Validea Peter Lynch Strategy Daily Update Report – 06/08/2022
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.
GLOBAL PARTNERS LP (GLP) is a small-cap value stock in the retail (grocery) 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: Global Partners LP is an owner, supplier and operator of gas stations and convenience stores, which has access to networks of refined petroleum products and renewable fuels terminals. The Company has a portfolio of approximately 1,595 owned, leased and/or supplied gas stations, including 295 directly operated convenience stores, primarily in the Northeast. It has three segments. The Wholesale segment is engaged in the logistics of the sale, collection, blending, storage and transportation of refined petroleum products, gasoline blends, renewable fuels, crude oil and propane. The Gasoline Distribution and Station Operation segment is engaged in the distribution of gasoline, and includes the sale of branded and unbranded gasoline to service station operators and contractors. The Commercial segment includes sales and deliveries to public sector end-user customers and large commercial and industrial end users of unbranded gasoline, heating oil, diesel, kerosene, residual oil and bunker fuel.
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 provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.
| SALES: | PASS |
| PERFORMANCE AGAINST S&P 500: | PASS |
| YIELD-ADJUSTED P/E/GROWTH (PEG) RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | FAIL |
| FREE MOVEMENT OF CAPITAL: | NEUTRAL |
| NET CASH : | NEUTRAL |
Detailed analysis of GLOBAL PARTNERS LP
Full guru analysis for GLP
Full factor ratio for BPL
TURQUOISE HILL RESOURCES LTD (TRQ) is a mid-cap value stock in the metal mining industry. The rating under our Peter Lynch-based strategy rose from 72% to 91% 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: Turquoise Hill Resources Ltd. is an international mining company based in Canada. The Company is primarily focused on the operation and further development of the Oyu Tolgoi copper-gold mine in southern Mongolia. The Company operates through one segment: Oyu Tolgoi. Oyu Tolgoi is a new copper-gold mine located in the South Gobi region of Mongolia, approximately 550 kilometers (km) south of the capital, Ulaanbaatar, and 80 km north of the border between Mongolia and China. The Company’s Oyu Tolgoi has five mineralized deposits, which include Oyut Deposit, Hugo North (Lift One) Hugo North (Lift Two), Hugo South and Heruga. The Oyu Tolgoi mine is held through a 66% interest in Oyu Tolgoi LLC; the remaining 34% stake is held by Erdenes Oyu Tolgoi LLC.
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 provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.
| SALES INVENTORY: | PASS |
| ADJUSTED RETURN-TO-GROWTH (PEG) P/E RATIO: | PASS |
| EARNINGS PER SHARE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE MOVEMENT OF CAPITAL: | NEUTRAL |
| NET CASH : | NEUTRAL |
Detailed analysis of TURQUOISE HILL RESOURCES LTD
Full Guru Analysis for Tariff Rate Quota
Full factor report for TRQ
ING GROEP SA (ADR) (ING) is a large-cap stock in the Regional Banks sector. The rating under our Peter Lynch-based strategy increased from 6% to 96% depending on the company’s underlying fundamentals and the stock’s 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: ING Groep NV (ING) is a financial institution. The Company provides banking services. The Company’s segments include Retail Netherlands, which offers current and savings accounts, business loans, mortgages and other consumer loans in the Netherlands; Retail Belgium, which offers products similar to those in the Netherlands; Retail Germany, which offers current and savings accounts, mortgages and other customer loans; Retail Other, which offers products similar to those in the Netherlands, and Wholesale Banking, which offers wholesale banking (a full range of products from cash management to corporate finance), real estate and leasing. The Company’s Retail Banking business segments provide products and services to individuals, small and medium-sized enterprises (SMEs) and medium-sized enterprises. ING’s banking activities in Australia are carried out by ING Bank (Australia) Limited (trading as ING Direct) and ING Bank NV Sydney Branch.
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 provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.
| SALES: | PASS |
| PERFORMANCE AGAINST S&P 500: | PASS |
| YIELD-ADJUSTED P/E/GROWTH (PEG) RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | NEUTRAL |
| EQUITY/ASSETS RATIO: | PASS |
| RETURN ON ASSETS: | FAIL |
| FREE MOVEMENT OF CAPITAL: | NEUTRAL |
| NET CASH : | BONUS PASS |
Detailed analysis of ING GROEP NV (ADR)
Full Guru Analysis for ING
Full factor report for ING
RITCHIE BROS AUCTIONEERS INC (RBA) is a mid-cap growth stock in the Miscellaneous sector. Capital goods industry. The rating under our Peter Lynch-based strategy increased from 69% to 87% 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: Ritchie Bros. Auctioneers Incorporated is a global asset management, disposal and servicing company. The Company is committed to providing customers with the purchase and sale of used heavy equipment, trucks and other assets. It offers its customers solutions for buying and selling used industrial equipment and other durable assets through its on-site live auctions, online marketplaces, SEO services and its private brokerage services. Its segment includes Auctions and Markets, which includes the Company’s live on-site auctions, its online auctions and markets, and its brokerage service. It sells a range of commercial and industrial assets, as well as government surplus. It also offers industry solutions, including GovPlanet, TruckPlanet and Kruse Energy Auctioneers, as well as leasing through Ritchie BrosRitchie Bros. Financial Services. It operates in various sectors, including construction, transportation, agriculture, energy, mining and forestry.
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 provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.
| P/E/GROWTH RATIO: | PASS |
| SALES AND P/E RATIO: | PASS |
| SALES INVENTORY: | PASS |
| EPS GROWTH RATE: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| FREE MOVEMENT OF CAPITAL: | NEUTRAL |
| NET CASH : | NEUTRAL |
Detailed analysis of RITCHIE BROS AUCTIONEERS INC
Complete Guru Analysis for RBA
Full factor report for RBA
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.
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