The following are the top rated Basic Materials stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
SIMPSON MANUFACTURING CO, INC. (SSD) is a mid-cap growth stock in the Misc. Fabricated Products industry. The rating according to our strategy based on Martin Zweig is 85% 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: Simpson Manufacturing Co,. Inc., through its subsidiary, Simpson Strong-Tie Company Inc. (SST), designs, engineers and manufactures wood and concrete building construction products. Its wood construction products include connectors, truss plates, fastening systems, fasteners and prefabricated lateral resistive systems. Its wood construction products are used in light-frame construction. Its concrete construction products include adhesives, chemicals, mechanical anchors, carbide drill bits, powder actuated tools, fiber reinforced materials and other repair products used for protection and strengthening. Its concrete construction products are used in concrete, masonry and steel construction. It markets its products to the residential construction, light industrial and commercial construction, remodeling and do-it-yourself markets. It also provides engineering and design services. It also operates as designer and manufacturer of fixing and fastening solutions for the Europe markets.
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 |
| REVENUE GROWTH IN RELATION TO EPS GROWTH: | FAIL |
| SALES GROWTH RATE: | PASS |
| CURRENT QUARTER EARNINGS: | PASS |
| QUARTERLY EARNINGS ONE YEAR AGO: | PASS |
| POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: | PASS |
| EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: | FAIL |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: | PASS |
| EARNINGS PERSISTENCE: | PASS |
| LONG-TERM EPS GROWTH: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| INSIDER TRANSACTIONS: | PASS |
Detailed Analysis of SIMPSON MANUFACTURING CO, INC.
UFP INDUSTRIES INC (UFPI) is a mid-cap value stock in the Forestry & Wood Products industry. The rating according to our strategy based on Martin Zweig is 85% 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: UFP Industries, Inc. is a holding company with subsidiaries throughout North America, Europe, Asia, and Australia, which supply products primarily manufactured from wood, wood and non-wood composites, and other materials. The Company has three segments: Retail, Industrial and Construction. Retail segment offers a portfolio of outdoor living products, including wood and wood composite decking and related accessories, decorative lawn and garden products, and craft and hobby products. Industrial segment manufacturers and agricultural customers who use pallets, specialty crates, wooden boxes and other containers used for packaging, shipping and material handling purposes, as well as various other products, including protective packaging, used in a variety of different applications. Construction segment is made up of customers in four primary markets, factory-built housing, site-built residential construction, commercial construction and concrete forming.
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 |
| REVENUE GROWTH IN RELATION TO EPS GROWTH: | FAIL |
| SALES GROWTH RATE: | PASS |
| CURRENT QUARTER EARNINGS: | PASS |
| QUARTERLY EARNINGS ONE YEAR AGO: | PASS |
| POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: | PASS |
| EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: | PASS |
| EARNINGS PERSISTENCE: | PASS |
| LONG-TERM EPS GROWTH: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| INSIDER TRANSACTIONS: | PASS |
Detailed Analysis of UFP INDUSTRIES INC
BALL CORPORATION (BLL) is a large-cap growth stock in the Containers & Packaging industry. The rating according to our strategy based on Martin Zweig is 77% 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: Ball Corporation is a United States-based aluminum packaging suppliers. The Company is focused on suppling aluminum packaging for the beverage, personal care and household products industries. The Company's sustainable and aluminum packaging products are produced for a various of end uses and are manufactured in facilities worldwide. It also provides aerospace and other technologies and services to governmental and commercial customers within its aerospace segment. The Company's segments include beverage packaging, North and Central America; beverage packaging, Europe, Middle East and Africa (beverage packaging, EMEA); beverage packaging, South America and aerospace. It produces spacecraft, instruments and sensors, radio frequency systems and components, data exploitation solutions and a range of advanced technologies and products that enable weather prediction and climate change monitoring. It provides solutions to multinational beverage, personal care & household products 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 RATIO: | PASS |
| REVENUE GROWTH IN RELATION TO EPS GROWTH: | FAIL |
| SALES GROWTH RATE: | PASS |
| CURRENT QUARTER EARNINGS: | PASS |
| QUARTERLY EARNINGS ONE YEAR AGO: | PASS |
| POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: | PASS |
| EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: | FAIL |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: | PASS |
| EARNINGS PERSISTENCE: | PASS |
| LONG-TERM EPS GROWTH: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| INSIDER TRANSACTIONS: | PASS |
Detailed Analysis of BALL CORPORATION
FUTUREFUEL CORP. (FF) is a small-cap growth stock in the Chemical Manufacturing industry. The rating according to our strategy based on Martin Zweig is 77% 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: FutureFuel Corp. is a manufacturer of chemical products, bio-based fuel products, and bio-based specialty chemical products. The Company's segments include chemicals and biofuels. The chemicals segment manufactures a diversified listing of chemical products that are sold to third party customers. This segment comprises two components: custom manufacturing (manufacturing specialty chemicals for specific customers) and performance chemicals (multi-customer specialty chemicals). The custom manufacturing product portfolio includes agrochemicals, adhesion promoters, a biocide intermediate, and an antioxidant precursor. The performance chemical products include a portfolio of proprietary nylon and polyester polymer modifiers and several small-volume specialty chemicals and solvents for diverse applications. The biofuels segment is primarily engaged in the production and sale of biodiesel and Petro diesel blends. Its subsidiaries include FFC Grain, L.L.C. and FutureFuel Chemical Company.
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 |
| REVENUE GROWTH IN RELATION TO EPS GROWTH: | PASS |
| SALES GROWTH RATE: | PASS |
| CURRENT QUARTER EARNINGS: | PASS |
| QUARTERLY EARNINGS ONE YEAR AGO: | PASS |
| POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: | PASS |
| EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: | FAIL |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: | PASS |
| EARNINGS PERSISTENCE: | FAIL |
| LONG-TERM EPS GROWTH: | FAIL |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| INSIDER TRANSACTIONS: | PASS |
Detailed Analysis of FUTUREFUEL CORP.
FMC CORP (FMC) is a large-cap growth stock in the Chemical Manufacturing industry. The rating according to our strategy based on Martin Zweig is 77% 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: FMC Corporation is an agricultural sciences company, which provides solutions to growers with a product portfolio fueled by a market-driven discovery and development pipeline in crop protection, crop enhancement, and professional pest and turf management. The Company's crop protection solutions, including biologicals, crop nutrition, digital, and precision agriculture. Its portfolio is comprised of three pesticide categories, including insecticides, herbicides, and fungicides. Its insecticides are used to control a pest, while its herbicide portfolio is used to control weeds. Its herbicides are used in the protection of crops including soybeans, corn, fruits and vegetables, cotton, sugarcane, rice, and cereals. It also provides Plant Health program, which includes biological crop protection products, seed treatments, and micro-nutrients. Its product portfolio includes insect control products based on Rynaxypyr (Chlorantraniliprole) and Cyazypyr (Cyantraniliprole) active ingredients.
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 |
| REVENUE GROWTH IN RELATION TO EPS GROWTH: | FAIL |
| SALES GROWTH RATE: | PASS |
| CURRENT QUARTER EARNINGS: | PASS |
| QUARTERLY EARNINGS ONE YEAR AGO: | PASS |
| POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: | PASS |
| EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: | FAIL |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: | PASS |
| EARNINGS PERSISTENCE: | PASS |
| LONG-TERM EPS GROWTH: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| INSIDER TRANSACTIONS: | PASS |
Detailed Analysis of FMC CORP
More details on Validea's Martin Zweig strategy
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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.
