The following are today's upgrades for Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
HELEN OF TROY LIMITED (HELE) is a small-cap value stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% 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: Helen of Troy Limited is a global consumer products company. The Company offers products and solutions for its customers through a diversified portfolio of brands, including OXO, Hydro Flask, Osprey, Vicks, Braun, Honeywell, PUR, Hot Tools, and Drybar. It operates in two business segments: Home and Outdoor and Beauty and Wellness. The Home and Outdoor segment provides a range of consumer products for home activities, such as food preparation and storage, cooking, cleaning, organization, and beverage service; as well as products for outdoor and on the go activities such as hydration, food storage, backpacks, and travel gear. This segment sells primarily to retailers as well as through its direct-to-consumer channel. The Beauty and Wellness segment provides beauty and wellness products including hair styling appliances, grooming tools, and liquid and aerosol personal care products, and wellness devices including thermometers, water and air filtration systems, humidifiers, and fans.
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 YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of HELEN OF TROY LIMITED
LANTHEUS HOLDINGS INC (LNTH) is a mid-cap growth stock in the Medical Equipment & Supplies industry. The rating according to our strategy based on Joel Greenblatt changed from 10% to 80% 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: Lantheus Holdings, Inc. is a radiopharmaceutical-focused company engaged in delivering science to enable clinicians to find, fight and follow disease to deliver patient outcomes. The Company classifies its products in three categories: Radiopharmaceutical Oncology, Precision Diagnostics, and Strategic Partnerships. Its Radiopharmaceutical Oncology diagnostics and therapeutic candidates help healthcare professionals (HCPs) find, fight, and follow cancer, with a focus in prostate cancer. Its pipeline also includes breast and other cancers. Its Precision Diagnostic products assist HCPs to find and follow diseases, with a focus in cardiology. Its Strategic Partnerships focus on enabling precision medicine through the use of biomarkers, digital solutions and pharma solutions platforms. Its commercial products include PYLARIFY, DEFINITY, Ga-DOTA-RM2, and others. Its pipeline includes B amyloid positron emission tomography (PET) imaging agent, NAV-4694, also known as F18-flutafuranol.
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 YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of LANTHEUS HOLDINGS INC
BIDVEST GROUP LTD - ADR (BDVSY) is a mid-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% 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: The Bidvest Group Limited is a South African services, trading, and distribution company. Its diversified portfolio operates in two segments: Business services and trading and distribution through seven divisions and a subsidiary, Adcock Ingram. Its division consists of Services International, Branded Products, Freight, Commercial Products, Services South Africa, Automotive, and Financial Services. Adcock Ingram manufactures, markets and distributes a range of healthcare products. The Services International division offers a range of corporate outsourced services. The Branded Products division is a distributor, supplier and manufacturer of a comprehensive suite of office products and services and branded household appliances as well as a provider of outsourced customer communication services. The Freight division facilitates the storage, handling and movement of cargo through its independent terminal operations, international clearing and forwarding, logistics, and marine 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 YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of BIDVEST GROUP LTD - ADR
TOPBUILD CORP (BLD) is a large-cap growth stock in the Construction Services industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 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: TopBuild Corp. is an installer and specialty distributor of insulation and related building material products to the construction industry in the United States and Canada. The Company operates through two segments: Installation and Specialty Distribution. The Installation segment installs insulation and other building products. It installs other building products, including glass and windows, rain gutters, garage doors, closet shelving, and fireplaces. Its Installation customer base includes national and regional single-family homebuilders, single-family custom builders, and individual homeowners. This segment operates approximately 240 branches located across the United States. The Specialty Distribution segment distributes building and mechanical insulation, insulation accessories, rain gutters and other building product materials for the residential and commercial/industrial end markets. The Company's customer base consists of insulation contractors of various sizes.
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 YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | PASS |
Detailed Analysis of TOPBUILD CORP
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
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.
