The following are today’s upgrades for Validea’s Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
SUPERIOR GROUP OF COMPANIES INC (SGC) is a small-cap value stock in the Apparel/Accessories industry. The rating according to our strategy based on John Neff changed from 60% to 79% 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: Superior Group of Companies, Inc. designs, manufactures and distributes uniforms to retailers, foodservice chains, transportation and other service industries. Superior operates through three segments: Uniforms and Related Products, Remote Staffing Solutions and Promotional products. Its Uniforms and Related Products segment is engaged in the sale of uniforms and related items through its marketing brands Fashion Seal Healthcare, HPI and WonderWink. It designs, manufactures and distributes uniforms, corporate identity apparel, career apparel and accessories for the hospital and healthcare fields; hotels; fast food and other restaurants; transportation; and the private security, industrial and commercial markets. It services its Remote Staffing Solutions segment through multiple The Office Gurus (TOG) entities, including its subsidiaries in El Salvador, Belize, and the United States. TOG is a near-shore provider of multilingual telemarketing and total office support solutions.
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.
P/E RATIO: | PASS |
EPS GROWTH: | PASS |
FUTURE EPS GROWTH: | FAIL |
SALES GROWTH: | PASS |
TOTAL RETURN/PE: | PASS |
FREE CASH FLOW: | PASS |
EPS PERSISTENCE: | FAIL |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
COLUMBIA SPORTSWEAR COMPANY (COLM) is a mid-cap growth stock in the Apparel/Accessories industry. The rating according to our strategy based on John Neff changed from 62% to 81% 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: Columbia Sportswear Company is an apparel and footwear company. The Company designs, sources, markets and distributes outdoor lifestyle apparel, footwear, accessories and equipment under the Columbia, Mountain Hardwear, Sorel, prAna and other brands. Its geographic segments are the United States, Latin America and Asia Pacific (LAAP), Europe, Middle East and Africa (EMEA), and Canada. The Company develops and manages its merchandise in categories, including apparel, accessories and equipment, and footwear. It distributes its products through a mix of wholesale distribution channels, its own direct-to-consumer channels (retail stores and e-commerce), independent distributors and licensees. As of December 31, 2016, its products were sold in approximately 90 countries. In 59 of those countries, it sells to independent distributors to whom it has granted distribution rights. Contract manufacturers located outside the United States manufacture all of its products.
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.
P/E RATIO: | FAIL |
EPS GROWTH: | PASS |
FUTURE EPS GROWTH: | PASS |
SALES GROWTH: | PASS |
TOTAL RETURN/PE: | PASS |
FREE CASH FLOW: | PASS |
EPS PERSISTENCE: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
GLADSTONE CAPITAL CORPORATION (GLAD) is a small-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on John Neff changed from 77% to 96% 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: Gladstone Capital Corporation is a closed-end, non-diversified management investment company, operating as a business development company (BDC). The objectives of the Company are to achieve and grow current income by investing in debt securities of established businesses that it believes will provide stable earnings and cash flow to pay expenses, make principal and interest payments on its outstanding indebtedness and make distributions to stockholders that grow over time, and to provide its stockholders with long-term capital appreciation in the value of its assets by investing in equity securities of established businesses that it believes can grow over time to permit it to sell its equity investments for capital gains. The Company is focused on investing in lower middle-market companies in the United States. It has investments in south, Midwest, west and northeast of the United States. Its portfolio allocation includes debt investments 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.
P/E RATIO: | PASS |
EPS GROWTH: | PASS |
FUTURE EPS GROWTH: | PASS |
SALES GROWTH: | PASS |
TOTAL RETURN/PE: | PASS |
FREE CASH FLOW: | FAIL |
EPS PERSISTENCE: | FAIL |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
COLUMBUS MCKINNON CORP. (CMCO) is a small-cap value stock in the Misc. Capital Goods industry. The rating according to our strategy based on John Neff changed from 62% to 81% 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: Columbus McKinnon Corporation is a global designer, manufacturer and marketer of hoists, actuators, cranes, rigging tools, digital power control systems, and other material handling products serving various commercial and industrial end user markets. The Company’s products include various electric, air-powered, lever, and hand hoists, hoist trolleys, winches, industrial crane systems, such as steel bridge, gantry and jib cranes and aluminum work station cranes; alloy and carbon steel chain; forged attachments, such as hooks, shackles, textile slings, clamps, logging tools and load binders; mechanical and electromechanical actuators and rotary unions; below-the-hook special purpose lifters and tire shredders; power and motion control systems, such as alternate current (AC) and direct current (DC) drive systems, radio remote controls, push button pendant stations, brakes, and collision avoidance and power delivery subsystems.
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.
P/E RATIO: | PASS |
EPS GROWTH: | PASS |
FUTURE EPS GROWTH: | PASS |
SALES GROWTH: | PASS |
TOTAL RETURN/PE: | FAIL |
FREE CASH FLOW: | PASS |
EPS PERSISTENCE: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
MIDWESTONE FINANCIAL GROUP, INC. (MOFG) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on John Neff changed from 60% to 79% 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: MidWestOne Financial Group, Inc. is a bank holding and financial holding company. The Company operates through its bank subsidiaries, MidWestOne Bank, Central Bank and MidWestOne Insurance Services, Inc. that operates through three agencies located in central and east-central Iowa. As of May 1, 2019, the Bank operated a total of 62 banking offices in Iowa, Minnesota, Wisconsin, Colorado and Florida. It provides full service retail banking in the communities in which its branch offices are located and also offers trust and investment management services. The Bank offers deposit products, including checking and other demand deposit accounts, negotiable order of withdrawal (NOW) accounts, savings accounts, money market accounts, certificates of deposit, individual retirement accounts and other time deposits. The Bank offers commercial and industrial, agricultural, real estate mortgage and consumer loans.
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.
P/E RATIO: | PASS |
EPS GROWTH: | PASS |
FUTURE EPS GROWTH: | FAIL |
SALES GROWTH: | PASS |
TOTAL RETURN/PE: | PASS |
FREE CASH FLOW: | FAIL |
EPS PERSISTENCE: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
Since its inception, Validea’s strategy based on John Neff has returned 330.42% vs. 200.20% for the S&P 500. For more details on this strategy, click here
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as “relatively prosaic, dull, [and] conservative.” There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500’s 10.6 percent return 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 ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be 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 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.
Recent Comments