Markets

Validea Peter Lynch Strategy Daily Upgrade Report - 9/10/2019

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.

SILVERCORP METALS INC (SVM) is a small-cap growth stock in the Gold & Silver 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: Silvercorp Metals Inc. (Silvercorp) is a silver-producing Canadian mining company. The Company is engaged in the acquisition, exploration, development, and mining of silver-related mineral properties in China. The Company's segments include Mining, including projects, such as Henan Luoning, Hunan, Guangdong and Other, and Administrative, which includes Beijing and Vancouver. The Company is the primary silver producer in China through the operation of over four silver-lead-zinc mines in the Ying Mining District in Henan Province, China, including SGX, HZG, TLP, Haopinggou (HPG) and the LM mines. The Company also has commercial production at its Gaocheng (GC) silver-lead-zinc project in Guangdong Province. Silvercorp's principal products and source of sales are silver-bearing lead and zinc concentrates and some direct smelting ores. The Company sells all its products to local smelters or companies in the mineral products trading 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
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

CERAGON NETWORKS LTD (CRNT) is a small-cap value stock in the Communications Equipment 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: Ceragon Networks Ltd. offers wireless backhaul solutions. The Company's products include FibeAir IP-20 Platform, FibeAir IP-20 Assured Platform and Network Management. The Company provides its services to wireless service providers, public safety organizations, government agencies and utility companies, among others. Its solutions are deployed by over 460 service providers, as well as a range of private network owners, in over 130 countries. The Company's FibeAir IP-20 platform offers flexibility in choosing all-outdoor, split-mount and all-indoor configurations to suit any deployment scenario. The FibeAir IP-20 platform includes product categories, such as shorthaul-access and shorthaul-aggregation. The FibeAir IP-20 Assured platform includes product categories, such as shorthaul-access, shorthaul-aggregation, small cells, longhaul and enterprise access. Its NetMaster is a Network Management System (NMS), which is designed for managing large-scale wireless backhaul networks.

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 P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS
EPS GROWTH RATE: 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

KONINKLIJKE PHILIPS NV (ADR) (PHG) is a large-cap growth stock in the Medical Equipment & Supplies 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: Koninklijke Philips N.V. is the Netherlands-based health technology company. The Company's segments include Personal Health businesses, Diagnosis & Treatment businesses, Connected Care & Health Informatics businesses, HealthTech Other and Legacy Items. The Personal Health businesses segment is engaged in the health continuum, delivering integrated, connected solutions that support healthier lifestyles and those living with chronic disease. The Diagnosis & Treatment businesses segment delivers precision medicine and treatment, and therapy. The Connected Care & Health Informatics businesses segment provides consumers, care givers and clinicians with digital solutions that facilitate care by enabling precision medicine and population health management. The HealthTech Other segment comprises such items, as innovation, emerging businesses, royalties, among others. The Legacy Items segment consists mainly of separation costs, legacy legal items, legacy pension costs, among others.

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 P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL SALES AND P/E RATIO: NEUTRAL SALES AND P/E RATIO: PASS
INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS
EPS GROWTH RATE: PASS EPS GROWTH RATE: PASS EPS GROWTH RATE: FAIL
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS
FREE CASH FLOW: 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

MACK CALI REALTY CORP (CLI) is a small-cap value stock in the Real Estate Operations 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: Mack-Cali Realty Corporation is a self-administered and self-managed real estate investment trust (REIT). The Company owns and operates a real estate portfolio of Class A office and office/flex properties. It operates in three segments: commercial and other real estate, multi-family real estate and multi-family services. Its commercial and other real estate provides leasing, property management, acquisition, development, construction and tenant-related services for its commercial and other real estate, and multi-family real estate portfolio. Its multi-family services business also provides similar services for third parties.

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 P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL SALES AND P/E RATIO: NEUTRAL SALES AND P/E RATIO: PASS SALES AND P/E RATIO: NEUTRAL
INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS INVENTORY TO SALES: PASS EPS GROWTH RATE: PASS
EPS GROWTH RATE: PASS EPS GROWTH RATE: PASS EPS GROWTH RATE: FAIL TOTAL DEBT/EQUITY RATIO: FAIL
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS 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

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

KORN FERRY (KFY) is a mid-cap value stock in the Business 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: Korn Ferry, formerly Korn/Ferry International, is a people and organizational advisory company. The Company and its subsidiaries are engaged in the provision of talent management solutions, including executive search on a retained basis, recruitment for non-executive professionals, recruitment process outsourcing, and leadership and talent consulting services. Its segments include Executive Search, Hay Group and Futurestep. The Executive Search segment focuses on recruiting Board of Director and C-level positions, in addition to research-based interviewing and on-boarding solutions, for clients predominantly in the consumer, financial services, industrial, life sciences/healthcare and technology industries. The Hay Group segment assists clients with ongoing assessment, compensation and development of their senior executives and management teams. The Futurestep segment provides talent acquisition solutions and services, such as project recruitment and individual professional search.

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 P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: PASS YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: PASS
SALES AND P/E RATIO: NEUTRAL SALES AND P/E RATIO: NEUTRAL SALES AND P/E RATIO: PASS SALES AND P/E RATIO: NEUTRAL EARNINGS PER SHARE: 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 EPS GROWTH RATE: PASS EPS GROWTH RATE: FAIL TOTAL DEBT/EQUITY RATIO: FAIL FREE CASH FLOW: NEUTRAL
TOTAL DEBT/EQUITY RATIO: PASS 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 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

NAPCO SECURITY TECHNOLOGIES INC (NSSC) is a small-cap growth stock in the Security Systems & Services 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: NAPCO Security Technologies, Inc. is a manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold across the world principally to independent distributors, dealers and installers of security equipment. The Company manufactures and markets various products for alarm systems, which include automatic communicators, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panel and area detectors. It manufactures a range of door locking devices, including microprocessor-based electronic door locks with push button, card reader and bio-metric operation, door alarms, mechanical door locks and simple dead bolt locks. It also markets peripheral and related equipment manufactured by other companies.

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 P/E/GROWTH RATIO: PASS P/E/GROWTH RATIO: 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: NEUTRAL SALES AND P/E RATIO: NEUTRAL SALES AND P/E RATIO: PASS SALES AND P/E RATIO: NEUTRAL EARNINGS PER SHARE: PASS SALES AND P/E RATIO: NEUTRAL
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
EPS GROWTH RATE: PASS EPS GROWTH RATE: PASS EPS GROWTH RATE: FAIL TOTAL DEBT/EQUITY RATIO: FAIL FREE CASH FLOW: NEUTRAL TOTAL DEBT/EQUITY RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS 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 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 367.77% vs. 199.61% 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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