Daily Validea Strategy Update Report David Dreman – 07/05/2022

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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.

AVIS BUDGET GROUP INC. (BECAUSE) is a large-cap value stock in the rental and leasing industry. The rating under our David Dreman-based strategy rose from 57% to 69% 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: Avis Budget Group Inc. is a provider of vehicle rental and car sharing services. The Company’s segments include Americas and International. The Americas segment provides and licenses the Company’s brands to third parties for vehicle rental and ancillary products and services in North America, South America, Central America and the Caribbean, and operates the business of the Company’s car sharing on the markets. The International segment provides and licenses the Company’s brands to third parties for vehicle rental and ancillary products and services in Europe, the Middle East, Africa, Asia and Australasia, and operates the business of Company car sharing in some of these markets. The Company offers a variety of vehicles in its rental fleet, including luxury cars, special purpose vehicles and light commercial vehicles. The Company operates through three brands of mobility solutions, such as Avis, Budget and Zipcar, as well as several other brands in their respective markets.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all 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 criteria.

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

Detailed analysis of AVIS BUDGET GROUP INC.

Complete Guru Analysis for CAR

Full Factor Report for CAR

RADIAN GROUP INC (RDN) is a mid-cap value stock in the insurance sector (Prop. & Casualty). The rating under our David Dreman-based strategy went from 63% to 77% 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: Radian Group Inc. is a diversified mortgage and real estate services company. The Company provides mortgage insurance and other products and services to the real estate and mortgage financing industries. The Company operates through its two business segments: Mortgage and homegenius. The Mortgage Lending segment aggregates, manages and distributes mortgage credit risk in the United States on behalf of mortgage lenders and mortgage investors, primarily through private mortgage insurance on residential mortgages of leader, and also provides other credit risk management, contract underwriting and execution solutions. The Company’s homegenius segment offers a range of securities, real estate and technology products and services to consumers, mortgage lenders, mortgage and real estate investors, government sponsored enterprises (GSEs) and real estate brokers and agents.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all 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 criteria.

MARKET CAPITALIZATION: PASS
EARNINGS TREND: TO FAIL
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): PASS
PRICE/DIVIDEND RATIO (P/D): TO FAIL
THE PAYOUT RATIO: TO FAIL
RETURN ON EQUITY: TO FAIL
PROFIT MARGINS BEFORE TAX: PASS
YIELD: PASS

Detailed Analysis of RADIAN GROUP INC

Complete Guru Analysis for RDN

Full factor ratio for RDN

RYDER SYSTEM, INC. (R) is a mid-cap value stock in the rental and leasing industry. The rating under our David Dreman-based strategy rose from 54% to 69% 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: Ryder System, Inc. is a logistics and transportation company. It provides supply chain, dedicated transportation and commercial fleet management solutions. It operates through three business segments: Fleet Management Solutions (FMS), which provides comprehensive rental and rental services with flexible maintenance options, commercial rental and maintenance services for trucks, tractors and trailers to customers primarily in the United States (US), Canada and the United Kingdom (UK); Supply Chain Solutions (SCS), which provides integrated logistics solutions including distribution management, dedicated transportation, transportation management, e-commerce and last mile, and professional services in North America; and Dedicated Transportation Solutions (DTS), which provides turnkey transportation solutions in the United States, including dedicated vehicles, drivers, management, and administrative support. It provides services, such as leasing, rental and maintenance, as well as the sale of used vehicles.

The following table summarizes whether the stock meets each of the tests for this strategy. Not all 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 criteria.

MARKET CAPITALIZATION: PASS
EARNINGS TREND: TO FAIL
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): TO FAIL
PRICE/DIVIDEND RATIO (P/D): TO FAIL
CURRENT RATIO: TO FAIL
THE PAYOUT RATIO: TO FAIL
RETURN ON EQUITY: PASS
PROFIT MARGINS BEFORE TAX: PASS
YIELD: TO FAIL
LOOK AT TOTAL DEBT/EQUITY: PASS

Detailed analysis of RYDER SYSTEM, INC.

Full Guru Analysis for R

Full factor ratio for R

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 Forbes magazine columnist.

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 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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