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Validea John Neff Strategy Daily Upgrade Report - 5/29/2019

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.

CNB FINANCIAL CORP (CCNE) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on John Neff changed from 42% 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: CNB Financial Corporation is a financial holding company. The Company is the holding company of CNB Bank (the Bank); CNB Securities Corporation, which maintains investments in debt and equity securities; CNB Insurance Agency, which provides for the sale of nonproprietary annuities and other insurance products, and Holiday Financial Services Corporation, which offers small balance unsecured loans and secured loans, primarily collateralized by automobiles and equipment. The Bank is a full service bank engaging in a range of banking activities and services for individual, business, governmental and institutional customers. The Bank's Wealth & Asset Management Services division offers a range of client services. The Bank's activities include checking, savings and time deposit accounts; real estate loans, commercial loans, industrial loans, residential loans and consumer loans, and other specialized financial services.

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: PASS
EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL
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

CREDICORP LTD. (USA) (BAP) is a large-cap value stock in the Regional Banks industry. The rating according to our strategy based on John Neff changed from 58% to 77% 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: Credicorp Ltd. is a financial services holding company in Peru. The Company has four operating segments based on its products and services, which include banking, insurance, pension funds and investment banking. Its operating subsidiaries include Banco de Credito del Peru; Atlantic Security Bank, which it holds through Atlantic Security Holding Corporation; El Pacifico-Peruano Suiza Compania de Seguros y Reaseguros (Grupo Pacifico); Prima AFP S.A., and Credicorp Capital Ltd. (Credicorp Capital). Its banking business is focused on commercial and consumer loans, credit facilities, deposits, current accounts and credit cards. The Company conducts its insurance business through Grupo Pacifico. It conducts all of its pension fund activities through its private pension fund administrator Prima AFP S.A. The investment banking business units are grouped under Credicorp Capital, which carries its business under asset management, sales and trading, and corporate finance business lines.

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: PASS P/E RATIO: FAIL
EPS GROWTH: PASS EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL 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: FAIL
EPS PERSISTENCE: PASS EPS PERSISTENCE: FAIL

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

FIRST BANCORP INC (FNLC) 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: The First Bancorp, Inc. is the bank holding company of First National Bank (the Bank). The Bank offers a range of financial services to individuals and companies in coastal Maine. The Company, through First Advisors, a division of the Bank, offers a range of private banking, financial planning, investment management and trust services to individuals, businesses, non-profit organizations and municipalities of various asset sizes. The Bank also offers automated teller machine (ATM) processing services. The Bank offers a range of loans, such as commercial loans, including real estate loans, construction loans and other loans; municipal loans; residential loans, including term loans and construction loans; home equity line of credit, and consumer loans. The Bank offers various deposits, such as demand deposits, negotiable order of withdrawal (NOW) accounts, money market accounts, savings and certificates of deposits.

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: PASS P/E RATIO: FAIL P/E RATIO: FAIL
EPS GROWTH: PASS EPS GROWTH: PASS EPS GROWTH: PASS
FUTURE EPS GROWTH: FAIL FUTURE EPS GROWTH: PASS FUTURE EPS GROWTH: FAIL
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: FAIL FREE CASH FLOW: PASS
EPS PERSISTENCE: PASS EPS PERSISTENCE: FAIL EPS PERSISTENCE: PASS

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

H&E EQUIPMENT SERVICES, INC. (HEES) is a small-cap value stock in the Rental & Leasing industry. The rating according to our strategy based on John Neff changed from 60% to 79% 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: H&E Equipment Services, Inc. is an integrated equipment services company. The Company is focused on heavy construction and industrial equipment. As of December 31, 2016, the Company rented, sold and provided parts and services support for four core categories of specialized equipment: hi-lift or aerial work platform equipment; cranes; earthmoving equipment, and industrial lift trucks. The Company's principal business activities include equipment rentals; new equipment sales; used equipment sales; parts sales, and repair and maintenance services. As of February 16, 2017, the Company had 78 facilities located throughout the West Coast, Intermountain, Southwest, Gulf Coast, Southeast and Mid-Atlantic regions of the United States. The Company rents its heavy construction and industrial equipment to its customers on a daily, weekly and monthly basis. The Company sells new heavy construction and industrial equipment. The Company is a distributor of Grove and Manitowoc crane equipment.

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

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

PENNYMAC FINANCIAL SERVICES INC (PFSI) is a small-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on John Neff changed from 60% to 79% 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: PennyMac Financial Services, Inc. is a specialty financial services firm. The Company conducts business in three segments: production, servicing (together, production and servicing comprise its mortgage banking activities) and investment management. Production segment performs mortgage loan origination, acquisition and sale activities. Servicing segment performs mortgage loan servicing for its own account and for others, including for PennyMac Mortgage Investment Trust (PMT). Investment management segment represents its investment management activities, which include the activities associated with investment asset acquisitions and dispositions, such as sourcing, due diligence, negotiation and settlement; managing correspondent production activities for PMT; and managing the acquired investments for PMT. Its primary subsidiaries are: PNMAC Capital Management, LLC, PennyMac Loan Services, LLC and PNMAC Opportunity Fund Associates, LLC.

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

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

BG STAFFING INC (BGSF) is a small-cap value stock in the Business Services industry. The rating according to our strategy based on John Neff changed from 60% to 79% 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: BG Staffing, Inc. (BG Staffing) is a provider of temporary staffing services. The Company provides temporary workers to a range of customers that are seeking to match their workforce requirements to their business needs. Its customers operate across a diverse set of industries. The Company's operations are organized into three segments: Commercial, Multifamily and Professional. The Company's temporary staffing services consist of on-demand or short-term staffing assignments, contract staffing, and on-site management administration. Short-term staffing services assist employers in dealing with employee demands caused by such factors as seasonality, fluctuations in customer demand, vacations, illnesses, parental leave, and special projects. The Company's contract staffing services place temporary employees with customers for time-periods of more than three months or for an indefinite time period.

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

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 130.90% vs. 152.81% 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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