Markets

Validea Motley Fool Strategy Daily Upgrade Report - 4/23/2019

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.

SPIRIT OF TEXAS BANCSHARES INC (STXB) is a small-cap growth stock in the Regional Banks industry. The rating according to our strategy based on Motley Fool changed from 59% to 85% 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: Spirit of Texas Bancshares, Inc. is a bank holding company. Through its subsidiary, Spirit of Texas Bank SSB, offers a range of commercial and retail banking services. The Company primarily operates through Community Banking. The Company delivers relationship-driven financial services to small and medium sized businesses, as well as individuals. It offers a range of loans, including commercial and industrial loans, small business administration (SBA) loans, construction, land and development real estate loans, commercial real estate loans (including multifamily) and municipal loans. It also offer various loans and leases to individuals and professionals including residential real estate loans, home equity loans, installment loans, personal lines of credit, and standby letters of credit.

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: PASS
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
"THE FOOL RATIO" (P/E TO GROWTH): PASS
AVERAGE SHARES OUTSTANDING: PASS
SALES: PASS
DAILY DOLLAR VOLUME: FAIL
PRICE: PASS
INCOME TAX PERCENTAGE: FAIL

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

ENDAVA PLC - ADR (DAVA) is a small-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Motley Fool changed from 73% 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: Endava plc, formerly Endava Limited, is a United Kingdom-based company that provides technology services. The Company provides its services in three solution areas, such as Digital Evolution, Agile Transformation and Automation. Its service offerings include strategy, creative and user experience, insights through data, mobile and Internet of Things (IoT), architecture, smart automation, software engineering, test automation and engineering, continuous delivery, cloud, applications management and smart desk. It designs and supports digital solutions that enable its clients' businesses to compete and provide a user experience to their users. Agile Transformation allows its clients to release products to market through iterations of technology solutions. It offers end-to-end application management services that focus on improvement of systems. It operates across Bulgaria, Colombia, Germany, Ireland, Denmark, Moldova, Romania, Netherlands, Serbia, United States, and United Kingdom.

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

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

OMEGA FLEX, INC. (OFLX) is a small-cap growth stock in the Misc. Fabricated Products 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: Omega Flex, Inc. is a manufacturer of flexible metal hose. The Company is engaged in a range of different markets, including construction, manufacturing, transportation, petrochemical, pharmaceutical and other industries. It operates through manufacture and sale of flexible metal hose and accessories segment. Its products are concentrated in residential and commercial construction, and general industrial markets. Its primary product, flexible gas piping, is used for gas piping within residential and commercial buildings. Its TracPipe and TracPipe CounterStrike flexible gas piping, along with its fittings, which are distributed under AutoSnap and AutoFlare names. Its products are manufactured at its Exton, Pennsylvania facilities in the United States, and in Banbury, Oxfordshire in the United Kingdom. It has sales across all industries are generated through independent outside sales organizations, such as sales representatives, wholesalers and distributors or a combination of both.

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: PASS
RELATIVE STRENGTH: FAIL RELATIVE STRENGTH: PASS RELATIVE STRENGTH: FAIL
COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: PASS COMPARE SALES AND EPS GROWTH TO THE SAME PERIOD LAST YEAR: FAIL
INSIDER HOLDINGS: PASS INSIDER HOLDINGS: FAIL 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: FAIL PROFIT MARGIN CONSISTENCY: PASS
R&D AS A PERCENTAGE OF SALES: NEUTRAL R&D AS A PERCENTAGE OF SALES: PASS R&D AS A PERCENTAGE OF SALES: NEUTRAL
CASH AND CASH EQUIVALENTS: PASS CASH AND CASH EQUIVALENTS: FAIL CASH AND CASH EQUIVALENTS: PASS
"THE FOOL RATIO" (P/E TO GROWTH): PASS INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS
AVERAGE SHARES OUTSTANDING: PASS ACCOUNTS RECEIVABLE TO SALES: PASS ACCOUNTS RECEIVABLE TO SALES: PASS
SALES: PASS LONG TERM DEBT/EQUITY RATIO: PASS LONG TERM DEBT/EQUITY RATIO: PASS
DAILY DOLLAR VOLUME: FAIL "THE FOOL RATIO" (P/E TO GROWTH): PASS "THE FOOL RATIO" (P/E TO GROWTH): FAIL
PRICE: PASS AVERAGE SHARES OUTSTANDING: PASS AVERAGE SHARES OUTSTANDING: PASS
INCOME TAX PERCENTAGE: FAIL SALES: PASS SALES: PASS
DAILY DOLLAR VOLUME: PASS DAILY DOLLAR VOLUME: PASS
PRICE: PASS PRICE: PASS
INCOME TAX PERCENTAGE: 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 507.68% vs. 192.53% 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.