November 24, 2022
  • November 24, 2022

Validea Peter Lynch Strategy Daily Update Report – 23/07/2022

By on July 23, 2022 0

JHere are today’s updates for Validea’s P/E/Growth Investor Model based on Peter Lynch’s published strategy. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also have strong balance sheets.

VERIZON COMMUNICATIONS INC. (VZ) is a large-cap value stock in the communication services sector. The rating under our Peter Lynch-based strategy increased from 72% to 74% 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: Verizon Communications Inc. is a holding company. The Company, through its subsidiaries, provides communication, information and entertainment products and services to consumers, businesses and government agencies. Its reportable segments are Verizon Consumer Group and Verizon Business Group. Its Consumer segment provides wireless and wireline communications services. Its wireless services are provided over wireless networks in the United States (US) under the Verizon brand. Its wireline services are provided in nine states in the Mid-Atlantic and Northeastern United States, as well as in Washington D.C., over its Fios-branded fiber optic network and a traditional copper-based network. . Its segment provides wireless and wireline communications services and products, including data, video and conferencing services, security and managed network services, local and long distance voice services and network access. to provide various Internet of Things services and products.

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.

ADJUSTED RETURN-TO-GROWTH (PEG) P/E RATIO: PASS
EARNINGS PER SHARE: PASS
TOTAL DEBT/EQUITY RATIO: FAIL
FREE MOVEMENT OF CAPITAL: NEUTRAL
NET CASH : NEUTRAL

Detailed analysis of VERIZON COMMUNICATIONS INC.

Full Guru Analysis for VZ

Full factor ratio for VZ

EQUITY BANCSHARES INC (EQBK) is a small-cap stock in the Regional Banks sector. The rating under our Peter Lynch-based strategy went from 81% to 100% 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: Equity Bancshares, Inc. is a bank holding company. The Company’s subsidiary, Equity Bank, provides a range of financial services primarily to businesses and business owners as well as individuals through its network of approximately 69 branches located in Arkansas, Kansas, Missouri and Oklahoma. The Company’s activities include the delivery of loan and deposit products to its customers. The Company offers commercial banking products and other services, including lending business, deposit products and other products and services. It offers a suite of online banking solutions, including access to account balances, online transfers, online bill payment and electronic delivery of customer statements, mobile banking solutions for iPhone and Android phones, including remote check deposit with mobile bill payment. In addition, the Company offers commercial cash management, wire transfer, automated clearing house (ACH) issuance and stop payment services.

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.

P/E/GROWTH RATIO: PASS
SALES AND P/E RATIO: NEUTRAL
EPS GROWTH RATE: PASS
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSETS RATIO: PASS
RETURN ON ASSETS: PASS
FREE MOVEMENT OF CAPITAL: NEUTRAL
NET CASH : BONUS PASS

Detailed analysis of EQUITY BANCSHARES INC

Full Guru Analysis for EQBK

Full Factor Report for EQBK

More details on Validea’s Peter Lynch strategy

Peter Lynch Action Ideas

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 no-nonsense approach and quick wit have made him one of the most highly rated investors on Wall Street. (“Go for a business that any idiot can run – because sooner or later any idiot will probably run it,” is one of his many pearls of wisdom.) Lynch One’s bestseller Up on Wall Street is sort of a “stocks for the man/all the woman”, breaking down its approach into easy-to-understand concepts.

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 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.