Markets

Validea Motley Fool Strategy Daily Upgrade Report - 11/8/2019

The following are today's upgrades for Validea's Small-Cap Growth Investor model based on the published strategy of Motley Fool. This strategy looks for small cap growth stocks with solid fundamentals and strong price performance.

SARATOGA INVESTMENT CORP (SAR) is a small-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Motley Fool changed from 63% to 76% 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: Saratoga Investment Corp. is a specialty finance company. The Company is an externally managed, closed-end, non-diversified management investment company. The Company invests primarily in leveraged loans and mezzanine debt issued by private middle-market companies in the United States. Its investment objective is to generate current income and, to a lesser extent, capital appreciation from its investments. It purchases mezzanine debt and makes equity investments in middle market companies. It may invest in other investments, such as investments in distressed debt, including securities of companies in bankruptcy, foreign debt, private equity, securities of public companies that are not thinly traded and structured finance vehicles, such as collateralized loan obligation funds. Its leveraged loan portfolio consists primarily of first lien and second lien term loans. The Company's investment activities are externally managed and advised by Saratoga Investment Advisors, LLC.

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.

PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL

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

NICOLET BANKSHARES INC (NCBS) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Motley Fool changed from 67% 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: Nicolet Bankshares, Inc. is a bank holding company. The Company conducts operations through its subsidiary, Nicolet National Bank (the Bank), which is a commercial bank. The Company also owns investment advisory firms, Brookfield Investment Partners, LLC, which provides investment strategy and transactional services to select community banks, and Nicolet Advisory Services, LLC, which conducts brokerage and financial advisory services primarily to individual consumers. The Bank is a service community bank, which offers traditional banking products and services, and wealth management products and services to businesses and individuals. The Company's principal business is banking, consisting of lending and deposit gathering, as well as ancillary banking-related products and services, to businesses and individuals of the communities it serves, and the operational support to deliver, fund and manage banking products and services.

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.

PROFIT MARGIN: PASS PROFIT MARGIN: PASS
RELATIVE STRENGTH: FAIL RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS CASH AND CASH EQUIVALENTS: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL
"THE FOOL RATIO" (P/E TO GROWTH): FAIL AVERAGE SHARES OUTSTANDING: PASS
AVERAGE SHARES OUTSTANDING: PASS SALES: PASS
SALES: PASS DAILY DOLLAR VOLUME: PASS
DAILY DOLLAR VOLUME: PASS PRICE: PASS
PRICE: PASS INCOME TAX PERCENTAGE: PASS
INCOME TAX PERCENTAGE: FAIL

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

ZUMIEZ INC. (ZUMZ) is a small-cap growth stock in the Retail (Apparel) industry. The rating according to our strategy based on Motley Fool changed from 69% to 76% 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: Zumiez Inc., including its subsidiaries, is a specialty retailer of apparel, footwear, accessories and hardgoods for young men and women through the fashion, music, art and culture of action sports, streetwear and other lifestyles. The Company operates under the names Zumiez, Blue Tomato and Fast Times. Additionally, it operates e-commerce Websites at www.zumiez.com, www.blue-tomato.com and www.fasttimes.com.au. It offers various categories of shoes, such as skate shoes, casual shoes, high tops, sandals, slip ons, runners, boots and shoe accessories, such as socks. It also offers flannels, baseball tees, hoodies, baseball hats, windbreakers, shirts, jackets, jerseys, sweaters and tanks, among others. For women, it offers t-shirts, tank tops, hoodies and sweatshirts, cardigans, jackets, skirts, jeans, joggers, leggings and dresses, among others. It provides various accessories, including watches, sunglasses, bracelets, earrings, rings, beanies, hats, belts, wallets and phone accessories

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.

PROFIT MARGIN: PASS PROFIT MARGIN: PASS PROFIT MARGIN: FAIL
RELATIVE STRENGTH: FAIL RELATIVE STRENGTH: FAIL RELATIVE STRENGTH: PASS
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS INSIDER HOLDINGS: PASS INSIDER HOLDINGS: PASS
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
PROFIT MARGIN CONSISTENCY: PASS PROFIT MARGIN CONSISTENCY: PASS PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL R&D AS A PERCENTAGE OF SALES: NEUTRAL R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS CASH AND CASH EQUIVALENTS: PASS CASH AND CASH EQUIVALENTS: PASS
ACCOUNTS RECEIVABLE TO SALES: PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL INVENTORY TO SALES: PASS
"THE FOOL RATIO" (P/E TO GROWTH): FAIL AVERAGE SHARES OUTSTANDING: PASS ACCOUNTS RECEIVABLE TO SALES: PASS
AVERAGE SHARES OUTSTANDING: PASS SALES: PASS LONG TERM DEBT/EQUITY RATIO: PASS
SALES: PASS DAILY DOLLAR VOLUME: PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL
DAILY DOLLAR VOLUME: PASS PRICE: PASS AVERAGE SHARES OUTSTANDING: PASS
PRICE: PASS INCOME TAX PERCENTAGE: PASS SALES: FAIL
INCOME TAX PERCENTAGE: FAIL DAILY DOLLAR VOLUME: PASS
PRICE: PASS
INCOME TAX PERCENTAGE: PASS

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

Since its inception, Validea's strategy based on Motley Fool has returned 535.85% vs. 210.35% for the S&P 500. For more details on this strategy, click here

About Motley Fool: Brothers David and Tom Gardner often wear funny hats in public appearances, but they're hardly fools -- at least not the kind whose advice you should readily dismiss. The Gardners are the founders of the popular Motley Fool web site, which offers frank and often irreverent commentary on investing, the stock market, and personal finance. The Gardners' "Fool" really is a multi-media endeavor, offering not only its web content but also several books written by the brothers, a weekly syndicated newspaper column, and subscription newsletter services.

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.