Validea Peter Lynch Strategy Daily Upgrade Report – 6/7/2022

JHere are today’s updates for Validea’s P/E/Growth Investor Model based on Peter Lynch’s published strategy. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also have strong balance sheets.

REX AMERICAN RESOURCES CORP (REX) is a small-cap value stock in the chemical manufacturing industry. The rating under our Peter Lynch-based strategy increased from 0% to 80% depending on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: REX American Resources Corporation is a holding company. The Company operates through the ethanol and by-products segment. Its ethanol business is focused on corn, ethanol, distillers grains, non-food grade corn oil and natural gas. It has interests in more than six ethanol production facilities, which in total have shipped approximately 699 million gallons of ethanol. The Company owns the gallons shipped from the ethanol production facilities, which holds interests in approximately 282 million gallons. The Company operates through its subsidiaries, including One Earth Energy, LLC (One Earth), NuGen Energy, LLC (NuGen) and Big River Resources, LLC (Big River). Its ethanol industry consists of approximately 208 plants in more than 25 states with an annual capacity of approximately 17.7 billion gallons of ethanol production in the United States. The company owns approximately one billion gallons which are exported from the United States.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

SALES INVENTORY: PASS
ADJUSTED RETURN-TO-GROWTH (PEG) P/E RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE MOVEMENT OF CAPITAL: NEUTRAL
NET CASH : BONUS PASS

Detailed analysis of REX AMERICAN RESOURCES CORP

Complete Guru Analysis for REX

Full Factor Report for REX

VALUE LINE, INC. (VALUE) is a small-cap growth stock in the printing and publishing industry. The rating under our Peter Lynch-based strategy rose from 87% to 91% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: Value Line, Inc. (Value Line) is an investment research provider. The principal business of the Company is to produce investment periodicals and their underlying research and to make available to third parties certain copyrights, trademarks and Value Line rankings and other information, at third parties under written agreements for use in investment products managed and marketed by third parties and for other purposes. It also publishes a range of investment research in print and digital formats, including research in the areas of mutual funds, exchange-traded funds (ETFs) and options. The Company offers products such as Value Line Select, Value Line Special Situations, Value Line Select: ETFs, Value Line Select: Dividend Income & Growth, The New Value Line ETFs Service, The Value Line M&A Service, The Value Line Information that you must know. Wealth Newsletter, Value Line Climate Change Investing Service and certain Value Line copyrights.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE MOVEMENT OF CAPITAL: NEUTRAL
NET CASH : NEUTRAL

Detailed analysis of VALUE LINE, INC.

Full Guru Analysis for VALU

Full factor ratio for VALU

FMC CORP (FMC) is a large-cap growth stock in the chemical manufacturing sector. The rating under our Peter Lynch-based strategy increased from 72% to 74% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: FMC Corporation is an agricultural science company, providing solutions to growers with a product portfolio fueled by a market-driven pipeline of discovery and development in crop protection, crop improvement and professional pest management and grass. The company’s crop protection solutions, including biologics, crop nutrition, digital and precision agriculture. Its portfolio includes three categories of pesticides, including insecticides, herbicides and fungicides. Its insecticides are used to control a pest, while its herbicide portfolio is used to control weeds. Its herbicides are used in crop protection, including soybeans, corn, fruits and vegetables, cotton, sugar cane, rice and cereals. It also provides a plant health program, which includes organic crop protection products, seed treatments and micronutrients. Its product portfolio includes insect repellent products based on the active ingredients Rynaxypyr (Chlorantraniliprole) and Cyazypyr (Cyantraniliprole).

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: PASS
SALES INVENTORY: PASS
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE MOVEMENT OF CAPITAL: NEUTRAL
NET CASH : NEUTRAL

Detailed analysis of FMC CORP

Complete Guru Analysis for FMC

Full Factor Report for FMC

CAPRI HOLDINGS LTD (CPRI) is a mid-cap value stock in the apparel/accessories industry. The rating under our Peter Lynch-based strategy increased from 0% to 91% depending on the company’s underlying fundamentals and the stock’s valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: Capri Holdings Limited is a designer, marketer, distributor and retailer of branded women’s and men’s accessories, footwear and ready-to-wear, as well as wearable technology, watches, jewellery, eyewear and fragrances. The Company’s segments include Versace, Jimmy Choo and Michael Kors. The Versace segment is engaged in the sale of Versace products through retail stores (including concessions) and e-commerce sites, through wholesale doorways (including multi-brand stores). The Jimmy Choo and Michael Kors segments are also engaged in the sale of products through retail stores (including concessions) and e-commerce sites, through wholesale gateways (including multi-brand stores). The Company’s products are sold through the retail segment, including women’s apparel, accessories (which include handbags and small leather goods such as wallets), men’s apparel , footwear and licensed products, such as watches, jewelry, fragrance and beauty, and eyewear. It also offers wholesale products.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

SALES INVENTORY: PASS
ADJUSTED RETURN-TO-GROWTH (PEG) P/E RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: PASS
FREE MOVEMENT OF CAPITAL: NEUTRAL
NET CASH : NEUTRAL

Detailed analysis of CAPRI HOLDINGS LTD

Full Guru Analysis for CPRI

Full factor report for CPRI

More details on Validea’s Peter Lynch strategy

Peter Lynch Action Ideas

About Peter Lynch: Perhaps the greatest mutual fund manager of all time, Lynch guided Fidelity Investment’s Magellan Fund to an average annual return of 29.2% from 1977 until his retirement in 1990, nearly doubling the 15.8% annual return of the S&P 500 during this period. Lynch’s no-nonsense approach and quick wit have made him one of the most highly rated investors on Wall Street. (“Go for a business that any idiot can run – because sooner or later any idiot will probably run it,” is one of his many pearls of wisdom.) Lynch One’s bestseller Up on Wall Street is sort of a “stocks for the man/all the woman”, breaking down its approach into easy-to-understand concepts.

About Validea: Validea is an investment research service that tracks 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 on 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.

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