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.
DISH NETWORK CORP (DISH) is a large-cap value stock in the Broadcasting & Cable TV industry. The rating according to our strategy based on Joseph Piotroski changed from 0% to 90% 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: DISH Network Corporation is a holding company. The Company's business segments include Pay-TV and Wireless. Its Wireless business segment consists of two business units, Retail Wireless and 5G Network Deployment. The Pay-TV segment offers pay-TV services under the DISH brand and the SLING brand. The DISH branded pay-TV service consists of direct broadcast satellite (DBS) and Fixed Satellite Service (FSS) spectrum, its owned and leased satellites, broadcast operations, customer service facilities, a leased fiber optic network, and in-home service. The SLING branded pay-TV services consist of, multichannel, live-linear streaming over-the-top (OTT) Internet-based domestic, international, and Latino video programming services. The Wireless-Retail Wireless unit offers nationwide prepaid and postpaid retail wireless services to subscribers under its Boost Mobile and Ting Mobile brands. The Wireless-5G Network Deployment unit has invested to acquire certain wireless spectrum licenses.
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: | FAIL |
| CHANGE IN GROSS MARGIN: | PASS |
| CHANGE IN ASSET TURNOVER: | PASS |
Detailed Analysis of DISH NETWORK CORP
TREEHOUSE FOODS INC. (THS) is a mid-cap growth stock in the Food Processing 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: TreeHouse Foods, Inc. is a manufacturer and distributor of private label packaged foods and beverages in North America. The Company's segments include Meal Preparation and Snacking & Beverages. The Company's product portfolio includes snacking, beverages, and meal preparation products, available in shelf stable, refrigerated, frozen, and fresh formats. It offers clean label, organic, and preservative-free ingredients across its entire portfolio. Its Meal Preparation segments includes center of the store grocery items and main course meal items in shelf stable and refrigerated formats for retail, food-away-from-home, industrial, ingredient, export and co-pack customers. Its Snacking & Beverages produces and sells a comprehensive portfolio of sweet and savory baked food items and beverages and drink mixes for retail, food-away-from-home and co-pack customers in shelf stable, refrigerated and frozen formats.
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: | FAIL |
| CHANGE IN SHARES OUTSTANDING: | PASS |
| CHANGE IN GROSS MARGIN: | PASS |
| CHANGE IN ASSET TURNOVER: | FAIL |
Detailed Analysis of TREEHOUSE FOODS INC.
RESOLUTE FOREST PRODUCTS INC (RFP) is a small-cap value stock in the Paper & Paper Products industry. The rating according to our strategy based on Joseph Piotroski changed from 70% to 90% 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: Resolute Forest Products Inc. owns and operates in the forest products industry that offers a range of forest products, including market pulp, tissue, wood products, papers and paper calculation tools. The Company produces lumber in the United States and Canada and is a producer of wood products east of the Canadian Rockies. The Company's segments include market pulp, tissue, wood products, and paper. In addition, the Company is a producer of uncoated mechanical papers and pulp in North America. The Company is also a producer of newsprint and tissue producer. The Company owns and operates approximately 40 facilities, as well as power generation assets, in the United States and Canada.
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: | FAIL |
| CHANGE IN SHARES OUTSTANDING: | PASS |
| CHANGE IN GROSS MARGIN: | PASS |
| CHANGE IN ASSET TURNOVER: | PASS |
Detailed Analysis of RESOLUTE FOREST PRODUCTS INC
AGNC INVESTMENT CORP (AGNC) is a mid-cap value stock in the Real Estate Operations industry. The rating according to our strategy based on Joseph Piotroski changed from 50% 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: AGNC Investment Corp. is a real estate investment trust (REIT). The Company invests primarily in Agency residential mortgage-backed securities (Agency RMBS) for which the principal and interest payments are guaranteed by the United States Government-sponsored enterprise (GSE) or the United States Government agency. It also invests in other types of mortgage and mortgage-related securities, such as credit risk transfer (CRT) securities and non-Agency residential mortgage-backed securities (non-Agency RMBS) and commercial mortgage-backed securities (CMBS), where repayment of principal and interest is not guaranteed by the GSE or the United States Government agency, and other assets related to the housing, mortgage, or real estate markets. The Company funds its investments primarily through collateralized borrowings structured as repurchase agreements.
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: | FAIL |
| CHANGE IN SHARES OUTSTANDING: | PASS |
| CHANGE IN GROSS MARGIN: | PASS |
| CHANGE IN ASSET TURNOVER: | FAIL |
Detailed Analysis of AGNC INVESTMENT CORP
More details on Validea's Joseph Piotroski strategy
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 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.
