Markets

Validea's Top Five Consumer Cyclical Stocks Based On Joseph Piotroski - 7/28/2019

The following are the top rated Consumer Cyclical stocks according to Validea's Book/Market Investor model based on the published strategy of Joseph Piotroski. This value-quant strategy screens for high book-to-market stocks, and then separates out financially sound firms by looking at a host of improving financial criteria.

GOODYEAR TIRE & RUBBER CO (GT) is a mid-cap value stock in the Tires industry. The rating according to our strategy based on Joseph Piotroski is 90% 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: The Goodyear Tire & Rubber Company is a manufacturer of tires. The Company operates through three segments. The Americas segment develops, manufactures, distributes and sells tires and related products and services in North, Central and South America, and sells tires to various export markets. The Americas segment manufactures and sells tires for automobiles, trucks, buses, earthmoving, mining and industrial equipment, aircraft and for various other applications. The Europe, the Middle East and Africa (EMEA) segment develops, manufactures, distributes and sells tires for automobiles, trucks, buses, aircraft, motorcycles, and earthmoving, mining and industrial equipment throughout EMEA under the Goodyear, Dunlop, Debica, Sava and Fulda brands. The Asia Pacific segment develops, manufactures, distributes and sells tires for automobiles, trucks, aircraft, farm, and earthmoving, mining and industrial equipment throughout the Asia Pacific region, and sells tires to various export 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.

BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: 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 Joseph Piotroski is 80% 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.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: FAIL
CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS

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

DAIMLER AG (DDAIF) is a large-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Joseph Piotroski 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: Daimler AG (Daimler) is an automotive engineering company. The Company is engaged in the development, production and distribution of cars, trucks and vans in Germany, and the management of the Daimler Group. Daimler's segments include Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services. The Mercedes-Benz Cars segment includes vehicles of the Mercedes-Benz brand, including the brands, Mercedes-AMG and Mercedes-Maybach, as well as the Mercedes me brand. The Daimler Trucks segment develops and produces vehicles under the brands, including Mercedes-Benz, Freightliner, Western Star, FUSO and BharatBenz. The Mercedes-Benz Vans segment is a supplier of a range of vans and associated services. The Daimler Buses segment sells completely built-up buses under brand names, including MercedesBenz and Setra. The Daimler Financial Services segment supports the sales of its automotive brands in approximately 40 countries around the world.

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.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: FAIL CASH COMPARED TO NET INCOME: FAIL
CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS
CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: PASS
CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: FAIL

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

FOSSIL GROUP INC (FOSL) is a small-cap growth stock in the Jewelry & Silverware industry. The rating according to our strategy based on Joseph Piotroski 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: Fossil Group, Inc. is a design, marketing and distribution company that specializes in consumer fashion accessories. The Company's segments include Americas, Europe and Asia. Each segment includes sales to wholesale and distributor customers, and sales through the Company-owned retail stores and e-commerce activities based on the location of the selling entity. The Americas segment includes sales to customers based in Canada, Latin America and the United States. The Europe segment includes sales to customers based in European countries, the Middle East and Africa. The Asia segment includes sales to customers based in Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan and Thailand. The Company's principal offerings include a line of men's and women's fashion watches and jewelry, handbags, small leather goods, belts, sunglasses and soft accessories.

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.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: FAIL
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: FAIL CHANGE IN RETURN ON ASSETS: PASS
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: FAIL CASH COMPARED TO NET INCOME: FAIL CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: FAIL
CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: FAIL CHANGE IN ASSET TURNOVER: FAIL

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

AT HOME GROUP INC (HOME) is a small-cap value stock in the Furniture & Fixtures industry. The rating according to our strategy based on Joseph Piotroski 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: At Home Group, Inc. is a home decor superstore. The Company is focused on providing a range of assortment of products for any room, in any style, for any budget. As of July 30, 2016, the Company offered over 50,000 stock keeping units (SKUs) throughout its stores. As of July 30, 2016, the Company's store base is consisted of 115 format stores across 29 states and 65 markets, averaging approximately 120,000 square feet per store.

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.

BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS BOOK/MARKET RATIO: PASS
RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: PASS RETURN ON ASSETS: FAIL RETURN ON ASSETS: PASS
CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: FAIL CHANGE IN RETURN ON ASSETS: PASS CHANGE IN RETURN ON ASSETS: FAIL
CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS CASH FLOW FROM OPERATIONS: PASS
CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: FAIL CASH COMPARED TO NET INCOME: FAIL CASH COMPARED TO NET INCOME: PASS CASH COMPARED TO NET INCOME: PASS
CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS CHANGE IN LONG TERM DEBT/ASSETS PASS
CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: PASS CHANGE IN CURRENT RATIO: FAIL CHANGE IN CURRENT RATIO: FAIL
CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: PASS CHANGE IN SHARES OUTSTANDING: FAIL CHANGE IN SHARES OUTSTANDING: FAIL
CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: FAIL CHANGE IN GROSS MARGIN: PASS CHANGE IN GROSS MARGIN: PASS
CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: PASS CHANGE IN ASSET TURNOVER: FAIL CHANGE IN ASSET TURNOVER: FAIL CHANGE IN ASSET TURNOVER: FAIL

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

Since its inception, Validea's strategy based on Joseph Piotroski has returned 137.10% vs. 164.28% for the S&P 500. For more details on this strategy, click here

About Joseph Piotroski: Piotroski isn't your typical Wall Street big shot. In fact, he's not even a professional investor. He's a good old numbers-crunching accountant and college professor. But in 2000, shortly after he started teaching at the University of Chicago's Graduate School of Business, Piotroski published a groundbreaking paper in the Journal of Accounting Research entitled "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers". In it, Piotroski laid out an accounting-based stock-selection/shorting method that produced a 23 percent average annual back-tested return from 1976 through 1996 -- more than double the S&P 500's gain during that time. Piotroski's findings were reported in major financial publiations like SmartMoney. Today, he teaches accounting at Stanford University's Graduate School of Business.

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.