Markets

Validea's Top Five Consumer Cyclical Stocks Based On Kenneth Fisher - 10/27/2019

The following are the top rated Consumer Cyclical stocks according to Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.

HAVERTY FURNITURE COMPANIES, INC. (HVT) is a small-cap growth stock in the Furniture & Fixtures industry. The rating according to our strategy based on Kenneth Fisher 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: Haverty Furniture Companies, Inc. is a retailer of residential furniture and accessories. The Company sells home furnishings in its retail stores and through its Website, havertys.com. As of December 31, 2016, the Company had 124 stores in 16 states in the Southern and Midwest regions. As of December 31, 2016, the Company's retail store space totaled approximately 4.5 million square feet for 124 stores. It also offers financing through a third-party finance company, as well as an internal revolving charge credit plan. The Company's retail locations are operated using the Havertys name. It offers mattress product lines, such as Sealy, Tempur-Pedic, Serta, Stearns & Foster and Beautyrest Black. The Company's customers are college educated women in middle to upper-middle income households. The Company stores are located in areas, including Florida, Texas, North Carolina, Tennessee and Maryland.

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.

PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: PASS
FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL

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

IROBOT CORPORATION (IRBT) is a small-cap growth stock in the Appliance & Tool industry. The rating according to our strategy based on Kenneth Fisher 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: iRobot Corporation is a consumer robot company, which is engaged in designing and building robots. The Company's portfolio of solutions features various technologies for the connected home and various concepts in mapping, navigation, mobility and artificial intelligence. The Company sells various products that are designed for use at home. Its consumer products focus on both indoor and outdoor cleaning applications. The Company offers multiple Roomba floor vacuuming robots. Roomba's design allows it to clean under kick boards, beds and other furniture. It offers the Braava family of automatic floor mopping robots designed for hard surface floors. The Roomba 600 series robots offer a three-stage cleaning system. The iRobot HOME Application helps users to choose cleaning options for their home. Its Mirra Pool Cleaning Robot is used to clean residential pools. The Company's trademarks include Scooba, ViPR, NorthStar, Create, iAdapt, Aware, Home Base, Looj, Braava, vSLAM and Virtual Wall.

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.

PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: PASS
FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: PASS

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

JOHNSON OUTDOORS INC. (JOUT) is a small-cap value stock in the Recreational Products industry. The rating according to our strategy based on Kenneth Fisher 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: Johnson Outdoors Inc. is a manufacturer and marketer of branded seasonal, outdoor recreation products. The Company operates through four segments: Marine Electronics, Outdoor Equipment, Watercraft and Diving. Its Marine Electronics segment's brands are Minn Kota, Humminbird and Cannon. Its Outdoor Equipment segment's brands are Eureka!, Jetboil and Silva. Its Watercraft segment designs and markets Necky sea touring kayaks; sit on top Ocean Kayaks, and Old Town canoes and kayaks for family recreation, touring, angling and tripping. The Company manufactures and markets underwater diving products for recreational divers, which it sells and distributes under the SCUBAPRO brand name. It markets a line of underwater diving and snorkeling equipment, including regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels and accessories. The Company's products are used for fishing from a boat, diving, paddling, hiking and camping.

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.

PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL
LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: PASS
FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: PASS

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 Kenneth Fisher 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: 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.

PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: FAIL
FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: PASS

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

OSHKOSH CORP (OSK) is a mid-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Kenneth Fisher 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: Oshkosh Corp is a designer, manufacturer and marketer of a broad range of engineered specialty vehicles and vehicle bodies. The Company operates through four segments: access equipment, defense, fire & emergency and commercial. Access equipment segment designs and manufactures aerial work platforms and telehandlers used in a wide variety of construction, industrial, institutional and general maintenance applications and also manufactures towing and recovery equipment in the United States. Defense segment manufactures heavy, medium, and light tactical wheeled vehicles. Fire & emergency segment designs and manufactures fire apparatus assembled on custom chassis, aircraft rescue and firefighting vehicles to domestic and international airports and broadcast and communication vehicles. Commercial segment designs and manufactures front- and rear-discharge concrete mixers and portable and stationary concrete batch plants, refuse collection vehicles and field service vehicles.

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.

PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS
TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS TOTAL DEBT/EQUITY RATIO: PASS
PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS PRICE/RESEARCH RATIO: PASS
PRICE/SALES RATIO: PASS PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: FAIL PRICE/SALES RATIO: PASS PRICE/SALES RATIO: PASS
LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: PASS LONG-TERM EPS GROWTH RATE: FAIL LONG-TERM EPS GROWTH RATE: PASS
FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS FREE CASH PER SHARE: PASS
THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL THREE YEAR AVERAGE NET PROFIT MARGIN: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: PASS THREE YEAR AVERAGE NET PROFIT MARGIN: FAIL

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

Since its inception, Validea's strategy based on Kenneth Fisher has returned 391.10% vs. 204.05% for the S&P 500. For more details on this strategy, click here

About Kenneth Fisher: The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.

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.