Markets

Validea's Top Five Consumer Cyclical Stocks Based On David Dreman - 7/28/2019

The following are the top rated Consumer Cyclical stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.

GENERAL MOTORS COMPANY (GM) is a large-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on David Dreman is 76% 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: General Motors Company designs, builds and sells cars, trucks, crossovers and automobile parts. The Company's segments include GM North America (GMNA), GM Europe (GME), GM International Operations (GMIO), GM South America (GMSA) and General Motors Financial Company, Inc. (GM Financial). The Company provides automotive financing services through General Motors Financial Company, Inc. The Company develops, manufactures and/or markets vehicles in North America under the brands, including Buick, Cadillac, Chevrolet and GMC. The Company also develops, manufactures and/or markets vehicles outside North America under the brands, including Buick, Cadillac, Chevrolet, GMC, Holden, Opel and Vauxhall. The Company offers a range of after-sale vehicle services and products through the dealer network, such as maintenance, light repairs, collision repairs, vehicle accessories and extended service warranties. GM Financial is an automotive finance company, which provides automobile finance solutions.

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.

MARKET CAP: PASS
EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: FAIL
PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: FAIL
YIELD: PASS
LOOK AT THE TOTAL DEBT/EQUITY: FAIL

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

MAGNA INTERNATIONAL INC. (USA) (MGA) is a large-cap value stock in the Auto & Truck Parts industry. The rating according to our strategy based on David Dreman is 76% 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: Magna International Inc. (Magna) is a global automotive supplier. The Company's segments are North America, Europe, Asia, Rest of World, and Corporate and Other. The Company's product capabilities include producing body, chassis, exterior, seating, powertrain, electronic, active driver assistance, vision, closure, and roof systems and modules, as well as vehicle engineering and contract manufacturing. The Company has over 320 manufacturing operations and approximately 100 product development, engineering and sales centers in over 30 countries. It provides a range of body, chassis and engineering solutions to its original equipment manufacturer (OEM) customers. It has capabilities in powertrain design, development, testing and manufacturing. It offers bumper fascia systems, exterior trim and modular systems. It offers exterior and interior mirror systems. It offers sealing, trim, engineered glass and module systems. It offers softtops, retractable hardtops, modular tops and hardtops.

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.

MARKET CAP: PASS MARKET CAP: PASS
EARNINGS TREND: PASS EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: FAIL CURRENT RATIO: FAIL
PAYOUT RATIO: PASS PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: FAIL PRE-TAX PROFIT MARGINS: PASS
YIELD: PASS YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: FAIL LOOK AT THE TOTAL DEBT/EQUITY: PASS

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

SONY CORP (ADR) (SNE) is a large-cap value stock in the Audio & Video Equipment industry. The rating according to our strategy based on David Dreman is 69% 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: Sony Corporation is engaged in the development, design, production, manufacture and sale of various kinds of electronic equipment, instruments and devices for consumer, professional and industrial markets such as network services, game hardware and software, televisions, audio and video recorders and players, still and video cameras, mobile phones, and semiconductors. The Company engages in the development, production, manufacture, and distribution of recorded music and the management and licensing of the words and music of songs as well as the production and distribution of animation titles, including game applications based on animation titles. It also engages in motion pictures and television programming and television and digital networks business, and various financial services businesses. It includes Mobile Communications, Game & Network Services, Music, Films, Home Entertainment & Sound, Imaging Products & Solutions, Semiconductors, Financial Services and All Other segments.

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.

MARKET CAP: PASS MARKET CAP: PASS MARKET CAP: PASS
EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: FAIL
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS
PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS
PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: FAIL CURRENT RATIO: FAIL CURRENT RATIO: FAIL
PAYOUT RATIO: PASS PAYOUT RATIO: PASS PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: FAIL PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS
YIELD: PASS YIELD: FAIL YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: FAIL LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: FAIL

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

ALLISON TRANSMISSION HOLDINGS INC (ALSN) is a mid-cap value stock in the Auto & Truck Parts industry. The rating according to our strategy based on David Dreman is 64% 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: Allison Transmission Holdings, Inc. and its subsidiaries design and manufacture commercial and defense fully-automatic transmissions. The Company manufactures fully-automatic transmissions for medium- and heavy-duty commercial vehicles, and medium-and heavy-tactical United States defense vehicles. The Company's transmissions are used in a range of applications, including on-highway trucks (distribution, refuse, construction, fire and emergency), buses (primarily school, transit and hybrid-transit), motorhomes, off-highway vehicles and equipment (energy, mining and construction) and defense vehicles (wheeled and tracked). The Company's transmissions are sold under the Allison Transmission brand name and remanufactured transmissions are sold under the ReTran brand name. The Company has developed over 100 different models that were used in more than 2,500 different vehicle configurations and were compatible with over 500 combinations of engines, as of December 31, 2016.

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.

MARKET CAP: PASS MARKET CAP: PASS MARKET CAP: PASS MARKET CAP: PASS
EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: FAIL EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: FAIL
PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: FAIL CURRENT RATIO: FAIL CURRENT RATIO: FAIL CURRENT RATIO: PASS
PAYOUT RATIO: PASS PAYOUT RATIO: PASS PAYOUT RATIO: PASS PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: FAIL PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS
YIELD: PASS YIELD: FAIL YIELD: FAIL YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: FAIL LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: FAIL LOOK AT THE TOTAL DEBT/EQUITY: PASS

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

ACUITY BRANDS, INC. (AYI) is a mid-cap growth stock in the Furniture & Fixtures industry. The rating according to our strategy based on David Dreman is 64% 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.

MARKET CAP: PASS MARKET CAP: PASS MARKET CAP: PASS MARKET CAP: PASS MARKET CAP: PASS
EARNINGS TREND: PASS EARNINGS TREND: PASS EARNINGS TREND: FAIL EARNINGS TREND: PASS EARNINGS TREND: PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: FAIL EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: FAIL P/E RATIO: FAIL
PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: PASS PRICE/CASH FLOW (P/CF) RATIO: FAIL PRICE/CASH FLOW (P/CF) RATIO: FAIL
PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL PRICE/BOOK (P/B) VALUE: FAIL
PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL PRICE/DIVIDEND (P/D) RATIO: FAIL
CURRENT RATIO: FAIL CURRENT RATIO: FAIL CURRENT RATIO: FAIL CURRENT RATIO: PASS CURRENT RATIO: PASS
PAYOUT RATIO: PASS PAYOUT RATIO: PASS PAYOUT RATIO: PASS PAYOUT RATIO: PASS PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS RETURN ON EQUITY: PASS
PRE-TAX PROFIT MARGINS: FAIL PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS PRE-TAX PROFIT MARGINS: PASS
YIELD: PASS YIELD: FAIL YIELD: FAIL YIELD: FAIL YIELD: FAIL
LOOK AT THE TOTAL DEBT/EQUITY: FAIL LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: FAIL LOOK AT THE TOTAL DEBT/EQUITY: PASS LOOK AT THE TOTAL DEBT/EQUITY: PASS

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

Since its inception, Validea's strategy based on David Dreman has returned 97.98% vs. 204.38% for the S&P 500. For more details on this strategy, click here

About David Dreman: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.

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.