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.
LABORATORY CORP. OF AMERICA HOLDINGS (LH) is a large-cap value stock in the Healthcare Facilities 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: Laboratory Corporation of America Holdings is a global life sciences company. The Company provides information to help doctors, hospitals, pharmaceutical companies, researchers, and patients make decisions. Its segments include Labcorp Diagnostics (Dx) and Labcorp Drug Development (DD). The Dx segment is an independent clinical laboratory business. It offers a menu of frequently requested and specialty diagnostic tests through an integrated network of primary and specialty laboratories across the United States. In addition to diagnostic testing along with occupational and wellness testing for employers and forensic DNA analysis, Dx segment also offers a range of other testing services. The DD segment is a contract research organizations (CRO) business that provides end-to-end drug development services. The DD segment provides these services predominantly to pharmaceutical, biotechnology and medical device companies across the world. It serves clients in more than 100 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.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of LABORATORY CORP. OF AMERICA HOLDINGS
CHILDREN'S PLACE INC (PLCE) is a small-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 100% 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 Children's Place, Inc. is a children's specialty apparel retailer in North America. It provides apparel, footwear, accessories, and other items for children and tweens. The Company designs, contracts to manufacture, sells at retail and wholesale, and licenses to sell merchandise under The Children's Place, Place, Baby Place, Gymboree, and Sugar & Jade brand names. Its segments include The Children's Place U.S. and The Children's Place International. The Children's Place U.S. segment includes the U.S. and Puerto Rico-based stores. The Children's Place International segment includes Canadian-based stores, wholesale customers, as well as international franchisees. The Company serves the wardrobe needs of girls and boys (sizes 4-18), toddler girls and boys (sizes 6 months-5T), and baby (sizes 0-24 months). It has online stores at www.childrensplace.com, www.gymboree.com and www.sugarandjade.com. It operates approximately 672 stores in the United States, Canada, and Puerto Rico.
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 CHILDREN'S PLACE INC
PROPHASE LABS INC (PRPH) is a small-cap value stock in the Biotechnology & Drugs industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 100% 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: ProPhase Labs, Inc. is a diversified company that offers a range of services, including diagnostic testing, genomics testing and contract manufacturing. The Company operates through two segments: diagnostic services and consumer products. The diagnostic services segment provides COVID-19 diagnostic information services to a range of customers in the United States, including health plans, third-party payers and government organizations. The consumer products segment is engaged in the research, development, manufacture, distribution, marketing and sale of over-the-counter (OTC) consumer healthcare products and dietary supplements in the United States and also provide personal genomics products and services. The Company is also engaged in the development and marketing of dietary supplements under the TK Supplements brand. The Company's TK Supplements product line includes Legendz XL, a male sexual enhancement and Triple Edge XL, an energy and stamina booster.
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 PROPHASE LABS INC
SANDRIDGE ENERGY INC. (SD) is a small-cap value stock in the Oil & Gas Operations industry. The rating according to our strategy based on Joel Greenblatt changed from 0% 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: SandRidge Energy, Inc. is an independent oil and natural gas company that is focused on acquisition, development and production activities. The Company's primary areas of operation are the Mid-Continent in Oklahoma and Kansas. The Company holds interests in over 1,442 gross producing wells, approximately 947 of which it operates, and approximately 551,000 gross total acres under lease located primarily in Oklahoma and Kansas. Its productive wells consist of wells that are producing hydrocarbons. The Company sells its oil, natural gas and natural gas liquids (NGLs) to a range of customers, including oil and natural gas companies and trading and energy marketing companies. The Company's subsidiaries include Lariat Services, Inc., SandRidge Exploration and Production, LLC, SandRidge Holdings, Inc., SandRidge Midstream, Inc., SandRidge Operating Company and SandRidge Realty, LLC.
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 SANDRIDGE ENERGY INC.
RAMACO RESOURCES INC (METC) is a small-cap value stock in the Coal industry. The rating according to our strategy based on Joel Greenblatt changed from 0% 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: Ramaco Resources, Inc. is a metallurgical coal company. The Company operates and develops metallurgical coal in southern West Virginia, southwestern Virginia, and southwestern Pennsylvania. Its development portfolio primarily includes four properties: Elk Creek, Berwind, RAM Mine and Knox Creek. The Elk Creek property consists of approximately 20,200 acres of controlled mineral rights and contains 16 seams that it has targeted for production. It operates three deep mines and a surface mine at its Elk Creek mining complex. The Berwind property consists of approximately 41,300 acres of controlled mineral rights and is located on the border of West Virginia and Virginia. The Knox Creek property consists of approximately 62,100 acres of controlled mineral rights. Its RAM Mine property is located in southwestern Pennsylvania, consists of approximately 1,567 acres of controlled mineral rights. Its subsidiaries include Ramaco Development, LLC; RAM Mining, LLC; and RAMACO Coal Sales, LLC.
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 RAMACO RESOURCES INC
More details on Validea's Joel Greenblatt strategy
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.
