Validea Peter Lynch Strategy Daily Upgrade Report – 05/26/2021

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THere are today’s updates for Validea’s P / E / Growth Investor model based on Peter Lynch’s published strategy. This strategy looks for reasonably priced stocks relative to earnings growth that also have strong balance sheets.

CATHAY GENERAL BANCORP (CATY) is a mid-cap value share in the Regional Banks sector. The rating according to our strategy based on Peter Lynch went from 0% to 80% depending on the underlying fundamentals of the company 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% generally indicates a strong interest.

Company Description: Cathay General Bancorp is a banking holding company. The Company owns Cathay Bank, a state of California chartered commercial bank (the Bank); seven limited partnerships invest in affordable housing investments; GBC Venture Capital, Inc. and Asia Realty Corp. The Company also owns the common shares of five statutory commercial trusts created for the issuance of equity securities. The Bank mainly serves individuals, professionals and small and medium-sized enterprises in local markets and provides commercial mortgages, commercial loans, loans for small business administration (SBA), residential mortgages, loans home construction, home equity lines of credit and installment loans to individuals for cars, household and other consumer expenses. The Bank offers passbooks, checking accounts, money market deposit accounts, certificates of deposit, individual retirement accounts, college certificates of deposit, and public fund deposits.

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 gives a brief overview of the strengths and weaknesses of the title in the context of the strategy criteria.

SALES: FAIL
PERFORMANCE COMPARED TO S&P 500: PAST
P / E ADJUSTED RETURN / GROWTH RATIO (PEG): PAST
TOTAL DEBT / EQUITY RATIO: NEUTRAL
EQUITY / ASSETS RATIO: PAST
RETURN ON ASSETS: PAST
FREE MOVEMENT OF CAPITAL: NEUTRAL
NET CASH POSITION: BONUS PASS

CATHAY GENERAL BANCORP detailed analysis

Full Guru Analysis for CATY

Full factor ratio for CATY

TEXAS PACIFIC LAND CORP (TPL) is a large-cap growth stock of Misc. Financial services industry. The rating according to our strategy based on Peter Lynch fell from 0% to 74% based on the underlying fundamentals of the company 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% generally indicates a strong interest.

Company Description: Texas Pacific Land Corp is engaged in the management of land, including royalty rights, for the benefit of its owners. The company’s operating segments are land and resource management, and water services and operations. The Company operates as a landowner in the State of Texas with approximately 880,000 acres of land in West Texas. The Land and Resource Management segment focuses on the management of TPL’s oil and gas royalties and acreage located in more than 19 different counties. Its revenue streams consist primarily of oil and gas royalties, commercial leases, land sales, easements and materials sales. Its water services and operations offer various solutions, such as water supply, infrastructure development, water monitoring, analysis, well testing, water collection / treatment / recycling. produced water and produced water disposal services.

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 gives a brief overview of the strengths and weaknesses of the title in the context of the strategy criteria.

P / E / GROWTH RATIO: FAIL
SALES AND P / E RATIO: NEUTRAL
BPA GROWTH RATE: PAST
TOTAL DEBT / EQUITY RATIO: NEUTRAL
EQUITY / ASSETS RATIO: PAST
RETURN ON ASSETS: PAST
FREE MOVEMENT OF CAPITAL: NEUTRAL
NET CASH POSITION: NEUTRAL

Detailed analysis of TEXAS PACIFIC LAND CORP

Full Guru Analysis for TPL

Full factor ratio for TPL

More details on Validea’s Peter Lynch strategy

Ideas for action from Peter Lynch

About Peter Lynch: Perhaps the greatest mutual fund manager of all time, Lynch guided Fidelity Investment’s Magellan fund to an average annual return of 29.2% from 1977 until his retirement in 1990, nearly doubling the 15.8% annual return of the S&P 500 during this period. Lynch’s common sense approach and quick wit have made him one of Wall Street’s top-rated investors. (“Go for a business that any idiot can run – because sooner or later any idiot is probably going to run it,” is one of his many pearls of wisdom.) Lynch’s bestseller One Up on Wall Street is sort of a “stocks for the everyman / everywoman,” breaking down its approach into easy-to-understand concepts.

About Validea: Validea is an investment research service that tracks published strategies from investment legends. Validea offers both stock market 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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