The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
MASTERCARD INC (MA) is a large-cap growth stock in the Consumer Financial Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% 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: Mastercard Incorporated is a technology company that connects consumers, financial institutions, merchants, governments and businesses across the world, enabling them to use electronic forms of payment. The Company allows user to make payments by creating a range of payment solutions and services using its brands, which include MasterCard, Maestro and Cirrus. It provides a range of products and solutions that support payment products, which customers can offer to their cardholders. The Company's services facilitate transactions on its core network among account holders, merchants, financial institutions, businesses, governments and other organizations in markets globally. Its products include consumer credit, consumer debit, prepaid and commercial credit and debit. It also provides integrated offerings such as cyber and intelligence products, information and analytics services, identity verification services, consulting, loyalty and reward programs, processing and open banking.
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.
| P/E/GROWTH RATIO: | FAIL |
| SALES AND P/E RATIO: | PASS |
| EPS GROWTH RATE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | NEUTRAL |
| EQUITY/ASSETS RATIO: | PASS |
| RETURN ON ASSETS: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of MASTERCARD INC
UNIVEST FINANCIAL CORP (UVSP) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 74% to 93% 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: Univest Financial Corporation is the bank holding company of Univest Bank and Trust Co. (the Bank). The Company operates through three segments: Banking, Wealth Management and Insurance. The Banking segment provides financial services to individuals, businesses, municipalities and non-profit organizations. These services include a range of banking services, such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing. The Wealth Management segment offers investment advisory, financial planning, trust and brokerage services, which serves a client base of private families and individuals, municipal pension plans, retirement plans, trusts and guardianships. The Insurance segment includes an insurance brokerage agency offering commercial property and casualty insurance, employee benefit solutions, personal insurance lines and human resources consulting.
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.
| P/E/GROWTH RATIO: | PASS |
| SALES AND P/E RATIO: | NEUTRAL |
| EPS GROWTH RATE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | NEUTRAL |
| EQUITY/ASSETS RATIO: | PASS |
| RETURN ON ASSETS: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of UNIVEST FINANCIAL CORP
BANCO SANTANDER SA (ADR) (SAN) is a large-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 0% to 85% 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: Banco Santander, S.A. is a Spain-based company engaged as a retail and commercial bank. The Banks segments include Continental Europe, the United Kingdom, Latin America and the United States. The Continental Europe segment covers all businesses in the Continental Europe. The United Kingdom segment includes the businesses developed by various units and branches in the country. The Latin America segment embraces all its financial activities conducted through its banks and subsidiaries in the region. The United States segment includes the Intermediate Holding Company (IHC) and its subsidiaries Santander Bank, Banco Santander Puerto Rico, Santander Consumer USA, Banco Santander International, Santander Investment Securities, and the Santander branch in New York. The Company's commercial model satisfies the needs of all types of customers: individuals with various income levels.
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.
| SALES: | PASS |
| YIELD COMPARED TO THE S&P 500: | PASS |
| YIELD ADJUSTED P/E/GROWTH (PEG) RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | NEUTRAL |
| EQUITY/ASSETS RATIO: | PASS |
| RETURN ON ASSETS: | FAIL |
| FREE CASH FLOW: | BONUS PASS |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of BANCO SANTANDER SA (ADR)
ARISTA NETWORKS INC (ANET) is a large-cap growth stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Peter Lynch changed from 69% to 87% 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: Arista Networks, Inc. is a supplier of cloud networking solutions that use software to address the needs of Internet companies, cloud service providers and enterprises. The Company cloud networking solutions consist of its Extensible Operating System (EOS), a set of network applications and its Gigabit Ethernet switching and routing platforms. Its cognitive single-tier Spline campus network extends EOS across the campus workspace and the data center. CloudVision, its network-wide approach for workload orchestration and automation, leverages EOS and Cognitive WiFi features, to deliver a workflow orchestration and automation solution for cloud networking to its enterprise customers. It sells its products through both its direct sales force and its channel partners. The Company's end customers span a range of industries and include large Internet companies, service providers, financial services organizations, government agencies, media and entertainment companies and others.
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.
| P/E/GROWTH RATIO: | PASS |
| SALES AND P/E RATIO: | PASS |
| INVENTORY TO SALES: | PASS |
| EPS GROWTH RATE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of ARISTA NETWORKS INC
More details on Validea's Peter Lynch strategy
About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.
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.
