The following are today’s upgrades for Validea’s Growth/Value Investor model based on the published strategy of James P. O’Shaughnessy. This two strategy approach offers a large-cap value model and a growth approach that looks for persistent earnings growth and strong relative strength.
DICKS SPORTING GOODS INC (DKS) is a mid-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on James P. O’Shaughnessy changed from 75% to 100% 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: DICK’S Sporting Goods, Inc. is an omni-channel sporting goods retailer. The Company offers an assortment of sports equipment, apparel, footwear and accessories through dedicated teammates, in-store services and specialty shop-in-shops. The Company owns and operates approximately 850 DICK’S Sporting Goods Golf Galaxy, Field & Stream, Public Lands and Going Going Gone! stores, and offers its products both online and through mobile applications. The Company also owns and operates DICK’S House of Sport and Golf Galaxy Performance Center, as well as GameChanger, a youth sports mobile app for video streaming, scorekeeping, scheduling and communications. It offers its products through an e-Commerce platform that is integrated with its store network and provides athletes with the convenience and expertise of a 24-hour storefront.
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.
| MARKET CAP: | PASS |
| EARNINGS PER SHARE PERSISTENCE: | PASS |
| PRICE/SALES RATIO: | PASS |
| RELATIVE STRENGTH: | PASS |
Detailed Analysis of DICKS SPORTING GOODS INC
CORE & MAIN INC (CNM) is a mid-cap growth stock in the Misc. Capital Goods industry. The rating according to our strategy based on James P. O’Shaughnessy changed from 75% to 100% 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: Core & Main, Inc. is a holding company. The Company is a specialized distributor of water, wastewater, storm drainage and fire protection products, and related services, to municipalities, private water companies and professional contractors across municipal, non-residential and residential end markets nationwide. Its specialty products and services are used in the maintenance, repair, replacement and new construction of water and fire protection infrastructure. The Company’s PowerScope bidding platform and Online Advantage and Mobile Advantage customer portals enables it to work with its customers in material management, inventory purchasing, quoting and coordinated jobsite delivery. Its products include pipes, valves, fittings, storm drainage products, fire protection products, meter products and other products for use in the construction, maintenance and repair of water and waste-water systems. The Company also provides geosynthetics products in northern California.
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.
| MARKET CAP: | PASS |
| EARNINGS PER SHARE PERSISTENCE: | PASS |
| PRICE/SALES RATIO: | PASS |
| RELATIVE STRENGTH: | PASS |
Detailed Analysis of CORE & MAIN INC
More details on Validea’s James P. O’Shaughnessy strategy
About James P. O’Shaughnessy: Research guru and money manager James O’Shaughnessy forced many professional and amateur investors alike to rethink their investment beliefs when he published his 1996 bestseller, What Works on Wall Street. O’Shaughnessy back-tested 44 years of stock market data from the comprehensive Standard & Poor’s Compustat database to find out which quantitative strategies have worked over the years and which haven’t. To the surprise of many, he concluded that price/earnings ratios aren’t the best indicator of a stock’s value, and that small-company stocks, contrary to popular wisdom, don’t as a group have an edge on large-company stocks. Today O’Shaughnessy is the Chief Investment Officer of O’Shaughnessy Asset Management.
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.
