The following are today's upgrades for Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.
RESOLUTE FOREST PRODUCTS INC (RFP) is a small-cap value stock in the Paper & Paper Products industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% 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: Resolute Forest Products Inc. owns and operates in the forest products industry that offers a range of forest products, including market pulp, tissue, wood products, papers and paper calculation tools. The Company produces lumber in the United States and Canada and is a producer of wood products east of the Canadian Rockies. The Company's segments include market pulp, tissue, wood products, and paper. In addition, the Company is a producer of uncoated mechanical papers and pulp in North America. The Company is also a producer of newsprint and tissue producer. The Company owns and operates approximately 40 facilities, as well as power generation assets, in the United States and Canada.
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.
| SECTOR: | PASS |
| SALES: | PASS |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | FAIL |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | PASS |
Detailed Analysis of RESOLUTE FOREST PRODUCTS INC
MUELLER INDUSTRIES, INC. (MLI) is a mid-cap value stock in the Misc. Fabricated Products industry. The rating according to our strategy based on Benjamin Graham changed from 71% to 86% 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: Mueller Industries, Inc. is a manufacturer of copper, brass, aluminum, and plastic products. The Company operates through three segments: Piping Systems, Industrial Metals and Climate. The Piping Systems segment consists of Domestic Piping Systems Group, Great Lakes Copper, Pexcor Manufacturing Company and Heatlink Group Inc., Die-Mold Tool Limited, European Operations, Trading Group, and Jungwoo Metal Ind. Co., LTD. The Domestic Piping Systems Group manufactures and distributes copper tube, fittings, line sets, and pipe nipples, and resells steel pipe, brass and plastic plumbing valves, malleable iron fittings and faucets, and plumbing specialties. The Industrial Metals segment consists of Brass Rod & Copper Bar Products, Impacts & Micro Gauge, and Brass Value-Added Products. The Climate segment consists of Refrigeration Products, Fabricated Tube Products, Westermeyer Industries, Inc., Turbotec Products, Inc., ATCO Rubber Products, Inc., Linesets, Inc., and Shoals Tubular, Inc.
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.
| SECTOR: | PASS |
| SALES: | PASS |
| CURRENT RATIO: | PASS |
| LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: | PASS |
| LONG-TERM EPS GROWTH: | PASS |
| P/E RATIO: | PASS |
| PRICE/BOOK RATIO: | FAIL |
Detailed Analysis of MUELLER INDUSTRIES, INC.
More details on Validea's Benjamin Graham strategy
About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.
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.
