TThe following are today’s upgrades to Validea’s Earnings Yield Investor model based on Joel Greenblatt’s published strategy. This value model looks for companies with high return on capital and earnings.
DICK’S SPORTING GOODS INC. (DCS) is a mid-cap value stock in the specialty retail industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% based on the company’s underlying fundamentals and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock, and a score above 90% usually indicates strong interest.
Company description: Dick’s Sporting Goods, Inc. is an omnichannel sporting goods retailer. The Company offers sports equipment, apparel, footwear and accessories through dedicated teammates, in-store services and specialized shop-in-shops. The Company also owns and operates Golf Galaxy and Field & Stream specialty stores, as well as GameChanger, a youth sports mobile application for scheduling, communication, live scores and video streaming. It offers its products through an e-commerce platform integrated with its network of stores, offering athletes the convenience and know-how of a 24/7 store. The company operates from approximately 730 locations across the United States.
The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.
| RETURN ON EARNINGS: | NEUTRAL |
| RETURN ON MATERIAL CAPITAL: | NEUTRAL |
| FINAL RANKING: | HAPPEN |
DICKS SPORTING GOODS INC. Detailed Analysis
Full guru analysis for DKS
Full factor report for DKS
GRAND CANYON EDUCATION INC. (LOPE) is a mid-cap growth stock in the school industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% based on the company’s underlying fundamentals and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock, and a score above 90% usually indicates strong interest.
Company description: Grand Canyon Education, Inc. is engaged in the provision of post-secondary education. The company is a regionally accredited university. The company offers the degrees including Doctor of Education, Doctor of Business Administration, Doctor of Nursing Practice, Doctor of Philosophy, Education Specialist, Master of Divinity, Master of Arts, Master of Education, Master of Business Administration and Master of Public Administration , Master of Public Health, Master of Science, Bachelor of Arts, Bachelor of Science and a number of programs for their degrees. It also offers certificate programs consisting of a series of courses focused on a specific area of study for post-baccalaureate and postgraduate students. The Company offers its ground-based programs to students in three 15-week semesters in a calendar year and to online students in courses generally lasting between 5 and 16 weeks throughout the calendar year.
The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.
| RETURN ON EARNINGS: | NEUTRAL |
| RETURN ON MATERIAL CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis by GRAND CANYON EDUCATION INC
Complete guru analysis for LOPE
Full factor report for LOPE
IRONWOOD PHARMACEUTICALS, INC. (IRWD) is a small-cap value stock in the biotechnology and pharmaceuticals industries. The rating according to our strategy based on Joel Greenblatt changed from 70% to 80% based on the company’s underlying fundamentals and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock, and a score above 90% usually indicates strong interest.
Company description: Ironwood Pharmaceuticals, Inc. is a biotechnology company. The Company is advancing product opportunities in areas of unmet need, including irritable bowel syndrome with constipation (IBS C) and chronic idiopathic constipation (CIC), hyperuricemia associated with uncontrolled gout, uncontrolled gastroesophageal reflux disease (uncontrolled GERD), and vascular and fibrotic diseases. It is engaged in the Human Therapeutics business. Its product Linaclotide is available in the United States under the brand name LINZESS for adult men and women with IBS C or CIC and in certain European countries under the brand name CONSTELLA for adult men and women with IBS C. It is also developing IW-3718, a gastric-retentive formulation of a bile acid sequestrant with the potential to provide symptomatic relief to patients with uncontrolled GERD. Its vascular/fibrotic programs include IW-1973 and IW-1701 targeting soluble guanylate cyclase (sGC).
The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.
| RETURN ON EARNINGS: | NEUTRAL |
| RETURN ON MATERIAL CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis by IRONWOOD PHARMACEUTICALS, INC.
Full guru analysis for IRWD
Full factor report for IRWD
More details on Validea’s Joel Greenblatt strategy
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About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats the Market, hedge fund manager Joel Greenblatt described an amazingly simple way to beat the market using two – and only two – fundamental variables. The “Magic Formula,” as he called it, produced backtested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500’s 12.4 percent return over that time. Greenblatt also achieved exceptional returns as a managing partner at Gotham Capital, a New York City-based hedge fund he founded. The company has achieved an average annual return of a remarkable 40 percent for more than two decades.
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 time, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. You can find more information about Validea here
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
