Markets

Validea's Top Five Consumer Cyclical Stocks Based On Benjamin Graham - 8/26/2019

The following are the top rated Consumer Cyclical stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.

G-III APPAREL GROUP, LTD. (GIII) is a small-cap value stock in the Apparel/Accessories industry. The rating according to our strategy based on Benjamin Graham is 100% 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: G-III Apparel Group, Ltd. designs, manufactures and markets a range of apparel products. The Company operates through two segments: wholesale operations and retail operations. Its apparel products include outerwear, dresses, sportswear, swimwear, women's suits and women's performance wear, as well as women's handbags, footwear, small leather goods, cold weather accessories and luggage. The Company's owned brands include Donna Karan, DKNY, DKNY Jeans, Vilebrequin, G-III Sports by Carl Banks, Eliza J, Black Rivet and Jessica Howard. It has fashion licenses under the Calvin Klein, Tommy Hilfiger, Karl Lagerfeld, Kenneth Cole, Cole Haan and Dockers brands. Through its team sports business, it has licenses with the National Football League, National Basketball Association, Major League Baseball and National Hockey League. It also operates retail stores under the Donna Karan, Wilsons Leather, Bass, G.H. Bass & Co., Vilebrequin and Calvin Klein Performance names.

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.

SECTOR: PASS
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS

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

HOOKER FURNITURE CORPORATION (HOFT) is a small-cap value stock in the Furniture & Fixtures industry. The rating according to our strategy based on Benjamin Graham is 86% 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: Hooker Furniture Corporation is a home furnishings marketing, design and logistics company offering sourcing of residential casegoods and upholstery, as well as domestically-produced leather and fabric-upholstered furniture. The Company operates through three segments: casegoods furniture, upholstered furniture and all other. The Company's casegoods product categories include accents, home office, dining, bedroom and home entertainment furniture under the Hooker Furniture brand. Its residential upholstered seating companies include Bradington-Young, which is engaged in upscale motion and stationary leather furniture, and Sam Moore Furniture, which is engaged in upscale occasional chairs, settees, sofas and sectional seating with a focus on cover-to-frame customization. It also markets a line of imported leather upholstery under the Hooker Upholstery trade name. All other segment operates under the H Contract and Homeware brands.

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.

SECTOR: PASS SECTOR: PASS
SALES: PASS SALES: FAIL
CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS

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

SNAP-ON INCORPORATED (SNA) is a mid-cap value stock in the Appliance & Tool industry. The rating according to our strategy based on Benjamin Graham is 86% 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: Snap-on Incorporated is a manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions. The Company's segments include the Commercial & Industrial Group, the Snap-on Tools Group, the Repair Systems & Information Group, and Financial Services. The Commercial & Industrial Group consists of business operations serving a range of industrial and commercial customers, including customers in the aerospace, natural resources, government, power generation, transportation and technical education markets. The Snap-on Tools Group consists of business operations primarily serving vehicle service and repair technicians. The Repair Systems & Information Group consists of business operations serving other professional vehicle repair customers, primarily owners and managers of independent repair shops and original equipment manufacturer (OEM) dealership service and repair shops. Financial Services consists of the business operations of its finance subsidiaries.

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.

SECTOR: PASS SECTOR: PASS SECTOR: PASS
SALES: PASS SALES: FAIL SALES: PASS
CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: FAIL

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

TAPESTRY INC (TPR) is a mid-cap value stock in the Apparel/Accessories industry. The rating according to our strategy based on Benjamin Graham is 86% 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: Tapestry, Inc., formerly Coach, Inc., is a design house of luxury accessories and lifestyle collections. The Company's product offering uses a range of leathers, fabrics and materials. The Company's brands include Coach, Kate Spade, and Stuart Weitzman. Its segments include North America, International and Stuart Weitzman. The North America segment includes sales of Tapestry brand products to North American customers through Tapestry-operated stores (including the Internet) and sales to North American wholesale customers. The International segment operates department store concession shop-in-shop locations and retail and outlet stores, as well as e-commerce Websites. The Stuart Weitzman segment includes sales across the world generated by the Stuart Weitzman brand, primarily through department stores in North America and international locations, and within Stuart Weitzman operated stores (including the Internet) in the United States, Canada and Europe.

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.

SECTOR: PASS SECTOR: PASS SECTOR: PASS SECTOR: PASS
SALES: PASS SALES: FAIL SALES: PASS SALES: PASS
CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: FAIL
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: FAIL PRICE/BOOK RATIO: PASS

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

ACUITY BRANDS, INC. (AYI) is a mid-cap value stock in the Furniture & Fixtures industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Acuity Brands, Inc. is a provider of lighting solutions for commercial, institutional, industrial, infrastructure and residential applications throughout North America. The Company offers a portfolio of indoor and outdoor lighting and building management solutions for commercial, industrial, infrastructure and residential applications. The portfolio of lighting solutions include lighting products utilizing fluorescent, light emitting diode (LED), organic LED (OLED), high intensity discharge, metal halide, and incandescent light sources to illuminate a number of applications. The solutions portfolio of the Company includes modular wiring, LED drivers, sensors, glass and inverters sold primarily to original equipment manufacturers (OEMs). Its lighting and building management solutions are marketed under various brand names, including Lithonia Lighting and Holophane. Through its subsidiary, IOTA Engineering, L.L.C., the Company provides emergency lighting products and power 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.

SECTOR: PASS SECTOR: PASS SECTOR: PASS SECTOR: PASS SECTOR: PASS
SALES: PASS SALES: FAIL SALES: PASS SALES: PASS SALES: PASS
CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: FAIL LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: FAIL
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: FAIL PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: FAIL

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

Since its inception, Validea's strategy based on Benjamin Graham has returned 354.73% vs. 186.40% for the S&P 500. For more details on this strategy, click here

About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.

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.