The following are the top rated Financial stocks according to Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
ERIE INDEMNITY CO (ERIE) is a large-cap growth stock in the Insurance (Prop. & Casualty) industry. The rating according to our strategy based on Warren Buffett is 72% 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: Erie Indemnity Company serves as the attorney-in-fact for the subscribers at the Erie Insurance Exchange (Exchange). The Exchange is a reciprocal insurer that writes property and casualty insurance. The Exchange has wholly owned property and casualty subsidiaries, including Erie Insurance Company, Erie Insurance Company of New York, Erie Insurance Property & Casualty Company, and Flagship City Insurance Company. The Exchange also has a wholly owned life insurance company, Erie Family Life Insurance Company (EFL). Its primary function as attorney-in-fact is to perform policy issuance and renewal services on behalf of the subscribers at the Exchange. It also acts as attorney-in-fact on behalf of the subscribers at the Exchange with respect to all claims handling and investment management services, as well as the service provider for all claims handling, life insurance and investment management services for the Exchange's insurance subsidiaries (collectively, administrative services).
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.
| EARNINGS PREDICTABILITY: | PASS |
| RETURN ON EQUITY: | PASS |
| RETURN ON ASSETS: | PASS |
| FREE CASH FLOW: | PASS |
| USE OF RETAINED EARNINGS: | PASS |
| SHARE REPURCHASE: | PASS |
| INITIAL RATE OF RETURN: | FAIL |
| EXPECTED RETURN: | FAIL |
Detailed Analysis of ERIE INDEMNITY CO
COASTAL FINANCIAL CORP (EVERETT) (CCB) is a small-cap growth stock in the Money Center Banks industry. The rating according to our strategy based on Warren Buffett is 72% 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: Coastal Financial Corporation is the bank holding company that operates through its subsidiaries, including Coastal Community Bank (Bank) and Arlington Olympic LLC. The Company operates through three segments: CCBX, the Community Bank and treasury & administration. The CCBX segment provides banking as a service (BaaS) activities that allows its broker-dealer and digital financial service partners to offer their customers banking services. It offers a variety of loans to business owners, including commercial and industrial loans and commercial real estate loans secured by owner-occupied commercial properties. The Community Bank segment provides a range of banking products and services to consumers and small to medium sized businesses in the broader Puget Sound region in the state of Washington and through the Internet and its mobile banking application. The treasury and administration segment includes treasury management, overall administration and all other aspects of the Company.
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.
| EARNINGS PREDICTABILITY: | PASS |
| RETURN ON EQUITY: | FAIL |
| RETURN ON ASSETS: | FAIL |
| FREE CASH FLOW: | PASS |
| USE OF RETAINED EARNINGS: | PASS |
| SHARE REPURCHASE: | PASS |
| INITIAL RATE OF RETURN: | PASS |
| EXPECTED RETURN: | PASS |
Detailed Analysis of COASTAL FINANCIAL CORP (EVERETT)
LAKELAND FINANCIAL CORPORATION (LKFN) is a small-cap growth stock in the Money Center Banks industry. The rating according to our strategy based on Warren Buffett is 63% 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: Lakeland Financial Corporation is a bank holding company, which provides, through its subsidiary Lake City Bank (the Bank), a range of financial products and services throughout its Northern and Central Indiana markets. The Company offers commercial and consumer banking services, as well as trust and wealth management, brokerage, and treasury management commercial services. The Company serves a diverse customer base, including commercial customers across a variety of industries including, among others, commercial real estate, manufacturing, agriculture, construction, retail, wholesale, finance and insurance, accommodation and food services and healthcare. The Bank has approximately 53 offices in 15 counties, including 46 offices in northern Indiana and seven offices in central Indiana, in the Indianapolis market. The Bank's deposits are insured by the Federal Deposit Insurance Corporation (the FDIC) to the maximum extent provided under federal law and FDIC regulations.
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.
| EARNINGS PREDICTABILITY: | PASS |
| RETURN ON EQUITY: | PASS |
| RETURN ON ASSETS: | PASS |
| FREE CASH FLOW: | PASS |
| USE OF RETAINED EARNINGS: | FAIL |
| SHARE REPURCHASE: | NEUTRAL |
| INITIAL RATE OF RETURN: | PASS |
| EXPECTED RETURN: | FAIL |
Detailed Analysis of LAKELAND FINANCIAL CORPORATION
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.
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.
