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.
PROVIDENT FINANCIAL SERVICES, INC. (PFS) 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 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: Provident Financial Services, Inc. is a holding company for The Provident Bank (the Bank). The Bank is a New Jersey-chartered capital stock savings bank operating full-service branch offices throughout northern and central New Jersey, as well as Bucks, Lehigh and Northampton counties in Pennsylvania and Queens County, New York. The Bank provides a range of financial products and services through its network of branches. The Bank originates commercial real estate loans, commercial business loans, fixed-rate and adjustable-rate mortgage loans collateralized by one-to four-family residential real estate and other consumer loans, for borrowers generally located within its primary market area. The Bank invests in mortgage-backed securities and other permissible investments. It provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company, and insurance brokerage services through its subsidiary, SB One Insurance Agency, Inc.
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: | FAIL |
| YIELD COMPARED TO THE S&P 500: | PASS |
| YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: | 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 PROVIDENT FINANCIAL SERVICES, INC.
GOLUB CAPITAL BDC INC (GBDC) is a mid-cap value stock in the Misc. Financial Services 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: Golub Capital BDC, Inc. is an externally managed, closed-end, non-diversified management investment company. The Company's investment strategy is to invest primarily in one stop and other senior secured loans of United States middle-market companies. The Company also selectively invests in second lien and subordinated loans of, and warrants and minority equity securities in, United States middle-market companies. It also invests in industries, such as healthcare, restaurant and retail, software, digital and technology services, specialty manufacturing, business services, consumer products and services, food and beverages, aerospace and defense, and value-added distribution. The Company's investment activities are managed by its investment adviser, GC Advisors LLC.
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: | FAIL |
| YIELD COMPARED TO THE S&P 500: | PASS |
| YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: | 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 GOLUB CAPITAL BDC INC
DARDEN RESTAURANTS, INC. (DRI) is a large-cap growth stock in the Restaurants industry. The rating according to our strategy based on Peter Lynch changed from 72% 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: Darden Restaurants, Inc. is a full-service restaurant company. owns and operates full-service dining restaurants in the United States and Canada under the trade names Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood and The Capital Burger. The Company also has 25 franchised restaurants in operation located in Latin America. It has four reportable segments: Olive Garden, LongHorn Steakhouse, Fine Dining and Other Business. The Olive Garden segment includes Olive Garden restaurants in United States and Canada. The LongHorn Steakhouse segment includes LongHorn Steakhouse restaurants in the United States. The Fine Dining segment brands that operate within the fine-dining sub-segment of full-service dining. The Other Business segment include remaining brands Cheddar's Scratch Kitchen, Yard House, Seasons 52, Bahama Breeze and The Capital Burger restaurants.
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 DARDEN RESTAURANTS, INC.
DEERE & COMPANY (DE) is a large-cap growth stock in the Constr. & Agric. Machinery 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: Deere & Company produces intelligent, connected machines and applications, which help the agriculture and construction industries. The Company's production and precision agriculture segment develops and delivers global equipment and technology solutions to unlock customer value for production-scale growers of large grains, small grains, cotton, and sugar. The small agriculture and turf segment develops and delivers global equipment and technology solutions to unlock customer value for dairy and livestock producers, crop producers, and turf and utility customers. The construction and forestry segment develops and delivers a range of machines and technology solutions organized along the earthmoving, forestry, and roadbuilding production systems. The financial services segment primarily finances sales and leases by John Deere dealers of new and used production and precision agriculture, small agriculture and turf, and construction and forestry equipment.
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: | FAIL |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of DEERE & COMPANY
WASHINGTON FEDERAL INC. (WAFD) is a small-cap value stock in the Regional Banks 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: Washington Federal, Inc. is a bank holding company. The Company conducts its operations through a federally insured national bank subsidiary, Washington Federal, National Association (the Bank). The business of the Bank consists primarily of accepting deposits from the general public and investing these funds in loans of various types, including first lien mortgages on single-family dwellings, construction loans, land acquisition and development loans, loans on multi-family, commercial real estate and other income producing properties, home equity loans and business loans. Washington Federal Bank has approximately 224 branches located in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. Through the Bank's subsidiaries, the Company is also engaged in insurance brokerage activities. The Bank offers various consumer checking account products, both interest bearing and non-interest bearing, and business checking accounts.
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: | FAIL |
| YIELD COMPARED TO THE S&P 500: | PASS |
| YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: | 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 WASHINGTON FEDERAL INC.
More details on Validea's Peter Lynch strategy
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.
