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Validea James P. O'Shaughnessy Strategy Daily Upgrade Report - 8/14/2019

The following are today's upgrades for Validea's Growth/Value Investor model based on the published strategy of James P. O'Shaughnessy. This two strategy approach offers a large-cap value model and a growth approach that looks for persistent earnings growth and strong relative strength.

LEXINFINTECH HOLDINGS LTD - ADR (LX) is a small-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on James P. O'Shaughnessy changed from 75% to 100% 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: LexinFintech Holdings Ltd. is a holding company. The Company is primarily engaged in providing online direct sales services and online consumer finance services. The Company's online consumer finance platform, Fenqile, offers customers personal installment loans, installment purchase loans and other loan products. Through its online investment platform, Juzi Licai, the Company matches funding from individual investors with customer loans. The Company also offers Le Card credit line to its customers. The Company serves the credit needs of the customers aged between 18 and 36 in China.

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 PER SHARE PERSISTENCE: PASS
PRICE/SALES RATIO: PASS
RELATIVE STRENGTH: PASS

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

FEDERAL AGRICULTURAL MORTGAGE CORP. (AGM) is a small-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on James P. O'Shaughnessy changed from 75% to 100% 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: Federal Agricultural Mortgage Corporation (Farmer Mac) provides a secondary market for a range of loans made to borrowers in rural America. The Company's segments include Farm & Ranch, USDA Guarantees, Rural Utilities, Institutional Credit and Corporate. Its secondary market activities are purchasing eligible loans directly from lenders; providing advances against eligible loans by purchasing obligations secured by those loans; securitizing assets and guaranteeing the payment of principal and interest on the resulting securities that represent interests in, or obligations secured by, pools of eligible loans; and issuing long-term standby purchase commitments (LTSPCs) for eligible loans. The loans eligible for the secondary market provided by Farmer Mac include mortgage loans secured by first liens on agricultural real estate, including part-time farms and rural housing (comprising the assets eligible for the Farm & Ranch line of business).

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 PER SHARE PERSISTENCE: PASS EARNINGS PER SHARE PERSISTENCE: PASS
PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS
RELATIVE STRENGTH: PASS RELATIVE STRENGTH: PASS

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

Since its inception, Validea's strategy based on James P. O'Shaughnessy has returned 253.48% vs. 194.37% for the S&P 500. For more details on this strategy, click here

About James P. O'Shaughnessy: Research guru and money manager James O'Shaughnessy forced many professional and amateur investors alike to rethink their investment beliefs when he published his 1996 bestseller, What Works on Wall Street. O'Shaughnessy back-tested 44 years of stock market data from the comprehensive Standard & Poor's Compustat database to find out which quantitative strategies have worked over the years and which haven't. To the surprise of many, he concluded that price/earnings ratios aren't the best indicator of a stock's value, and that small-company stocks, contrary to popular wisdom, don't as a group have an edge on large-company stocks. Today O'Shaughnessy is the Chief Investment Officer of O'Shaughnessy Asset Management.

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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