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Validea Peter Lynch Strategy Daily Upgrade Report - 3/16/2021

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.

WEIS MARKETS, INC. (WMK) is a small-cap value stock in the Retail (Grocery) 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: Weis Markets, Inc. is engaged principally in the retail sale of food in Pennsylvania and surrounding states. The Company's retail food stores sell groceries, dairy products, frozen foods, meats, seafood, fresh produce, floral, pharmacy services, deli products, prepared foods, bakery products, beer and wine, fuel and general merchandise items, such as health and beauty care and household products. As of December 31, 2016, it had owned and operated approximately 204 retail food stores. The majority of the Company's stores are concentrated in central and northeast Pennsylvania, central Maryland, suburban Washington, District of Columbia and Baltimore regions and New York's Southern Tier. As of December 31, 2016, it had operated four stores in Delaware, 50 stores in Maryland, five stores in New Jersey, nine stores in New York, 121 stores in Pennsylvania, 13 stores in Virginia and two stores in West Virginia, for a total of 204 retail food stores operating under the Weis Markets name.

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:PASS
FREE CASH FLOW:NEUTRAL
NET CASH POSITION:NEUTRAL

Detailed Analysis of WEIS MARKETS, INC.

Full Guru Analysis for WMK

Full Factor Report for WMK

EL POLLO LOCO HOLDINGS INC (LOCO) is a small-cap growth stock in the Restaurants industry. The rating according to our strategy based on Peter Lynch changed from 0% to 87% 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: El Pollo Loco Holdings, Inc. specializes in fire-grilling citrus-marinated chicken and operates in the limited service restaurant (LSR) segment. The Company's menu features its signature product, citrus-marinated fire-grilled chicken, and a range of Mexican-inspired entrees that it creates from chicken. Every day in every restaurant, the Company marinates and fire-grills its chicken over open flames, and hand-slices whole tomatoes, avocados, serrano peppers and cilantro to make its salsas, guacamole and cilantro dressings from scratch. The Company also offers burritos, salads, tostadas, bowls, stuffed quesadillas and chicken entrees. The Company's entrees include Chicken Avocado Burrito, Under 500 Calorie entrees, Ultimate Pollo Bowl, and Stuffed Chicken Avocado Quesadilla. As of December 28, 2016, the Company had 460 restaurants, consisting of 201 Company-operated and 259 franchised restaurants. The Company also offers additional proteins, such as shrimp, carnitas and beef.

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:PASS

Detailed Analysis of EL POLLO LOCO HOLDINGS INC

Full Guru Analysis for LOCO

Full Factor Report for LOCO

SURO CAPITAL CORP (SSSS) is a small-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 0% 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: SuRo Capital Corp. (SuRo Capital), formerly Sutter Rock Capital Corp., is an investment fund that seeks to invest in venture-backed private companies. SuRo Capital seeks to create a portfolio of private companies via a repeatable investment approach, as well as to provide investors with access to such companies through its publicly traded common stock.

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

Detailed Analysis of SURO CAPITAL CORP

Full Guru Analysis for SSSS

Full Factor Report for SSSS

TURQUOISE HILL RESOURCES LTD (TRQ) is a mid-cap value stock in the Metal Mining 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: Turquoise Hill Resources Ltd. is an international mining company. The Company focuses on the operation and further development of the Oyu Tolgoi copper-gold mine in Southern Mongolia, which is the Company's principal material mineral resource property. The Company's Oyu Tolgoi mine is held through approximately 65% interest in Oyu Tolgoi LLC (Oyu Tolgoi) and the remaining approximately 35% interest is held by Erdenes Oyu Tolgoi LLC (Erdenes). The Company's Oyu Tolgoi mine is located approximately 550 kilometers south of Ulaanbaatar, Mongolia's capital city, and 80 kilometers north of the Mongolia-China border. The Company's Mineralization on the property consists of porphyry-style copper, gold, silver and molybdenum contained in a linear structural trend (the Oyu Tolgoi Trend) of deposits throughout this trend. They include, from south to north, the Heruga Deposit, the Oyut deposit and the Hugo Dummett deposits (Hugo South, Hugo North and Hugo North Extension).

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 TURQUOISE HILL RESOURCES LTD

Full Guru Analysis for TRQ

Full Factor Report for TRQ

SHYFT GROUP INC (SHYF) is a small-cap growth stock in the Auto & Truck Manufacturers 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: The Shyft Group, Inc., formerly Spartan Motors, Inc., is an engineer and manufacturer in the heavy-duty, custom vehicles marketplace. The Company operates through two segments: Fleet Vehicles and Services, and Specialty Chassis and Vehicles. The Company's Fleet Vehicles and Services segment focuses on designing and manufacturing walk-in vans, and supplies related aftermarket parts and services under the Utilimaster brand name. Its Specialty Chassis and Vehicles segment consists of the operations of Spartan Motors Chassis, Inc. (Spartan Chassis) that engineer and manufacture motor home chassis, defense vehicles and other specialty chassis, and distribute related aftermarket parts and assemblies. The Company markets its products under brands, such as Aeromaster, Trademaster, Metromaster and Utilivan.

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
INVENTORY TO SALES:PASS
EPS GROWTH RATE:PASS
TOTAL DEBT/EQUITY RATIO:PASS

Detailed Analysis of SHYFT GROUP INC

Full Guru Analysis for SHYF

Full Factor Report for SHYF

BANCO MACRO SA (ADR) (BMA) is a small-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Peter Lynch changed from 78% to 96% 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: Banco Macro SA is an Argnetina-based financial institution (the Bank) that offers traditional bank products and services to companies, including those operating in regional economies, as well as to individuals. In addition, the Bank performs certain transactions through its subsidiaries, including mainly Banco del Tucuman, Macro Bank Ltd, Macro Securities SA, Macro Fiducia SA and Macro Fondos SGFCI SA. It has approximately two categories of customers, such as retail customers, including individuals and entrepreneurs and corporate customers, which include small, medium and large companies and major corporations. In addition, it provides services to over four provincial governments. It provides its corporate customers with traditional banking products and services, such as deposits, lending (including overdraft facilities), check cashing advances and factoring, guaranteed loans and credit lines for financing foreign trade and cash management 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:BONUS PASS
NET CASH POSITION:NEUTRAL

Detailed Analysis of BANCO MACRO SA (ADR)

Full Guru Analysis for BMA

Full Factor Report for BMA

GLOBAL PARTNERS LP (GLP) is a small-cap value stock in the Retail (Grocery) 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: Global Partners LP is a midstream logistics and marketing company. It is engaged in the purchasing, selling, storing and logistics of transporting petroleum and related products, including gasoline and gasoline blendstocks, distillates, residual oil, renewable fuels, crude oil, natural gas and propane. Its segments include Wholesale, Gasoline Distribution and Station Operations and Commercial. In Wholesale segment, the Company engages in the logistics of selling, gathering, storage and transportation of refined petroleum products, renewable fuels, crude oil and propane. In Gasoline Distribution and Station Operations segment, gasoline distribution includes sales of branded and unbranded gasoline to gasoline station operators and sub-jobbers. The Commercial segment includes sales and deliveries to end user customers in the public sector and to commercial and industrial end users of unbranded gasoline, home heating oil, diesel, kerosene, residual oil, bunker fuel and natural gas.

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:FAIL
FREE CASH FLOW:NEUTRAL
NET CASH POSITION:NEUTRAL

Detailed Analysis of GLOBAL PARTNERS LP

Full Guru Analysis for GLP

Full Factor Report for GLP

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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