Markets

Validea Joseph Piotroski Strategy Daily Upgrade Report - 9/27/2019

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.

PARSLEY ENERGY INC (PE) is a mid-cap growth stock in the Oil & Gas - Integrated 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: Parsley Energy, Inc. is a holding company. The Company is an independent oil and natural gas company. The Company focuses on the acquisition, development and exploitation of unconventional oil and natural gas reserves in the Permian Basin. The Permian Basin is located in West Texas and Southeastern New Mexico and includes three primary sub-areas: the Midland Basin, the Central Basin Platform and the Delaware Basin. The Company's properties are primarily located in the Midland and Delaware Basins, where it focuses on horizontal development drilling and target various stacked pay intervals in the Spraberry, Wolfcamp, Upper Pennsylvanian (Cline) and Atoka shales. As of December 31, 2016, it had an average working interest of 87% in 166 gross (146.7 net) horizontal wells, of which 151 gross (132.4 net) are in the Midland Basin. As of December 31, 2016, the Company operated seven horizontal rigs and three vertical drilling rigs.

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: FAIL
CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS

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

FLUENT INC (FLNT) is a small-cap growth stock in the Computer Services 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: Fluent, Inc., formerly Cogint, Inc., is a data-driven performance marketing company. The Company operates through two segments: Information Services and Performance Marketing. Information Services segment provides solutions to organizations within the risk management and consumer marketing industries. Performance Marketing Segment provides solutions to help brands, advertisers and marketers to find customers in business-to-consumer (B2C) vertical including internet and telecommunications, financial services, health and wellness, consumer packaged goods, careers and education, and retail and entertainment. The Company's solutions include data acquisition solutions which includes connect and reconnect. Audience solutions which include performancenow and audience now. Mobile user acquisition solutions include mobilenow.

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

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

SINA CORP (SINA) is a mid-cap growth stock in the Computer Services 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: Sina Corporation is an online media company serving China and the global Chinese communities. The Company's digital media network of SINA.com (portal), SINA mobile (mobile portal and mobile applications) and Weibo (social media) enables Internet users to access professional media and user generated content (UGCs) in multi-media formats from personal computers and mobile devices, and share their interests with friends and acquaintances. The Company's segments include Portal advertising, Weibo Corporation (Weibo) and Others. SINA.com is an online media property, which provides professional digital contents to users and offers online brand advertising and marketing solutions to customers. Weibo is a social media platform for people to create, distribute and discover Chinese-language content. It offers eReading, a shop for book reviews, as well as complimentary and fee-based online book reading. It offers SINA Blog, a Website in China for bloggers to publish and read original writings.

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 BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: FAIL CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: FAIL
CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: 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 131.13% vs. 160.07% 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.

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