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Validea Peter Lynch Strategy Daily Upgrade Report - 1/20/2022

The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.

GIBRALTAR INDUSTRIES INC (ROCK) is a small-cap growth stock in the Constr. - Supplies & Fixtures industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% 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: Gibraltar Industries, Inc., incorporated on September 17, 1993, manufacturer and provider of products and services for the renewable energy, conservation, residential and infrastructure markets. The Company's segments include Residential Products, Renewable Energy and Conservation and Infrastructure Products. The Company serves customers primarily in North America including renewable energy (solar) developers, institutional and commercial growers of food and plants, home improvement retailers, wholesalers, distributors, and contractors. The Company provides solutions to customers: racking, foundation, and electrical systems for photovoltaic (PV) solar systems, commercial growing greenhouses and processing extraction technology for biologically grown food, and other plants; roof-related ventilation to support healthy home environments; postal and parcel storage for home and retail sites; and structural bearings and expansion joints for bridges and other transportation structures.

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.

P/E/GROWTH RATIO:PASS
SALES AND P/E RATIO:PASS
INVENTORY TO SALES:PASS
EPS GROWTH RATE:PASS
TOTAL DEBT/EQUITY RATIO:PASS
FREE CASH FLOW:NEUTRAL
NET CASH POSITION:NEUTRAL

Detailed Analysis of GIBRALTAR INDUSTRIES INC

Full Guru Analysis for ROCK

Full Factor Report for ROCK

HIMAX TECHNOLOGIES, INC. (ADR) (HIMX) is a mid-cap value stock in the Semiconductors industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% 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: Himax Technologies, Inc. is a fabless semiconductor solution provider. The Company is engaged in display driver integrated circuits (IC) and timing controllers used in televisions, laptops, monitors, mobile phones, tablets, digital cameras, car navigation and other consumer electronics devices. The Company operates through two segments: Driver IC and Non-driver products. In addition, the Company designs and provides controllers for touch sensor displays, liquid crystal on silicon micro-displays used in palm-size projectors and head-mounted displays, light-emitting diode driver ICs, power management ICs, scaler products for monitors and projectors, video processing IC solutions and silicon IPs. It also offers digital camera solutions, including complementary metal-oxide-semiconductor image sensors and wafer level optics, which are used in a range of applications, such as mobile phone, tablet, laptop, televisions, personal computer camera, automobile, security and medical devices.

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.

INVENTORY TO SALES:PASS
YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO:PASS
EARNINGS PER SHARE:PASS
TOTAL DEBT/EQUITY RATIO:PASS
FREE CASH FLOW:NEUTRAL
NET CASH POSITION:NEUTRAL

Detailed Analysis of HIMAX TECHNOLOGIES, INC. (ADR)

Full Guru Analysis for HIMX

Full Factor Report for HIMX

SIERRA BANCORP (BSRR) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% 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: Sierra Bancorp is a bank holding company for Bank of the Sierra (the Bank). The Bank is a community-centric regional bank, which offers a range of retail and commercial banking services through full-service branches located within the counties of Tulare, Kern, Kings, Fresno, Ventura, San Luis Obispo and Santa Barbara. It also maintains an online branch and provides specialized lending services through an agricultural credit center. Its Internet branch provides the ability to open deposit accounts online; an online banking option with bill-pay and mobile banking capabilities, including mobile check deposit; a customer service center that is accessible by toll-free telephone during business hours, and an automated telephone banking system. It offers a range of other banking products and services to complement and support its lending and deposit products, including remote deposit capture and automated payroll services for business customers.

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.

YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO:PASS
EARNINGS PER SHARE:PASS
TOTAL DEBT/EQUITY RATIO:NEUTRAL
EQUITY/ASSETS RATIO:PASS
RETURN ON ASSETS:PASS
FREE CASH FLOW:NEUTRAL
NET CASH POSITION:NEUTRAL

Detailed Analysis of SIERRA BANCORP

Full Guru Analysis for BSRR

Full Factor Report for BSRR

PREFERRED BANK (PFBC) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 80% to 100% 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: Preferred Bank is a commercial bank. The Bank provides a range of deposit and loan products and services. The Bank provides deposit services as well as real estate financing, commercial loans and trade finance to small and mid-sized businesses, entrepreneurs, real estate developers, professionals and individuals. The Bank offers various services, such as personal banking, business banking and treasury management. The Bank's loan portfolio includes real estate mortgage loans, real estate construction loans, commercial loans and trade finance. Its real estate mortgage portfolio consists of real estate mini-perm loans, as well as purchased residential mortgages. The Bank offers a range of commercial loan products, including lines of credit for working capital, term loans for capital expenditures and commercial and stand-by letters of credit. Through its branch network, the Bank provides a range of financial services to individuals and companies located primarily in Southern California.

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.

P/E/GROWTH RATIO:PASS
SALES AND P/E RATIO:NEUTRAL
EPS GROWTH RATE:PASS
TOTAL DEBT/EQUITY RATIO:NEUTRAL
EQUITY/ASSETS RATIO:PASS
RETURN ON ASSETS:PASS
FREE CASH FLOW:NEUTRAL
NET CASH POSITION:BONUS PASS

Detailed Analysis of PREFERRED BANK

Full Guru Analysis for PFBC

Full Factor Report for PFBC

FEDERAL SIGNAL CORPORATION (FSS) is a mid-cap growth stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% 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: Federal Signal Corporation designs, manufactures and supplies a suite of products and integrated solutions for municipal, governmental, industrial and commercial customers. The Company operates through two segments: the Environmental Solutions Group and the Safety and Security Systems Group. Its Environmental Solutions Group segment manufactures and supplies a range of street sweeper vehicles, sewer cleaners and vacuum loaders, water blasting equipment, dump truck bodies and trailers. It also manufactures vehicles and equipment in the United States and Canada, which are sold under the Elgin, Vactor, Guzzler, Westech, Jetstream, Crysteel, J-Craft, Duraclass, Rugby and Travis brand names. The Safety and Security Systems Group segment is a manufacturer and supplier of systems and products, including emergency medical services, campuses, military facilities and industrial sites used to protect people and property. Its products are sold under the Federal Signal and Victor brand names.

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.

P/E/GROWTH RATIO:PASS
SALES AND P/E RATIO:PASS
INVENTORY TO SALES:PASS
EPS GROWTH RATE:PASS
TOTAL DEBT/EQUITY RATIO:PASS
FREE CASH FLOW:NEUTRAL
NET CASH POSITION:NEUTRAL

Detailed Analysis of FEDERAL SIGNAL CORPORATION

Full Guru Analysis for FSS

Full Factor Report for FSS

UNITEDHEALTH GROUP INC (UNH) is a large-cap growth stock in the Insurance (Accident & Health) industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% 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: UnitedHealth Group Incorporated is a diversified health care company. The Company operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight and OptumRx. It conducts its operations through two business platforms: health benefits operating under UnitedHealthcare and health services operating under Optum. UnitedHealthcare provides healthcare includes UnitedHealthcare Employer & Individual, UnitedHealthcare Medicare & Retirement, UnitedHealthcare Community & State, and UnitedHealthcare Global businesses. Optum serves the healthcare marketplace, including payers, care providers, employers, governments, life sciences companies and consumers, through its OptumHealth, OptumInsight and OptumRx businesses. OptumHealth focuses on care delivery, care management, wellness and consumer engagement, and health financial services. OptumInsight offers data, analytics, research, consulting, technology and managed services solutions. OptumRx provides an array of pharmacy care 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.

P/E/GROWTH RATIO:PASS
SALES AND P/E RATIO:PASS
EPS GROWTH RATE:PASS
TOTAL DEBT/EQUITY RATIO:NEUTRAL
EQUITY/ASSETS RATIO:PASS
RETURN ON ASSETS:PASS
FREE CASH FLOW:NEUTRAL
NET CASH POSITION:NEUTRAL

Detailed Analysis of UNITEDHEALTH GROUP INC

Full Guru Analysis for UNH

Full Factor Report for UNH

TIMBERLAND BANCORP, INC. (TSBK) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% 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: Timberland Bancorp, Inc. is the holding company for Timberland Savings Bank, SSB (the Bank). The Bank is a community-oriented bank, which offers a range of savings products to its retail customers while concentrating its lending activities on real estate mortgage loans and commercial business loans. The Bank's principal lending activity consists of the origination of loans secured by real estate, including residential construction loans, one- to four-family residential loans, multi-family loans and commercial real estate loans. The Bank also originates commercial business loans and other consumer loans. It originates two types of residential construction loans: custom construction and owner/builder construction loans, and speculative construction loans. It serves consumers and businesses across Grays Harbor, Thurston, Pierce, King, Kitsap and Lewis counties, Washington.

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.

YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO:PASS
EARNINGS PER SHARE:PASS
TOTAL DEBT/EQUITY RATIO:NEUTRAL
EQUITY/ASSETS RATIO:PASS
RETURN ON ASSETS:PASS
FREE CASH FLOW:NEUTRAL
NET CASH POSITION:NEUTRAL

Detailed Analysis of TIMBERLAND BANCORP, INC.

Full Guru Analysis for TSBK

Full Factor Report for TSBK

INTERNET INITIATIVE JAPAN INC. (ADR) (IIJIY) is a mid-cap growth stock in the Computer Services industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% 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: Internet Initiative Japan Inc is a Japan-based company mainly engaged in the development of Internet business. The Company operates in two business segments. The Network Services and System Integration (SI) segment is mainly engaged in the provision of a combination of network services and system integration services, which mainly consist of Internet connection services, wide area network (WAN) services and outsourcing services, as well as the provision of comprehensive solutions. The Automated Teller Machine (ATM) Operation segment is engaged in the operation of bank ATMs and network systems.

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.

P/E/GROWTH RATIO:PASS
SALES AND P/E RATIO:PASS
INVENTORY TO SALES:PASS
EPS GROWTH RATE:PASS
TOTAL DEBT/EQUITY RATIO:PASS
FREE CASH FLOW:NEUTRAL
NET CASH POSITION:NEUTRAL

Detailed Analysis of INTERNET INITIATIVE JAPAN INC. (ADR)

Full Guru Analysis for IIJIY

Full Factor Report for IIJIY

More details on Validea's Peter Lynch strategy

Peter Lynch Stock Ideas

About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.

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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ROCK HIMX BSRR PFBC FSS UNH TSBK IIJIY

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