home (DTH), Internet protocol television (IPTV) and cable; network services, such as rental of facilities, as well as other services; wholesale services, including interconnection; digital services; services designed specifically for corporate customers, and the sale of wireless devices and accessories.

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.

MARKET CAP: PASS MARKET CAP: PASS MARKET CAP: PASS MARKET CAP: PASS
EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: FAIL P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: PASS PRICE/DIVIDEND (P/D) RATIO: PASS
CURRENT RATIO: PASS CURRENT RATIO: FAIL CURRENT RATIO: PASS CURRENT RATIO: PASS
PAYOUT RATIO: PASS PAYOUT RATIO: FAIL PAYOUT RATIO: FAIL PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: FAIL RETURN ON EQUITY: FAIL
PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: FAIL PRE-TAX PROFIT MARGINS: PASS
YIELD: FAIL YIELD: PASS YIELD: PASS YIELD: PASS
LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: FAIL LOOK AT THE TOTAL DEBT/EQUITY: FAIL LOOK AT THE TOTAL DEBT/EQUITY: PASS

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

Since its inception, Validea's strategy based on David Dreman has returned 127.40% vs. 201.38% for the S&P 500. For more details on this strategy, click here

About David Dreman: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.

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.

Latest Markets Videos