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Validea David Dreman Strategy Daily Upgrade Report - 8/4/2020

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.

BASF SE (ADR) (BASFY) is a large-cap growth stock in the Chemicals - Plastics & Rubber industry. The rating according to our strategy based on David Dreman changed from 61% 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: BASF SE is a Germany-based chemical company. The Company operates through six segments, which include Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. The Chemicals segment consists of the Petrochemicals and Intermediates divisions. The Materials segment consists of Performance Materials and Monomers divisions. The Industrial Solutions segment consists of Dispersions & Pigments and Performance Chemicals divisions. The Surface Technologies segment consists of Catalysts, Coatings and Construction Chemicals divisions. The Nutrition & Care segment consists of Care Chemicals and Nutrition & Health divisions. The Agricultural Solutions segment consists of Agricultural Solutions division, which focuses on provision of crop protection products and seeds.

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:FAIL
YIELD:PASS
LOOK AT THE TOTAL DEBT/EQUITY:PASS

Detailed Analysis of BASF SE (ADR)

Full Guru Analysis for BASFY

Full Factor Report for BASFY

More details on Validea's David Dreman strategy

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 aninvestment researchservice 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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At Validea we believe the best way to outperform the market is to follow the investment factors and strategies that have done so over long periods of time. Since 2003, our team has been dedicated to bringing the fundamental strategies of great investors and academics to the professional and retail investment communities via the tools, portfolios and research found on Validea.

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