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.
TRUSTMARK CORP (TRMK) is a small-cap value stock in the Regional Banks 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: Trustmark Corporation is a bank holding company. The Company's principal subsidiary is Trustmark National Bank (TNB). Through TNB and its subsidiaries, the Company operates as a financial services company providing banking and other financial solutions. It operates through three segments: General Banking, Wealth Management and Insurance. The General Banking Segment is responsible for all traditional banking products and services, including loans and deposits. The Wealth Management Segment provides customized solutions for customers by integrating financial services with traditional banking products and services, such as money management, full-service brokerage, financial planning, personal and institutional trust and retirement services. Through Fisher Brown Bottrell Insurance, Inc. (FBBI), a subsidiary of TNB, the Insurance Segment provides a range of retail insurance products, including commercial risk management products, bonding, group benefits and personal lines coverage.
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: | FAIL |
| 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: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | BONUS PASS |
Detailed Analysis of TRUSTMARK CORP
HORIZON BANCORP INC (HBNC) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% 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: Horizon Bancorp Inc, formerly Horizon Bancorp, is a bank holding company. The Company provides a range of banking services in Northern and Central Indiana and Southwestern and Central Michigan through its bank subsidiary, Horizon Bank, N.A. (the Bank) and other affiliated entities and Horizon Risk Management, Inc. The Company operates through commercial banking segment. The Bank is a full-service commercial bank offering commercial and retail banking services, corporate and individual trust and agency services and other services incident to banking. Horizon Risk Management, Inc. is a captive insurance company. LSB Risk Management, Inc. is a captive insurance company. As of September 1, 2017, the Bank operated through 60 offices throughout northern and central Indiana and southern Michigan and Ohio. The Bank's loan portfolio consists of commercial loans, real estate loans, mortgage warehouse loans and consumer loans.
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.
| YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: | PASS |
| EARNINGS PER SHARE: | 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 HORIZON BANCORP INC
SIERRA BANCORP (BSRR) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% 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: Sierra Bancorp is a bank holding company for Bank of the Sierra (the Bank). The Bank is a state-chartered bank, which offers a range of retail and commercial banking services. The Bank's products and services are related to the business of lending money and accepting deposits. Its customers have access to electronic point-of-sale payment alternatives around the country through the Pulse Electronic Funds Transfer (EFT) network. Its Internet branch provides the ability to open deposit accounts online; an online banking option with bill-pay and mobile banking capabilities, including mobile check deposit; a customer service center that is accessible by toll-free telephone during business hours, and an automated telephone banking system. It offers a range of other banking products and services to complement and support its lending and deposit products, including remote deposit capture and automated payroll services for business customers.
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.
| YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: | PASS |
| EARNINGS PER SHARE: | 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 SIERRA BANCORP
CAMBIUM NETWORKS CORP (CMBM) is a small-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Peter Lynch changed from 72% 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: Cambium Networks Corp provides wireless broadband networking infrastructure solutions for network operators, including medium-sized wireless Internet service providers, enterprises and government agencies. The Company's wireless fabric includes intelligent radios, smart antennas, radio frequency (RF), algorithms, wireless-aware switches and our cloud-based network management software. Its offers its wireless broadband solutions in five categories: Point-to-Point (PTP) backhaul portfolio, Point-to-Multiple (PMP) distribution, cnPilot cloud-managed Wi-Fi solutions, cnMatrix cloud-managed wireless-aware switching solution and cnReach family of narrow-bandwidth connectivity products.
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 |
| INVENTORY TO SALES: | PASS |
| EPS GROWTH RATE: | FAIL |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of CAMBIUM NETWORKS CORP
GLOBE LIFE INC (GL) is a mid-cap value stock in the Insurance (Life) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% 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: Globe Life Inc., formerly Torchmark Corporation, is an insurance holding company. The Company, through its subsidiaries, provides a range of life and health insurance products and annuities to a base of customers. The Company's segments include life insurance, health insurance, annuities and investment. The life insurance segment includes traditional and interest-sensitive whole life insurance as well as term life insurance. The Health insurance products are guaranteed-renewable and include Medicare Supplement, critical illness, accident and limited-benefit supplemental hospital and surgical coverage's. Annuities include fixed-benefit contracts. The Company markets its insurance products through various distribution channels, each of which sells the products of its insurance segments. Its subsidiaries include American Income Life Insurance Company (American Income) and Liberty National Life Insurance Company (Liberty National).
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.
| YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: | PASS |
| EARNINGS PER SHARE: | 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 GLOBE LIFE INC
PREMIER FINANCIAL CORP (OHIO) (PFC) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Peter Lynch changed from 72% 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: Premier Financial Corp., formerly First Defiance Financial Corp., is a bank holding company engaged in community banking. The Company operates through its Premier Bank. The Company originates residential real estate loans, commercial real estate loans, commercial loans, home improvement and home equity loans and consumer loans. It invests in the United States Treasury and federal government agency obligations, obligations of states and political subdivisions, mortgage-backed securities that are issued by federal agencies, collateralized mortgage obligations (CMOs) and corporate bonds. It is providing a range of depository, trust and wealth management services. The Company operates approximately 78 branches, 12 loan offices and two wealth offices in Ohio, Michigan, Indiana, Pennsylvania and West Virginia.
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.
| YIELD ADJUSTED P/E TO GROWTH (PEG) RATIO: | PASS |
| EARNINGS PER SHARE: | 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 PREMIER FINANCIAL CORP (OHIO)
SILVERCREST ASSET MANAGEMENT GROUP INC (SAMG) is a small-cap growth stock in the Investment Services industry. The rating according to our strategy based on Peter Lynch changed from 87% to 91% 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: Silvercrest Asset Management Group Inc. (Silvercrest) is a full-service wealth management firm focused on providing financial advisory and related family office services to ultra-high net worth individuals and institutional investors. The Company offers a suite of complementary and customized family office services for families seeking oversight of their financial affairs. The Company views its operations as comprising one operating segment, the investment management industry. The Company's capabilities include portfolio management; investments including equity management, fixed income management and outsourced investments, and family office services. Silvercrest's family office services include financial planning; tax planning and preparation; partnership accounting and fund administration; consolidated wealth reporting; estate or trust agency, and art consultancy and management.
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 SILVERCREST ASSET MANAGEMENT GROUP INC
SPARTANNASH CO (SPTN) is a small-cap value stock in the Retail (Grocery) industry. The rating according to our strategy based on Peter Lynch changed from 0% to 91% 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: SpartanNash Company is a multi-regional grocery distributor and grocery retailer. The Company's core businesses include distributing grocery products to independent grocery retailers (independent retailers), select national retailers, its corporate owned retail stores, and the United States military commissaries. The Company operates through three segments: Food Distribution, Military and Retail. The Food Distribution segment provides a range of nationally branded and private brand grocery products and perishable food products to independent retailers, food service distributors and its corporate owned retail stores. The Military segment contracts with manufacturers to distribute a range of grocery products primarily to military commissaries and exchanges located in the United States, the District of Columbia, Europe, Cuba, Puerto Rico, Bahrain and Egypt. As of December 31, 2016, the Retail segment operated 157 corporate owned retail stores in the Midwest and Great Lakes regions.
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: | PASS |
| FREE CASH FLOW: | NEUTRAL |
| NET CASH POSITION: | NEUTRAL |
Detailed Analysis of SPARTANNASH CO
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
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