The following are the top rated Financial stocks according to Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
JPMORGAN CHASE & CO (JPM) is a large-cap value stock in the Investment Services industry. The rating according to our strategy based on Peter Lynch is 98% 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: JPMorgan Chase & Co. is a financial holding company. It has four segments: Consumer & Community Banking (CCB), Corporate & Investment Bank (CIB), Commercial Banking (CB), and Asset & Wealth Management (AWM). CCB segment offers products and services to consumers and small businesses through bank branches, ATMs, digital (including mobile and online) and telephone banking. CIB segment consists of banking and markets and securities services, and offers a suite of investment banking, market-making, prime brokerage, lending, and treasury and securities products and services to a global client base of corporations, investors, financial institutions, merchants, government and municipal entities. CB segment provides financial solutions, including lending, payments, investment banking and asset management products across three primary client segments: Middle Market Banking, Corporate Client Banking and Commercial Real Estate Banking. AWM segment offers investment and wealth management 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.
| YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: | PASS |
| EARNINGS PER SHARE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | NEUTRAL |
| EQUITY/ASSETS RATIO: | PASS |
| RETURN ON ASSETS: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | BONUS PASS |
Detailed Analysis of JPMORGAN CHASE & CO
CHUBB LTD (CB) is a large-cap value stock in the Insurance (Prop. & Casualty) industry. The rating according to our strategy based on Peter Lynch is 93% 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: Chubb Limited is a Switzerland-based holding company. The Company, through its subsidiaries, provides a range of insurance and reinsurance products and services to clients around the world. Its segments include North America Commercial property and casualty (P&C) Insurance, North America Personal P&C Insurance, North America Agricultural Insurance, Overseas General Insurance, Global Reinsurance and Life Insurance. It offers commercial insurance products and service offerings, such as risk management programs, loss control, and engineering and complex claims management. It provides specialized insurance products to areas, such as aviation and energy. It also offers personal lines insurance coverage, including homeowners, automobile, valuables, umbrella liability and recreational marine products. In addition, it supplies personal accident, supplemental health and life insurance to individuals in select countries.
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/GROWTH RATIO: | PASS |
| SALES AND P/E RATIO: | PASS |
| EPS GROWTH RATE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | NEUTRAL |
| EQUITY/ASSETS RATIO: | PASS |
| RETURN ON ASSETS: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of CHUBB LTD
CREDICORP LTD. (USA) (BAP) is a large-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Peter Lynch is 93% 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: Credicorp Ltd is a Peru-based financial services holding company. The Company is organized into four lines of business: Universal Banking, Insurance and Pensions that mainly serve the overall Peruvian market, Microfinance and Investment Banking and Wealth Management that have a strong presence in Latin America. The Company has leveraged its franchises and has consolidated into a Group with more than 36,000 employees and operations mainly in six countries: Peru, Bolivia, Colombia, Chile, Panama and the United States.
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/GROWTH RATIO: | PASS |
| SALES AND P/E RATIO: | PASS |
| EPS GROWTH RATE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | NEUTRAL |
| EQUITY/ASSETS RATIO: | PASS |
| RETURN ON ASSETS: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of CREDICORP LTD. (USA)
ASSURANT INC (AIZ) is a mid-cap value stock in the Insurance (Prop. & Casualty) industry. The rating according to our strategy based on Peter Lynch is 91% 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: Assurant, Inc. is a global business services company, which supports, protects, and connects consumer purchases. The Company operates in North America, Latin America, Europe, and Asia Pacific through two segments: Global Lifestyle and Global Housing. The Global Lifestyle segment consists of Connected Living, which provides mobile device solutions, extended service contracts and related services for consumer electronics and appliances, and credit and other insurance products, as well as iSmash, a provider of mobile device solutions, and Global Automotive, which offers vehicle protection services, commercial equipment services and other related services. Through its Global Housing segment, it provides lender-placed homeowners, manufactured housing and flood insurance, as well as voluntary manufactured housing, condominium and homeowners insurance (Homeowners), and renters insurance and other products (Renters and Other).
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/GROWTH RATIO: | PASS |
| SALES AND P/E RATIO: | PASS |
| EPS GROWTH RATE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | NEUTRAL |
| EQUITY/ASSETS RATIO: | PASS |
| RETURN ON ASSETS: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of ASSURANT INC
AMERICAN FINANCIAL GROUP INC (AFG) is a large-cap value stock in the Insurance (Prop. & Casualty) industry. The rating according to our strategy based on Peter Lynch is 91% 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: American Financial Group, Inc. is an insurance holding company. The Company is engaged in property and casualty insurance, focusing on specialized commercial products for businesses. The Company operates through two segments: Property and casualty insurance and Other. Property and casualty insurance business includes specialty sub-segments: Property and transportation, which includes physical damage and liability coverage for buses and trucks and other specialty transportation niches, inland and ocean marine, agricultural-related products and other commercial property coverages; Specialty casualty, which includes primarily excess and surplus, executive and professional liability, general liability, umbrella and excess liability, and Specialty financial, which includes risk management insurance programs for lending and leasing institutions (including equipment leasing and collateral and lender-placed mortgage property insurance), fidelity and surety products and trade credit insurance.
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.
| YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: | PASS |
| EARNINGS PER SHARE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | NEUTRAL |
| EQUITY/ASSETS RATIO: | PASS |
| RETURN ON ASSETS: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of AMERICAN FINANCIAL GROUP INC
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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.
