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Validea David Dreman Strategy Daily Upgrade Report - 8/29/2019

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.

CARNIVAL PLC (ADR) (CUK) is a large-cap value stock in the Recreational Activities 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: Carnival plc is a leisure travel company. The Company's segments include North America, and Europe, Australia & Asia (EAA). Its North America segment includes Carnival Cruise Line, Princess Cruises (Princess), Holland America Line and Seabourn. Its EAA segment includes Costa Cruises (Costa), AIDA Cruises (AIDA), P&O Cruises (the United Kingdom), P&O Cruises (Australia) and Cunard. It also includes Cruise Support segment, which represents its portfolio of port destinations and private islands. In addition to its cruise operations, it owns Holland America Princess Alaska Tours, a tour company in Alaska and the Canadian Yukon. Its tour company owns and operates hotels, lodges, glass-domed railcars and motorcoaches. Its Carnival Cruise Line offers cruises generally from 3 to 8 days with almost all of its ships departing from 16 convenient United States home ports located along the East, Gulf and West coasts, Puerto Rico and Hawaii, as of November 30, 2016.

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: FAIL
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: FAIL
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: PASS
CURRENT RATIO: FAIL
PAYOUT RATIO: PASS
RETURN ON EQUITY: FAIL
PRE-TAX PROFIT MARGINS: PASS
YIELD: PASS
LOOK AT THE TOTAL DEBT/EQUITY: PASS

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

CVR ENERGY, INC. (CVI) is a mid-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on David Dreman changed from 86% to 99% 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: CVR Energy, Inc. (CVR Energy) is a holding company. The Company is engaged in the petroleum refining and nitrogen fertilizer manufacturing through its holdings in CVR Refining LP (CVR Refining or the Refining Partnership) and CVR Partners LP (CVR Partners or the Nitrogen Fertilizer Partnership). It operates under two business segments: petroleum (the petroleum and related businesses operated by the Refining Partnership) and nitrogen fertilizer (the nitrogen fertilizer business operated by the Nitrogen Fertilizer Partnership). The Company's Refining Partnership is an independent petroleum refiner and marketer of transportation fuels. Its Nitrogen Fertilizer Partnership produces and markets nitrogen fertilizers in the form of urea and ammonium nitrate (UAN) and ammonia. The petroleum business consists of a coking medium-sour crude oil refinery in Coffeyville, Kansas and a crude oil refinery in Wynnewood, Oklahoma.

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

Since its inception, Validea's strategy based on David Dreman has returned 104.67% vs. 191.62% 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.

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