The following are the top rated Financial stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.
NEW RESIDENTIAL INVESTMENT CORP (NRZ) is a mid-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on David Dreman is 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: New Residential Investment Corp. is a provider of capital and services to the mortgage and financial services industry. The Company operates through six segments: Origination, Servicing, MSR Related Investments, Residential Securities and Loans, Consumer Loans, and Corporate. The Company's investment portfolio includes servicing related investments; operating entities; servicing related businesses; mortgage servicing rights (MSRs) including MSR financing receivables; servicer advance investments; servicer advances receivable related to its MSRs investments; residential securities and loans, including Real estate securities, or residential mortgage-backed securities (RMBS), and residential mortgage loans; and consumer loans. The Company's investments in operating entities include its mortgage origination and servicing subsidiary, Newrez LLC (Newrez), and its special servicing division, Shellpoint Mortgage Servicing, as well as investments in affiliated businesses.
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.
| MARKET CAP: | PASS |
| EARNINGS TREND: | PASS |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | PASS |
| P/E RATIO: | PASS |
| PRICE/CASH FLOW (P/CF) RATIO: | FAIL |
| PRICE/BOOK (P/B) VALUE: | PASS |
| PRICE/DIVIDEND (P/D) RATIO: | PASS |
| PAYOUT RATIO: | PASS |
| RETURN ON EQUITY: | FAIL |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | PASS |
Detailed Analysis of NEW RESIDENTIAL INVESTMENT CORP
BANCO BRADESCO SA (ADR) (BBD) is a large-cap value stock in the Regional Banks industry. The rating according to our strategy based on David Dreman is 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: Banco Bradesco SA, formerly Banco Brasileiro de Descontos SA, is a Brazil-based public company which engages in the Banking Services Industry Group. The Company operates as a wide-ranging commercial bank in terms of total assets, credit operations and the volume of deposits and funding. The Company offers a range of banking and financial products and services, in Brazil and abroad, for individuals, and key national and international companies and institutions. The Company's products and services cover banking and non-banking operations, such as: loans and advances, deposits, issuing credit cards, consortium, insurance, capitalization, leasing, payment collection and processing, supplementary pension plans, asset management and securities intermediation and brokerage 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.
| MARKET CAP: | PASS |
| EARNINGS TREND: | PASS |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | PASS |
| P/E RATIO: | PASS |
| PRICE/CASH FLOW (P/CF) RATIO: | FAIL |
| PRICE/BOOK (P/B) VALUE: | FAIL |
| PRICE/DIVIDEND (P/D) RATIO: | PASS |
| PAYOUT RATIO: | PASS |
| RETURN ON EQUITY: | FAIL |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | PASS |
Detailed Analysis of BANCO BRADESCO SA (ADR)
KB FINANCIAL GROUP, INC. (ADR) (KB) is a large-cap value stock in the Regional Banks industry. The rating according to our strategy based on David Dreman is 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: KB Financial Group Inc is a Korean-based company principally engaged in the financial business. The Company operates its business through six segments. The Banking segment consists of retail banking services provided by Kookmin Bank. This segment is engaged in the lending and receiving of large corporations, small and medium-sized businesses, SOHO and household customers, the investment of securities and derivatives, and financing, among others. The Credit Card segment operates credit sales, cash advances and card loans, among others. The Non-life Insurance segment is engaged in the non-life insurance. The Securities segment is engaged in the trading, consignment, and acquisition of securities. The Life Insurance segment is engaged in the life insurance. The other segment is engaged in the maintenance of computer-related equipment and systems, the investigation of credit and the collection of debt, among 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.
| MARKET CAP: | PASS |
| EARNINGS TREND: | FAIL |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | PASS |
| P/E RATIO: | PASS |
| PRICE/CASH FLOW (P/CF) RATIO: | PASS |
| PRICE/BOOK (P/B) VALUE: | PASS |
| PRICE/DIVIDEND (P/D) RATIO: | PASS |
| PAYOUT RATIO: | PASS |
| RETURN ON EQUITY: | FAIL |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | PASS |
Detailed Analysis of KB FINANCIAL GROUP, INC. (ADR)
FS KKR CAPITAL CORP (FSK) is a mid-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on David Dreman is 84% 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: FS KKR Capital Corp. is an externally managed, non-diversified, closed-end management investment company. The Company's investment objectives are to generate current income and long-term capital appreciation. Its portfolio consists primarily of investments in senior secured loans and second lien secured loans of the private United States middle market companies, and subordinated loans and certain asset-based financing loans of the private United States companies. In addition, a portion of the Company's portfolio consists of equity and equity-related securities, corporate bonds, structured products, other debt securities and derivatives, including total return swaps and credit default swaps. It invests in a range of industries, including capital goods, consumer services, consumer durables and apparel, materials, commercial and professional services, and diversified financials. The Company is externally managed by FS/KKR Advisor, 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.
| MARKET CAP: | PASS |
| EARNINGS TREND: | FAIL |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | FAIL |
| P/E RATIO: | PASS |
| PRICE/CASH FLOW (P/CF) RATIO: | FAIL |
| PRICE/BOOK (P/B) VALUE: | PASS |
| PRICE/DIVIDEND (P/D) RATIO: | PASS |
| PAYOUT RATIO: | PASS |
| RETURN ON EQUITY: | PASS |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | PASS |
Detailed Analysis of FS KKR CAPITAL CORP
INVESCO LTD. (IVZ) is a mid-cap value stock in the Investment Services industry. The rating according to our strategy based on David Dreman is 84% 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: Invesco Ltd. (Invesco) is an independent investment management firm. Invesco serves the retail and institutional markets within the investment management industry in the Americas, Europe, Middle East and Africa (EMEA) and Asia-Pacific in approximately 110 countries. It offers a range of investment strategies across asset classes, investment styles, and geographies. The Company's asset classes include money market, balanced, equity, fixed income and alternatives. Its asset management capabilities include mutual funds, exchange-traded funds (ETFs), separately managed accounts (SMAs), model portfolios, indexing and insurance solutions, individual savings accounts (ISA), investment companies with variable capital (ICVC), unit investment trusts (UIT), and variable insurance funds. Invesco's client base includes public and private entities, unions, non-profit organizations, endowments, foundations, pension funds, financial institutions and sovereign wealth funds.
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.
| MARKET CAP: | PASS |
| EARNINGS TREND: | PASS |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | FAIL |
| P/E RATIO: | PASS |
| PRICE/CASH FLOW (P/CF) RATIO: | PASS |
| PRICE/BOOK (P/B) VALUE: | PASS |
| PRICE/DIVIDEND (P/D) RATIO: | FAIL |
| PAYOUT RATIO: | PASS |
| RETURN ON EQUITY: | FAIL |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | PASS |
Detailed Analysis of INVESCO LTD.
More details on Validea's David Dreman strategy
About David Dreman: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.
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.
