Validea Joel Greenblatt Strategy Daily Upgrade Report – 5/11/2022

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.

TYSON FOODS, INC. (TSN) is a large-cap value stock in the Food Processing 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: Tyson Foods, Inc. is a protein-focused food company. Its segments include Beef, Pork, Chicken, and Prepared Foods. Beef segment includes its operations related to processing live fed cattle and fabricating dressed beef carcasses into primal and sub-primal cuts and case-ready products. It also includes sales from allied products such as hides and variety of meats, as well as logistics operations to move products through the supply chain. Pork segment includes operations related to processing live market hogs and fabricating pork carcasses into primal and sub-primal cuts and case-ready products. Chicken segment includes domestic operations related to raising and processing live chickens into, and purchasing raw materials for, fresh, frozen, and value-added chicken products, as well as sales from allied products. Prepared Foods includes operations related to manufacturing and marketing, frozen and refrigerated food products and logistics operations to move products through the supply chain.

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 TYSON FOODS, INC.

Full Guru Analysis for TSN

Full Factor Report for TSN

VECTOR GROUP LTD (VGR) is a small-cap value stock in the Tobacco 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: Vector Group Ltd. is a holding company for Liggett Group LLC, Vector Tobacco Inc., and New Valley LLC. The Company operates through two segments: Tobacco and Real Estate. The Tobacco segment is engaged in the manufacture and sale of cigarettes in the United States through its Liggett Group LLC and Vector Tobacco LLC subsidiaries. The Real Estate segment includes the real estate investment business through its subsidiary New Valley LLC, which has interests in various real estate projects across the United States and is seeking to acquire or invest in additional real estate properties or projects. It has real estate projects in different asset classes, including planned communities, condominiums and mixed-use developments, apartment buildings, hotels and commercial properties. The Company owns and seeks to acquire investment interests in various domestic and international real estate projects through debt and equity investments.

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 VECTOR GROUP LTD

Full Guru Analysis for VGR

Full Factor Report for VGR

CARTER’S, INC. (CRI) is a mid-cap value stock in the Retail (Apparel) 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: Carter’s, Inc. is a marketer of apparel exclusively for babies and young children. The Company offers its products across various brands, including Carter’s, OshKosh B’gosh (OshKosh), Child of Mine, Just One You, Simple Joys and little planet. Its business segments include US Retail, US Wholesale, and International. The Company’s brands are available in department stores, national chains, and specialty retailers domestically and internationally. The Company offers its products through over 1,000 Company-operated stores in the United States, Canada, and Mexico, and via its online sites www.carters.com, www.oshkosh.com, www.cartersoshkosh.ca and www.carters.com .mx. The Company’s Child of Mine brand is available at Walmart, its Just One You brand is available at Target, and its Simple Joys brand is available on Amazon. The Company also owns Skip Hop, a global lifestyle brand for families with young children. It offers baby apparel, sleepwear and gift bundles under little planet brand.

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 CARTER’S, INC.

Full Guru Analysis for CRI

Full Factor Report for CRI

A-MARK PRECIOUS METALS INC (AMRK) is a small-cap value stock in the Jewelry & Silverware 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: A-Mark Precious Metals, Inc. is a fully integrated precious metals platform. The Company operates through three segments: Wholesale Sales & Ancillary Services, Secured Lending and Direct-to-Consumer. The Wholesale Sales & Ancillary Services segment operates as a full-service precious metals company. The products sold within this segment include gold, silver, platinum, and palladium mainly in the form of coins, rounds, bars, wafers and grain. The Company operates a Secured Lending segment through its wholly owned subsidiary, Collateral Finance Corporation (CFC). Direct to customer segment operate through its wholly owned subsidiaries JM Bullion, Inc. (JMB), Goldline, Inc. (Goldline) 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.

EARNINGS YIELD: Neutral
RETURN ON TANGIBLE CAPITAL: Neutral
FINAL RANKING: FAIL

Detailed Analysis of A-MARK PRECIOUS METALS INC

Full Guru Analysis for AMRK

Full Factor Report for AMRK

More details on Validea’s Joel Greenblatt strategy

Joel Greenblatt Stock Ideas

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 an investment research service 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.

Leave a Comment

Your email address will not be published.