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.
FINVOLUTION GROUP (FINV) is a small-cap value stock in the Software & Programming industry. The rating according to our strategy based on Peter Lynch changed from 0% 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: FinVolution Group, formerly PPDAI GROUP INC, is a China-based company mainly engaged in operating an online consumer finance platform. The Company's products and services include loan services offered to borrowers, investment services offered to individual investors and institutional funding partners. The loan services offered to borrowers include standard loan products, consumption loan products and other loan products. The investment services offered to individual investors include self-discretionary investing tools, automated investing tools, investment programs and a secondary loan market. The Company also introduces borrowers to institutional funding partners and provides preliminary credit assessment services as well as other 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.
| SALES: | PASS |
| INVENTORY TO SALES: | FAIL |
| YIELD COMPARED TO THE S&P 500: | PASS |
| YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | BONUS PASS |
Detailed Analysis of FINVOLUTION GROUP
LEGACY HOUSING CORP (LEGH) is a small-cap value stock in the Mobile Homes & RVs 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: Legacy Housing Corporation is a company, which is engaged in selling and financing manufactured homes and tiny houses. It operates primarily in the southern United States, it offers its customers an array of homes ranging in size from approximately 390 to 2,667 square feet consisting of one to five bedrooms, with one to 31/2 bathrooms. The Company manufactures and provides for the transport of mobile homes, provides wholesale financing to dealers and mobile home parks, provides retail financing to consumers, and is involved in financing and developing new manufactured home communities. The Company manufactures its mobile homes at plants located in Fort Worth, Texas, Commerce, Texas and Eatonton, Georgia. The Company relies on a network of dealers to market and sell its mobile homes. The Company also sells homes directly to dealers and mobile home parks.
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 |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of LEGACY HOUSING CORP
EAGLE PHARMACEUTICALS INC (EGRX) is a small-cap value stock in the Biotechnology & Drugs 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: Eagle Pharmaceuticals, Inc. is a pharmaceutical company. The Company's products include Ryanodex, Bendeka, Belrapzo, Treakisym, Pemfexy, Barhemsys and Byfavo. Ryanodex is used for malignant hyperthermia. EP-4104 Ryanodex (dantrolene sodium) is used for the treatment of organophosphate exposure. Belrapzo, Bendeka and Treakisym are used for chronic lymphocytic leukemia and non-Hodgkin's lymphoma. Pemfexy is an IV-administered cancer agent indicated for locally advanced or metastatic non-small cell lung cancer and mesothelioma. Its oncology and CNS/metabolic critical care pipeline includes product candidates that addresses underserved therapeutic areas across multiple disease states. Its vasopressin is an A-rated generic alternative to Vasostrict, which is indicated to increase blood pressure in adults with vasodilatory shock who remain hypotensive despite fluids and catecholamines. It is engaged in clinical trials for CAL02, an approach to the treatment of severe bacterial pneumonia.
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 EAGLE PHARMACEUTICALS INC
LEXINFINTECH HOLDINGS LTD - ADR (LX) is a small-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 78% 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: LexinFintech Holdings Ltd. is a holding company. The Company is primarily engaged in providing online direct sales services and online consumer finance services. The Company's online consumer finance platform, Fenqile, offers customers personal installment loans, installment purchase loans and other loan products. Through its online investment platform, Juzi Licai, the Company matches funding from individual investors with customer loans. The Company also offers Le Card credit line to its customers. The Company serves the credit needs of the customers aged between 18 and 36 in China.
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 LEXINFINTECH HOLDINGS LTD - ADR
ATLANTICUS HOLDINGS CORP (ATLC) is a small-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 78% 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: Atlanticus Holdings Corporation is a financial technology company engaged in facilitating consumer credit through financial technology and related services. The Company's segments include Credit as a Service (CaaS) and Auto Finance Segment. CaaS segment provides private label credit and general purpose credit cards originated by lenders through multiple channels, including retail and healthcare, direct mail solicitation, digital marketing and partnerships with third parties. Its flexible technology solutions allow bank partners to integrate its paperless process and instant decisioning platform with the existing infrastructure of participating retailers and service providers. Auto Finance segment conducted through its CAR platform. CAR primarily purchases and/or services loans secured by automobiles and provides floor-plan financing for pre-qualified network of independent automotive dealers and automotive finance companies in the buy-here and pay-here used car business.
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: | FAIL |
| 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 ATLANTICUS HOLDINGS CORP
PINNACLE FINANCIAL PARTNERS INC (PNFP) is a mid-cap value stock in the Money Center 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: Pinnacle Financial Partners, Inc. is a financial holding company. The Company operates through its wholly owned subsidiary, Pinnacle Bank (the Bank). The Bank is a Tennessee state-chartered bank. The Bank offers a full range of lending products, including commercial, real estate and consumer loans to individuals, businesses and professional entities. The Bank is also focused on offering core deposits, including savings, checking, noninterest-bearing checking, interest-bearing checking, money market and certificate of deposit accounts, including access to products offered through various IntraFi Network Deposit programs. It also offers a range of treasury management and remote deposit services, including online wire origination, zero balance and sweep accounts, automated bill pay services, and lockbox processing. It operates approximately 118 offices, including 49 in Tennessee, 37 in North Carolina, 20 in South Carolina, nine in Virginia, two in Georgia and one in Alabama.
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 PINNACLE FINANCIAL PARTNERS INC
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 aninvestment researchservice 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.
