The following are today's upgrades for Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
EDUCATIONAL DEVELOPMENT CORPORATION (EDUC) is a small-cap growth stock in the Printing & Publishing industry. The rating according to our strategy based on Kenneth Fisher changed from 60% 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: Educational Development Corporation (EDC) is a publisher of the line of educational children's books produced in the United Kingdom by Usborne Publishing Limited (Usborne). The Company also owns Kane Miller Book Publishers. The Company sells books through two segments: Home Business Division (Usborne Books & More or UBAM) and Publishing Division (EDC Publishing). The UBAM Division distributes books nationwide through independent consultants, who hold book showings in individual homes, through social media, book fairs, direct sales and Internet sales. The Publishing Division markets books to bookstores (including national chains), toy stores, specialty stores, museums and other retail outlets throughout the country. The Company offers over 2,000 different titles, which include touchy-feely board books, activity and flashcards, adventure and search books, art books, sticker books and foreign language books.
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.
|TOTAL DEBT/EQUITY RATIO:||PASS|
|LONG-TERM EPS GROWTH RATE:||PASS|
|FREE CASH PER SHARE:||PASS|
|THREE YEAR AVERAGE NET PROFIT MARGIN:||PASS|
Detailed Analysis of EDUCATIONAL DEVELOPMENT CORPORATION
About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
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
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