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Validea John Neff Strategy Daily Upgrade Report - 11/16/2019

The following are today's upgrades for Validea's Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.

MASTERCRAFT BOAT HOLDINGS INC (MCFT) is a small-cap value stock in the Recreational Products industry. The rating according to our strategy based on John Neff changed from 62% to 81% 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: MasterCraft Boat Holdings, Inc., formerly MCBC Holdings, Inc., is a holding company. The Company through its subsidiaries, is a designer, manufacturer and marketer of recreational powerboats. It operates through two segments: MasterCraft and NauticStar. Its subsidiaries include MasterCraft Boat Company, LLC; Nautic Star, LLC; NS Transport, LLC; MasterCraft Services, Inc.; MasterCraft Parts, Ltd.; and MasterCraft International Sales Administration, Inc. Its MasterCraft product brand consists of recreational performance boats primarily used for water skiing, wakeboarding, wake surfing, and general recreational boating. The NauticStar product brand consists of outboard boats primarily used for salt water fishing, and general recreational boating. It distributes the MasterCraft product brand and the NauticStar product brand through its dealer network.

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.

P/E RATIO: FAIL
EPS GROWTH: PASS
FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS
TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS

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

BROOKLINE BANCORP, INC. (BRKL) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on John Neff changed from 62% to 81% 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: Brookline Bancorp, Inc. operates as a multi-bank holding company for Brookline Bank and its subsidiaries; Bank Rhode Island (BankRI) and its subsidiaries; First Ipswich Bank (First Ipswich) and its subsidiaries, and Brookline Securities Corp. As a commercially focused financial institution with 50 full-service banking offices throughout greater Boston, the north shore of Massachusetts and Rhode Island, the Company, through Brookline Bank, BankRI and First Ipswich (individually and collectively the Banks), offered a range of commercial, business and retail banking services, including cash management products, online banking services, consumer and residential loans and investment services throughout central New England, as of December 31, 2016. The Company also provides specialty equipment financing through its subsidiaries, Eastern Funding LLC and Macrolease Corporation.

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.

P/E RATIO: FAIL P/E RATIO: FAIL
EPS GROWTH: PASS EPS GROWTH: PASS
FUTURE EPS GROWTH: PASS FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS SALES GROWTH: PASS
TOTAL RETURN/PE: PASS TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS EPS PERSISTENCE: PASS

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

GUARANTY BANCSHARES, INC. (GNTY) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on John Neff changed from 62% to 81% 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: Guaranty Bancshares, Inc. is the holding company for Guaranty Bank & Trust (Guaranty). Guaranty offers various solutions, such as personal banking, business banking, mortgage and wealth management. Its personal banking solutions include checking accounts, which include compare accounts, green checking, student checking, choice checking, guaranty interest checking, order checks and debit cards; savings accounts, which include regular savings, premier money market, certificate of deposit, individual retirement account (IRA) options and health savings account, and online banking, which includes money desktop and e-statements. Guaranty offers various loans, including line of credit, small business administration loans and real estate loans. Guaranty also offers mobile banking solutions, mortgage warehouse lending solutions and treasury management solutions. It has approximately 30 bank locations in over 20 Texas communities.

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.

P/E RATIO: FAIL P/E RATIO: FAIL P/E RATIO: FAIL
EPS GROWTH: PASS EPS GROWTH: PASS EPS GROWTH: PASS
FUTURE EPS GROWTH: PASS FUTURE EPS GROWTH: PASS FUTURE EPS GROWTH: PASS
SALES GROWTH: PASS SALES GROWTH: PASS SALES GROWTH: PASS
TOTAL RETURN/PE: PASS TOTAL RETURN/PE: PASS TOTAL RETURN/PE: PASS
FREE CASH FLOW: PASS FREE CASH FLOW: PASS FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS EPS PERSISTENCE: PASS EPS PERSISTENCE: PASS

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

Since its inception, Validea's strategy based on John Neff has returned 323.73% vs. 181.51% for the S&P 500. For more details on this strategy, click here

About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.

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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