Markets

Validea Peter Lynch Strategy Daily Upgrade Report - 12/3/2019

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.

CENTRAL GARDEN & PET CO (CENT) is a small-cap growth stock in the Food Processing industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% 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: Central Garden & Pet Company is a marketer and producer of branded products and distributor of third party products in the pet and lawn and garden supplies industries in the United States. The Company operates in two segments: Pet segment and the Garden segment. It is a marketer and producer of pet supplies in the United States. In addition, its Pet segment operates sales and logistics networks in the industry strategically supporting its brands. Its principal pet supplies categories are dog and cat, aquatics, bird and small animal, wild bird feed and animal health products. The Company markets and produces various brands, including Pennington, The Rebels, AMDRO, Lilly Miller, Ironite, Sevin, and Over-N-Out. Its Garden segment operates a sales and logistics network that strategically supports its brands. The Company's principal lawn and garden product lines include grass seed, wild bird feed and insect control products.

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

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

GAP INC (GPS) is a mid-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Peter Lynch changed from 0% 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: The Gap, Inc. (Gap Inc.) is an apparel retail company. The Company offers apparel, accessories and personal care products for men, women and children under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. Its products are available to customers online through Company-owned Websites and through the use of third-parties that provide logistics and fulfillment services. In addition to operating in the specialty, outlet, online and franchise channels, it also uses the Company's omni-channel capabilities to bridge the digital world and physical stores. Its omni-channel services, including order-in-store, reserve-in-store, find-in-store and ship-from-store are tailored across its portfolio of brands. It also sells products that are designed and manufactured by branded third-parties, especially at its Intermix brands. It has Company-operated stores in the United States, Canada, the United Kingdom, France, Ireland, Japan, Italy, China, Hong Kong, Taiwan, and Mexico.

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: PASS
SALES AND P/E RATIO: PASS YIELD COMPARED TO THE S&P 500: PASS
INVENTORY TO SALES: PASS YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS
EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL
FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL
NET CASH POSITION: NEUTRAL

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

ALBANY INTERNATIONAL CORP. (AIN) is a mid-cap growth stock in the Textiles - Non Apparel 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: Albany International Corp. is focused on textiles and materials processing business. The Company operates through two segments: Machine Clothing and Albany Engineered Composites. The Company's Machine Clothing segment supplies permeable and impermeable belts used in the manufacture of paper, paperboard, nonwovens, fiber cement and various other industrial applications. The Machine Clothing segment also supplies customized, consumable fabrics used in the manufacturing process in the pulp, corrugator, nonwovens, fiber cement, building products, and tannery and textile industries. Its Albany Engineered Composites segment includes Albany Safran Composites, LLC (ASC), in which its customer SAFRAN Group owns interest and provides engineered composite structures based on its technology to customers in the aerospace and defense industries.

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: PASS P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS YIELD COMPARED TO THE S&P 500: PASS SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL

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

NTT DOCOMO INC (ADR) (DCMYY) is a large-cap growth stock in the Communications Services industry. The rating according to our strategy based on Peter Lynch changed from 0% 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: NTT DOCOMO, INC. is a Japan-based company mainly engaged in the mobile communication business. The Company operates through three business segments. The Communications segment is engaged in the provision of long-term evolution (LTE) (Xi) services, freedom of mobile multimedia access (FOMA) services and other mobile phone services, optical-fiber broadband services, satellite mobile communications services, international services, as well as the sale of related equipment. The Smart Life segment is engaged in the provision of video, music, electronic books and other distribution services, finance and payment services, shopping services, as well as other lifestyle related services. The Other segment is engaged in the provision of mobile devices protection services, as well as the development, sale and maintenance of 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: PASS P/E/GROWTH RATIO: PASS YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
SALES AND P/E RATIO: PASS YIELD COMPARED TO THE S&P 500: PASS SALES AND P/E RATIO: PASS EARNINGS PER SHARE: PASS
INVENTORY TO SALES: PASS YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS INVENTORY TO SALES: PASS TOTAL DEBT/EQUITY RATIO: PASS
EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS EPS GROWTH RATE: PASS FREE CASH FLOW: NEUTRAL
TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL TOTAL DEBT/EQUITY RATIO: PASS NET CASH POSITION: NEUTRAL
FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL

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

ATKORE INTERNATIONAL GROUP INC (ATKR) is a small-cap value stock in the Constr. - Supplies & Fixtures industry. The rating according to our strategy based on Peter Lynch changed from 0% 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: Atkore International Group Inc. is a manufacturer of electrical raceway products. The Company's products are primarily offered for non-residential construction and renovation markets, and mechanical products and solutions (MP&S) for the construction and industrial markets. The Company operates in two segments: Electrical Raceway and MP&S. Through the electrical raceway segment, it manufactures products that deploy, isolate and protect a structure's electrical circuitry from the original power source to the final outlet. The Company's electrical raceway segment products include electrical conduit, armored cable, cable trays, mounting systems and fittings. Through the MP&S segment, it provides products and services that frame, support and secure component parts in a range of structures, equipment and systems in electrical, industrial and construction applications. The Company's MP&S segment products include metal framing products and in-line galvanized mechanical tube.

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: PASS P/E/GROWTH RATIO: PASS YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS YIELD COMPARED TO THE S&P 500: PASS SALES AND P/E RATIO: PASS EARNINGS PER SHARE: PASS SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS INVENTORY TO SALES: PASS TOTAL DEBT/EQUITY RATIO: PASS INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS EPS GROWTH RATE: PASS FREE CASH FLOW: NEUTRAL EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL TOTAL DEBT/EQUITY RATIO: PASS NET CASH POSITION: NEUTRAL TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL FREE CASH FLOW: NEUTRAL FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL

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

BERRY GLOBAL GROUP INC (BERY) is a mid-cap growth stock in the Containers & Packaging industry. The rating according to our strategy based on Peter Lynch changed from 56% 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: Berry Global Group, Inc., formerly Berry Plastics Group, Inc., is a provider of value-added plastic consumer packaging, non-woven specialty materials and engineered materials. The Company offers products, such as closures, prescription vials, specialty films, adhesives, nonwovens, drink cups, containers and bottles. The Company operates through three segments: Health, Hygiene & Specialties, Consumer Packaging, and Engineered Materials. The Consumer Packaging segment primarily consists of containers, foodservice items, closures, overcaps, bottles, prescription vials, tubes, and printed films. The Health, Hygiene & Specialties segment primarily consists of non-woven specialty materials used in hygiene, infection prevention, personal care, industrial, construction, and filtration applications. The Engineered Materials segment primarily consists of pipeline corrosion protection solutions, tapes and adhesives, polyethylene-based film products, and specialty coated and laminated products.

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: PASS P/E/GROWTH RATIO: PASS YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS YIELD COMPARED TO THE S&P 500: PASS SALES AND P/E RATIO: PASS EARNINGS PER SHARE: PASS SALES AND P/E RATIO: PASS SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS INVENTORY TO SALES: PASS TOTAL DEBT/EQUITY RATIO: PASS INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS EPS GROWTH RATE: PASS FREE CASH FLOW: NEUTRAL EPS GROWTH RATE: PASS EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL TOTAL DEBT/EQUITY RATIO: PASS NET CASH POSITION: NEUTRAL TOTAL DEBT/EQUITY RATIO: FAIL TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL FREE CASH FLOW: NEUTRAL FREE CASH FLOW: NEUTRAL FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL

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

CAVCO INDUSTRIES, INC. (CVCO) is a small-cap growth stock in the Mobile Homes & RVs industry. The rating according to our strategy based on Peter Lynch changed from 74% 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: Cavco Industries, Inc. designs and produces factory-built homes. The Company operates through two segments: factory-built housing, which includes wholesale and retail systems-built housing operations, and financial services, which includes manufactured housing consumer finance and insurance. Its factory-built homes are primarily distributed through a network of independent and the Company-owned retailers, planned community operators and residential developers. It markets its products under the brands, including Cavco Homes, Fleetwood Homes, Palm Harbor Homes, Fairmont Homes and Chariot Eagle. It is also a builder of park model recreational vehicle (RVs), vacation cabins and systems-built commercial structures, as well as modular homes built primarily under the Nationwide Homes brand. It also produces a range of Cape Cod-style homes and multi-family units, and builds commercial modular structures, including apartment buildings, schools and housing for the United States military troops.

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: PASS P/E/GROWTH RATIO: PASS YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS YIELD COMPARED TO THE S&P 500: PASS SALES AND P/E RATIO: PASS EARNINGS PER SHARE: PASS SALES AND P/E RATIO: PASS SALES AND P/E RATIO: PASS SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS INVENTORY TO SALES: PASS TOTAL DEBT/EQUITY RATIO: PASS INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS EPS GROWTH RATE: PASS FREE CASH FLOW: NEUTRAL EPS GROWTH RATE: PASS EPS GROWTH RATE: PASS EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL TOTAL DEBT/EQUITY RATIO: PASS NET CASH POSITION: NEUTRAL TOTAL DEBT/EQUITY RATIO: FAIL TOTAL DEBT/EQUITY RATIO: FAIL TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL FREE CASH FLOW: NEUTRAL FREE CASH FLOW: NEUTRAL FREE CASH FLOW: NEUTRAL FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL

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

NVENT ELECTRIC PLC (NVT) is a mid-cap growth stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Peter Lynch changed from 0% 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: nVent Electric plc is a global provider of electrical connection and protection solutions. The Company designs, manufactures, markets, installs and services products and solutions that connect and protect equipment, buildings and critical processes. The Company's portfolio of brands include CADDY, ERICO, HOFFMAN, RAYCHEM, SCHROFF and TRACER. The Company operates through three segments: Enclosures, Thermal Management, and Electrical & Fastening Solutions. The Enclosures segment provides solutions that protect, connect and manage heat in electronics, communication, control, and power equipment. The Thermal Management segment provides electric thermal solutions that connect and protect critical buildings, infrastructure, industrial processes and people. The Electrical & Fastening Solutions segment provides fastening solutions that connect and protect electrical and mechanical systems and civil 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: PASS P/E/GROWTH RATIO: PASS YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS YIELD COMPARED TO THE S&P 500: PASS SALES AND P/E RATIO: PASS EARNINGS PER SHARE: PASS SALES AND P/E RATIO: PASS SALES AND P/E RATIO: PASS SALES AND P/E RATIO: PASS SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: PASS INVENTORY TO SALES: PASS TOTAL DEBT/EQUITY RATIO: PASS INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS TOTAL DEBT/EQUITY RATIO: PASS EPS GROWTH RATE: PASS FREE CASH FLOW: NEUTRAL EPS GROWTH RATE: PASS EPS GROWTH RATE: PASS EPS GROWTH RATE: PASS EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS FREE CASH FLOW: NEUTRAL TOTAL DEBT/EQUITY RATIO: PASS NET CASH POSITION: NEUTRAL TOTAL DEBT/EQUITY RATIO: FAIL TOTAL DEBT/EQUITY RATIO: FAIL TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: NEUTRAL NET CASH POSITION: NEUTRAL FREE CASH FLOW: NEUTRAL FREE CASH FLOW: NEUTRAL FREE CASH FLOW: NEUTRAL FREE CASH FLOW: NEUTRAL FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL NET CASH POSITION: NEUTRAL

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

Since its inception, Validea's strategy based on Peter Lynch has returned 412.76% vs. 213.24% for the S&P 500. For more details on this strategy, click here

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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CENT GPS AIN DCMYY ATKR BERY CVCO NVT

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