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Validea Joseph Piotroski Strategy Daily Upgrade Report - 12/25/2018

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The following are today's upgrades for Validea's Book/Market Investor model based on the published strategy of Joseph Piotroski . This value-quant strategy screens for high book-to-market stocks, and then separates out financially sound firms by looking at a host of improving financial criteria.

INGLES MARKETS, INCORPORATED ( IMKTA ) is a small-cap value stock in the Retail (Grocery) industry. The rating according to our strategy based on Joseph Piotroski changed from 0% to 80% 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: Ingles Markets, Incorporated (Ingles) is a supermarket chain in the southeast United States. The Company's segments include retail grocery and other. Its other segment consists of fluid dairy operations and shopping center rentals. As of September 24, 2016, the Company operated 201 supermarkets in Georgia, North Carolina, South Carolina, Tennessee, Virginia and Alabama. The Company locates its supermarkets primarily in suburban areas, small towns and rural communities. Ingles supermarkets offer customers a range of food products, including grocery, meat and dairy products, produce, frozen foods and other perishables and non-food products. Its non-food products include fuel centers, pharmacies, health and beauty care products and general merchandise. The Company focuses on selling products to its customers through the development of organic products, bakery departments and prepared foods, including delicatessen sections.

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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: FAIL

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

CVR REFINING LP ( CVRR ) is a small-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Joseph Piotroski changed from 0% to 80% 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 Refining, LP is an independent downstream energy limited partnership with refining and related logistics assets that operates in the mid-continent region. The Company is a petroleum refiner. It owned and operated a complex full coking medium-sour crude oil refinery in Coffeyville, Kansas with a rated capacity of 115,000 barrels per calendar day (bpcd) and a complex crude oil refinery in Wynnewood, Oklahoma with a rated capacity of 70,000 bpcd capable of processing 20,000 bpcd of light sour crude oils (within its rated capacity of 70,000 bpcd), as of December 31, 2016. In addition, it also controlled and operated supporting logistics assets, including approximately 340 miles of active owned and leased pipelines, approximately 150 crude oil transports, a network of crude oil gathering tank farms, approximately 6.4 million barrels of owned and leased crude oil storage and over 4.5 million barrels of combined refined products and feedstocks storage capacity, as of December 31, 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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS FAIL
CHANGE IN CURRENT RATIO: FAIL
CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS

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

Since its inception, Validea's strategy based on Joseph Piotroski has returned 128.86% vs. 105.05% for the S&P 500. For more details on this strategy, click here

About Joseph Piotroski : Piotroski isn't your typical Wall Street big shot. In fact, he's not even a professional investor. He's a good old numbers-crunching accountant and college professor. But in 2000, shortly after he started teaching at the University of Chicago's Graduate School of Business, Piotroski published a groundbreaking paper in the Journal of Accounting Research entitled "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers". In it, Piotroski laid out an accounting-based stock-selection/shorting method that produced a 23 percent average annual back-tested return from 1976 through 1996 -- more than double the S&P 500's gain during that time. Piotroski's findings were reported in major financial publiations like SmartMoney. Today, he teaches accounting at Stanford University's Graduate School of Business.

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.


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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