The following are the top rated Basic Materials stocks according to Validea's Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
SEALED AIR CORP (SEE) is a mid-cap growth stock in the Containers & Packaging industry. The rating according to our strategy based on John Neff is 79% 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: Sealed Air Corporation is a provider of packaging solutions for the food, e-Commerce, electronics and industrial markets. The Company serves a range of markets including food and beverage processing, food service, retail, commercial and consumer applications, by providing food safety and security, product protection and equipment. It operates through two segments: food and protective. Food provides integrated packaging materials and equipment solutions to provide food safety and shelf life extension. Food solutions are marketed under the Cryovac trademark and other trade names including Cryovac Grip & Tear, Cryovac Darfresh, Cryovac Mirabella, Simple Steps and OptiDure. Protective solutions are marketed under brands including Bubble Wrap brand inflatable packaging, Sealed Air brand performance shrink films and Autobag brand bagging systems.
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 RATIO: | PASS |
| EPS GROWTH: | PASS |
| FUTURE EPS GROWTH: | PASS |
| SALES GROWTH: | FAIL |
| TOTAL RETURN/PE: | PASS |
| FREE CASH FLOW: | PASS |
| EPS PERSISTENCE: | FAIL |
Detailed Analysis of SEALED AIR CORP
BERRY GLOBAL GROUP INC (BERY) is a mid-cap value stock in the Containers & Packaging industry. The rating according to our strategy based on John Neff is 62% 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: Berry Global Group, Inc., formerly Berry Plastics Group, Inc., is a provider of value-added plastic consumer packaging, non-woven specialty materials and engineered materials. The Company offers products, such as closures, prescription vials, specialty films, adhesives, nonwovens, drink cups, containers and bottles. The Company operates through three segments: Health, Hygiene & Specialties, Consumer Packaging, and Engineered Materials. The Consumer Packaging segment primarily consists of containers, foodservice items, closures, overcaps, bottles, prescription vials, tubes, and printed films. The Health, Hygiene & Specialties segment primarily consists of non-woven specialty materials used in hygiene, infection prevention, personal care, industrial, construction, and filtration applications. The Engineered Materials segment primarily consists of pipeline corrosion protection solutions, tapes and adhesives, polyethylene-based film products, and specialty coated and laminated products.
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 RATIO: | FAIL |
| EPS GROWTH: | FAIL |
| FUTURE EPS GROWTH: | PASS |
| SALES GROWTH: | PASS |
| TOTAL RETURN/PE: | PASS |
| FREE CASH FLOW: | PASS |
| EPS PERSISTENCE: | PASS |
Detailed Analysis of BERRY GLOBAL GROUP INC
MYERS INDUSTRIES, INC. (MYE) is a small-cap value stock in the Fabricated Plastic & Rubber industry. The rating according to our strategy based on John Neff is 62% 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: Myers Industries, Inc. is an international manufacturing and distribution company. The Company operates through two segments: Material Handling and Distribution. As of December 31, 2016, the Company operated 15 manufacturing facilities, 20 sales offices, four distribution centers and three distribution branches located throughout North, Central and South America. As of December 31, 2016, the Company had approximately 15,000 manufactured products and over 13,500 distributed products. The Material Handling segment designs, manufactures and markets a range of plastic and metal products. The Distribution Segment is engaged in the distribution of tools, equipment and supplies used for tire, wheel and under vehicle service on passenger, heavy truck and off-road vehicles, and the manufacturing of tire repair materials and custom rubber products. The product line includes categories, such as tire valves and accessories, and lifts and alignment 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 RATIO: | PASS |
| EPS GROWTH: | PASS |
| FUTURE EPS GROWTH: | FAIL |
| SALES GROWTH: | FAIL |
| TOTAL RETURN/PE: | PASS |
| FREE CASH FLOW: | PASS |
| EPS PERSISTENCE: | PASS |
Detailed Analysis of MYERS INDUSTRIES, INC.
AVERY DENNISON CORP (AVY) is a large-cap growth stock in the Containers & Packaging industry. The rating according to our strategy based on John Neff is 60% 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: Avery Dennison Corporation (Avery Dennison) is engaged in the production of pressure-sensitive materials and a range of tickets, tags, labels and other converted products. The Company's segments include Label and Graphic Materials (LGM); Retail Branding and Information Solutions (RBIS), and Industrial and Healthcare Materials (IHM). The Company's LGM segment manufactures and sells Fasson-, JAC-, and Avery Dennison-brand pressure-sensitive label and packaging materials, Avery Dennison- and Mactac-brand graphics, and Avery Dennison-brand reflective products. The Company's RBIS segment designs, manufactures and sells a range of branding and information solutions to retailers, brand owners, apparel manufacturers, distributors and industrial customers on a global basis. The Company's IHM segment manufactures and sells Fasson-brand and Avery Dennison-brand tapes and fasteners, Vancive-brand medical pressure-sensitive adhesive (PSA) based materials and products, and performance polymers.
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 RATIO: | PASS |
| EPS GROWTH: | PASS |
| FUTURE EPS GROWTH: | PASS |
| SALES GROWTH: | FAIL |
| TOTAL RETURN/PE: | FAIL |
| FREE CASH FLOW: | PASS |
| EPS PERSISTENCE: | FAIL |
Detailed Analysis of AVERY DENNISON CORP
SILGAN HOLDINGS INC. (SLGN) is a mid-cap growth stock in the Containers & Packaging industry. The rating according to our strategy based on John Neff is 60% 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: Silgan Holdings Inc. is a holding company. The Company is a manufacturer of rigid packaging for consumer goods products. The Company operates in three business segments: metal containers, closures and plastic containers. Its metal container segment is engaged in the manufacture and sale of steel and aluminum containers for human and pet food and general line products. Its closures segment manufactures and sells metal, composite and plastic closures for food and beverage products. Its plastic containers segment manufactures and sells custom designed plastic containers and closures for personal care, food, healthcare, pharmaceutical, household and industrial chemical, pet care, agricultural, automotive and marine chemical products. The Company is a manufacturer of metal containers in North America and Europe. As of December 31, 2016, the Company's products were used for a range of end markets and it operated 87 manufacturing plants in North America, Europe, Asia and South America.
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 RATIO: | PASS |
| EPS GROWTH: | PASS |
| FUTURE EPS GROWTH: | PASS |
| SALES GROWTH: | FAIL |
| TOTAL RETURN/PE: | FAIL |
| FREE CASH FLOW: | PASS |
| EPS PERSISTENCE: | FAIL |
Detailed Analysis of SILGAN HOLDINGS INC.
More details on Validea's John Neff strategy
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as "relatively prosaic, dull, [and] conservative." There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500's 10.6 percent return during that time. That 3.1 percentage point difference is huge over time -- a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff's tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
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.
