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Validea Peter Lynch Strategy Daily Upgrade Report - 8/26/2020

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.

CONSTRUCTION PARTNERS INC (ROAD) is a small-cap growth stock in the Construction 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: Construction Partners, Inc. provides civil infrastructure construction services. The Company is specialized in the construction and maintenance of transportation networks in the United States. It provides construction products and services to both public and private infrastructure projects. It focuses on transportation infrastructure projects that include highways, roads, bridges, airports, and commercial and residential sites in the Southeastern United States. The Company also offers range of large site work construction and hot mix asphalt paving services to commercial and residential developers, and other local businesses.

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 CONSTRUCTION PARTNERS INC

Full Guru Analysis for ROAD

Full Factor Report for ROAD

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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At Validea we believe the best way to outperform the market is to follow the investment factors and strategies that have done so over long periods of time. Since 2003, our team has been dedicated to bringing the fundamental strategies of great investors and academics to the professional and retail investment communities via the tools, portfolios and research found on Validea.

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