Daily Validea Strategy Update Report David Dreman – 07/26/2022

JHere are today’s updates for Validea 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 seeks to improve fundamentals.

LITHIA MOTORS INC (LAD) is a mid-cap value stock in the retail (specialty) sector. The rating under our David Dreman-based strategy rose from 71% to 83% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: Lithia Motors, Inc. is a provider of personal transportation solutions in the United States. It operates in three segments: Domestic, Import and Luxury. The Domestic segment is comprised of automotive retail franchises that sell new vehicles manufactured by Chrysler, General Motors and Ford. The Import segment includes automotive retail franchises that sell new vehicles manufactured primarily by Toyota, Honda, Subaru, Nissan, Hyundai, Volkswagen, Kia and Mazda. The Luxury segment includes automotive retail franchises that sell new vehicles manufactured by BMW, Mercedes-Benz, Audi, Lexus, Acura, Porsche, Jaguar, Land Rover, Mini, Infiniti, Rolls-Royce, Lamborghini, McLaren and Pagani. It offers a range of products and services, such as vehicle life cycle, including new and used vehicles, financing and insurance products, as well as automotive repair and maintenance. It offers 40 brands of new vehicles and all used vehicle brands in 278 stores in North America.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

MARKET CAPITALIZATION: PASS
EARNINGS TREND: PASS
EPS GROWTH RATES IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS
PRICE/CASH FLOW RATIO (P/CF): PASS
PRICE/BOOK VALUE (P/B): FAIL
PRICE/DIVIDEND RATIO (P/D): FAIL
CURRENT RATIO: PASS
THE PAYOUT RATIO: PASS
RETURN ON EQUITY: PASS
PROFIT MARGINS BEFORE TAX: FAIL
YIELD: FAIL
LOOK AT TOTAL DEBT/EQUITY: FAIL

Detailed Analysis of LITHIA MOTORS INC

Full Guru Analysis for LAD

Full factor ratio for LAD

VALE SA (ADR) (VALE) is a large-cap value stock in the metal mining industry. The rating under our David Dreman-based strategy went from 69% to 76% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: Vale SA, formerly Companhia Vale do Rio Doce, is a Brazil-based metallurgical and mining company that is principally engaged in the production of iron ore and nickel. The Company also produces iron ore pellets, copper, platinum group metals (PGM), gold, silver and cobalt. Vale is engaged in mineral exploration for new fields in five countries and operates logistics systems in Brazil and other parts of the world, including railways, marine terminals and ports, which are integrated with mining operations. . Additionally, Vale has distribution centers to support the delivery of iron ore around the world. Vale has many subsidiaries, including Vale Logistica Uruguay SA, Vale Holdings BV, Vale Overseas Ltd. The Company’s overseas operations cover approximately 30 countries.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

MARKET CAPITALIZATION: PASS
EARNINGS TREND: PASS
EPS GROWTH RATES IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: FAIL
PRICE/CASH FLOW RATIO (P/CF): PASS
PRICE/BOOK VALUE (P/B): FAIL
PRICE/DIVIDEND RATIO (P/D): PASS
CURRENT RATIO: FAIL
THE PAYOUT RATIO: FAIL
RETURN ON EQUITY: PASS
PROFIT MARGINS BEFORE TAX: PASS
YIELD: PASS
LOOK AT TOTAL DEBT/EQUITY: PASS

Detailed analysis of VALE SA (ADR)

Complete Guru Analysis for VALE

Full Factor Report for VALE

BIONTECH SE – ADR (BNTX) is a large-cap value stock in the biotech and drug industry. The rating under our David Dreman-based strategy went from 69% to 76% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: BioNTech SE is a Germany-based clinical-stage biotechnology company. The Company is focused on patient-specific immunotherapies for the treatment of cancer and other serious diseases. It develops a broad portfolio of products using different scientific approaches and technology platforms, including individualized mRNA-based product candidates, chimeric antigen-receptor T cells, checkpoint immunomodulators, anti-cancer antibodies targeted and small molecules. In addition, the Company offers diagnostic products and drug discovery services for other therapeutic areas, including infectious diseases, allergies and autoimmune diseases.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

MARKET CAPITALIZATION: PASS
EARNINGS TREND: PASS
EPS GROWTH RATES IN THE IMMEDIATE PAST AND FUTURE: FAIL
P/E RATIO: PASS
PRICE/CASH FLOW RATIO (P/CF): PASS
PRICE/BOOK VALUE (P/B): FAIL
PRICE/DIVIDEND RATIO (P/D): FAIL
CURRENT RATIO: PASS
THE PAYOUT RATIO: FAIL
RETURN ON EQUITY: PASS
PROFIT MARGINS BEFORE TAX: PASS
YIELD: FAIL
LOOK AT TOTAL DEBT/EQUITY: PASS

Detailed analysis of BIONTECH SE – ADR

Complete Guru Analysis for BNTX

Full factor report for BNTX

LENNAR SOCIETY (LEN) is a large-cap value stock in the construction services sector. The rating under our strategy based on David Dreman went from 64% to 76% depending on the company’s underlying fundamentals and the stock’s valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.

Company Description: Lennar Corporation is a homebuilder and originator of residential and commercial mortgages. The Company is also a provider of title and closing insurance services, and a developer of multi-family rental properties. The Company’s segments include Homebuilding East, Homebuilding Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily and Lennar other. Its residential construction segments primarily include the construction and sale of attached and detached single-family homes, as well as the purchase, development and sale of residential land directly and through its unconsolidated entities. Its financial services segment primarily includes mortgage financing, title and closing services, primarily for buyers of its homes. Its Multifamily segment focuses on developing a diversified portfolio of institutional quality multifamily rental properties in select US markets. Its Lennar Others segment primarily includes strategic investments in technology companies.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.

MARKET CAPITALIZATION: PASS
EARNINGS TREND: PASS
EPS GROWTH RATES IN THE IMMEDIATE PAST AND FUTURE: PASS
P/E RATIO: PASS
PRICE/CASH FLOW RATIO (P/CF): PASS
PRICE/BOOK VALUE (P/B): FAIL
PRICE/DIVIDEND RATIO (P/D): FAIL
CURRENT RATIO: FAIL
THE PAYOUT RATIO: FAIL
RETURN ON EQUITY: PASS
PROFIT MARGINS BEFORE TAX: PASS
YIELD: FAIL
LOOK AT TOTAL DEBT/EQUITY: PASS

Detailed analysis of LENNAR CORPORATION

Full Guru Analysis for LEN

Full factor ratio for LEN

More details on Validea’s David Dreman strategy

About David Drman: Dreman’s Kemper-Dreman High Return Fund was one of the best performing mutual funds of all time, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services . By 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 columnist for Forbes magazine.

About Validea: Validea is an investment research service that tracks 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 on 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.

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