Valida John Neff Strategy Daily Upgrade Report – 02/10/2022


TThe following are today’s upgrades for Validea Low PE investor Model based on published strategy by Johannes Neff. This strategy looks for companies with sustained earnings growth that are trading at a discount relative to their earnings growth and dividend yield.

CURO GROUP HOLDINGS CORP (CURO) is a small-cap value stock in the consumer financial services industry. The rating according to our John Neff based strategy changed from 60% to 77% based on the company’s underlying fundamentals and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock, and a score above 90% usually indicates strong interest.

Company description: CURO Group Holdings Corp. is a technology-enabled consumer finance company serving a broad spectrum of non-Prime consumers in the United States (US) and Canada. The Company’s segments include Direct Lending in US, Canada and POS Lending in Canada. Its direct lending operations in the United States and Canada provide revolving line of credit (LOC) and installment loans, including single payment and vehicle title loans, check cashing, money transfer services, prepaid rechargeable debit cards, and a variety of other ancillary financial products and services to its customers in the United States and Canada. It operates 160 US retail locations. Canada Direct Lending operates 201 branches. Canada POS Lending serves Canadian customers through POS financing available at approximately 7,400 retail locations and online with nearly 2,350 retail partners in 10 provinces and two territories. The Company’s brands include Speedy Cash, Rapid Cash, Cash Money, LendDirect, Flexiti, Avio Credit, Opt+ and Revolve Finance.

The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.

P/E: EXIST
EPS GROWTH: EXIST
FUTURE EPS GROWTH: EXIST
SALES GROWTH: FAIL
TOTAL RETURN/PE: EXIST
FREE CASH FLOW: FAIL
EPS PERSISTENCE: FAIL

Detailed Analysis of CURO GROUP HOLDINGS CORP

Full guru analysis for CURO

Full factor report for CURO

ARCH CAPITAL GROUP LTD. (ACGL) is a large cap value stock in the insurance industry (Prop. & Casualty). The rating according to our John Neff based strategy changed from 60% to 79% based on the company’s underlying fundamentals and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock, and a score above 90% usually indicates strong interest.

Company description: Arch Capital Group Ltd. (ACGL) provides insurance, reinsurance and mortgage insurance through its wholly owned subsidiaries. The company offers a range of property, casualty and mortgage insurance and reinsurance. The Company’s segments include Insurance, Reinsurance, Mortgage, Other and Corporate. The Insurance segment’s product lines include Construction and National Accounts; excess and excess sacrifice; lender products; professional lines; programs; real estate, energy, shipping and aviation; Travel, Accident and Health, and others. The product lines of the reinsurance segment include casualty; marine and aviation; other specialty; financial disaster; property except for property disasters and other. The mortgage segment includes US and international mortgage insurance and reinsurance businesses and government sponsored enterprise (GSE) credit risk-sharing transactions. The Other segment includes the results of Watford Holdings Ltd. (Watford Re).

The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.

P/E: EXIST
EPS GROWTH: FAIL
FUTURE EPS GROWTH: EXIST
SALES GROWTH: EXIST
TOTAL RETURN/PE: EXIST
FREE CASH FLOW: EXIST
EPS PERSISTENCE: FAIL

Detailed Analysis of ARCH CAPITAL GROUP LTD.

Full Guru Analysis for ACGL

Full factor report for ACGL

MDU RESOURCES GROUP INC (MDU) is a mid-cap value stock in the natural gas utilities industry. The rating according to our John Neff based strategy changed from 40% to 79% based on the company’s underlying fundamentals and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock, and a score above 90% usually indicates strong interest.

Company description: MDU Resources Group Inc. is a regulated energy, building materials and services company. The Company’s business segments are Power, Natural Gas Distribution, Pipeline, Construction Materials and Contracts, and Construction Services. The electrical segment generates, transmits, and distributes electricity. The Natural Gas Distribution segment sells natural gas. The Pipelines segment provides natural gas transportation and underground storage services through a regulated pipeline system primarily in the Rocky Mountain and northern Great Plains regions of the United States. The building materials and contracting segment mines, processes and sells building aggregates crushed stone, sand and gravel; produces and sells asphalt mix and supplies ready-mixed concrete. The Construction Services segment provides internal and external specialty contract services in approximately 44 states plus Washington DC

The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.

P/E: FAIL
EPS GROWTH: EXIST
FUTURE EPS GROWTH: EXIST
SALES GROWTH: EXIST
TOTAL RETURN/PE: EXIST
FREE CASH FLOW: EXIST
EPS PERSISTENCE: FAIL

Detailed Analysis of MDU RESOURCES GROUP INC

Full guru analysis for MDU

Full factor report for MDU

More details on Validea’s John Neff strategy

About John Neff: While Neff was known as the manager many top executives trusted with their own money, he was far from the eloquent, high-profile Wall Streeter you might expect. He was meek and reserved, and so was the Windsor Fund, which he managed for more than three decades. In fact, Neff himself described the fund as “relatively prosaic, boring, [and] conservative.” However, his results were not boring. From 1964 to 1995, Neff Windsor led to an average annual return of 13.7 percent, slightly beating the 10.6 percent return of the S&P 500 during that time. That 3.1 percentage point difference is huge over time — a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff’s tenure would have totaled more than $564,000 by the time he retired, more than double what it was would have yielded the same investment in the S&P (approximately $233,000). Considering the length of his tenure, this track record is possibly the best ever for a manager of such a large fund.

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 time, 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.

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