Markets
VRA

Validea Joseph Piotroski Strategy Daily Upgrade Report - 3/15/2018

Headlines that say Stocks, Finance, Markets, Business and World.
Credit: Shutterstock photo

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.

NL INDUSTRIES INC ( NL ) is a small-cap value stock in the Electronic Instr. & Controls 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: NL Industries, Inc. is a holding company. The Company operates in the component products industry through its subsidiary, CompX International Inc. (CompX). The Company operates in the chemicals industry through its non-controlling interest in Kronos Worldwide, Inc. (Kronos). The Company, through Compx, manufactures engineered components that are sold to a range of industries, including recreational transportation (including boats), postal, office and institutional furniture, cabinetry, tool storage, healthcare, gas stations and vending equipment. Kronos is a global producer and marketer of value-added titanium dioxide pigments (TiO2), a base industrial product used in imparting whiteness, brightness and opacity to a range of customer applications and end use markets, including coatings, plastics, paper, inks, food, cosmetics, and other industrial and consumer products. Kronos has production facilities in Europe and North America.

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

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

VERA BRADLEY, INC. ( VRA ) is a small-cap growth stock in the Apparel/Accessories 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: Vera Bradley, Inc. (Vera Bradley) is a designer of women's handbags, accessories, luggage and travel items, eyewear, and stationery and gifts. The Company's segments include Direct and Indirect. The Company offers various products, including bags, travel, home and accessories. Its accessories include fashion accessories, such as wallets, eyeglass cases, jewelry, and scarves and various technology accessories. The Direct business consists of sales of Vera Bradley products through factory outlet stores in the United States, verabradley.com, direct-to-consumer eBay sales and its annual outlet sale in Fort Wayne, Indiana. As of January 28, 2017, the Indirect business consisted of sales of Vera Bradley products to approximately 2,600 specialty retail locations, substantially all of which were located in the United States, as well as department stores, national accounts, third party e-commerce sites, the Company's wholesale customer in Japan, and third-party inventory liquidators.

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: FAIL
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: PASS
CHANGE IN ASSET TURNOVER: FAIL

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 180.13% vs. 139.80% 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.

In This Story

VRA NL

Other Topics

Stocks

Latest Markets Videos