Validea Joel Greenblatt Strategy Daily Upgrade Report – 4/29/2022

BILLIONhe following are today’s upgrades for Validea’s Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.

RCM TECHNOLOGIES INC (RCMT) is a small-cap value stock in the Construction Services industry. The rating according to our strategy based on Joel Greenblatt changed from 10% to 90% 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: RCM Technologies, Inc. is a provider of business and technology solutions through the deployment of engineering, specialty health care and information technology services. The Company operates through three segments: Engineering, Specialty Health Care and Information Technology Services. Its Engineering segment provides engineering and design services, technical writing and digital documentation across marine, locomotive, transportation and aerospace markets, and engineering, procurement and construction management (EPC), as well as demand side management/energy conservation services. The specialty health care segment provides staffing solutions of health care professionals, nurses, paraprofessionals, physicians and therapists and teletherapy services. The Information Technology (IT), segment provides enterprise business solutions, application services, infrastructure solutions, life sciences solutions and other vertical specific offerings.

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.

EARNINGS YIELD: NEUTRAL
RETURN ON TAGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS

Detailed Analysis of RCM TECHNOLOGIES INC

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Full Factor Report for RCMT

ARCH RESOURCES INC (ARCH) is a mid-cap value stock in the Coal industry. The rating according to our strategy based on Joel Greenblatt changed from 40% 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: Arch Resources, Inc. is a producer of coal and metallurgical products for steel industry. The Company is a supplier of premium High-Vol A metallurgical coal globally. The Company’s segments include Metallurgical (MET) and Thermal. The MET segment contains the Company’s metallurgical operations in West Virginia. The Thermal segment contains the Company’s thermal operations in Wyoming and Colorado. It also produces low-emitting thermal products for sale to both domestic and international customers. The Company produces sub-bituminous thermal. It supplies thermal products to power generators and industrial customers from mines in Colorado and Illinois. The Company operates approximately seven active mines located in three of the coal-producing regions of the United States. The locations of its mines and access to export facilities enable it to ship coal worldwide.

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.

EARNINGS YIELD: NEUTRAL
RETURN ON TAGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS

Detailed Analysis of ARCH RESOURCES INC

Full Guru Analysis for ARCH

Full Factor Report for ARCH ONLY

SM ENERGY CO (SM) is a mid-cap growth stock in the Oil & Gas Operations industry. The rating according to our strategy based on Joel Greenblatt changed from 70% to 90% 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: SM Energy Company is an independent energy company. The Company is engaged in the acquisition, exploration, development, and production of oil, gas, and natural gas liquid (NGL) in the state of Texas. Its operations are concentrated in the Midland Basin and South Texas. The Company has drilling and completion activities within its RockStar and Sweetie Peck positions in the Midland Basin focussed on delineating, developing, and expanding its Midland Basin position. Its Midland Basin assets are comprised of approximately 81,000 net acres located in the Permian Basin in West Texas and include its RockStar assets in Howard and Martin Counties, Texas and its Sweetie Peck assets in Upton and Midland Counties, Texas. Its South Texas assets are comprised of approximately 155,000 net acres located in Dimmit and Webb Counties, Texas. Its operations in South Texas are focused on production from both the Eagle Ford shale formation and Austin Chalk formation.

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.

EARNINGS YIELD: NEUTRAL
RETURN ON TAGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS

Detailed Analysis of SM ENERGY CO

Full Guru Analysis for SM

Full Factor Report for SM

MEDNAX INC (MD) is a small-cap growth stock in the Healthcare Facilities industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 80% 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: Mednax, Inc. is a provider of physician services, including newborn, maternal-fetal, pediatric cardiology, and other pediatric subspecialty care. The Company provides neonatal care, which provides clinical care to babies born prematurely or with complications within specific units at hospitals, preeminent neonatal intensive care units (NICUs), through its network of affiliated neonatal physician subspecialists (neonatologists), neonatal nurse practitioners and other pediatric clinician. It offers maternal-fetal care, which provides inpatient and office-based clinical care to expectant mothers and their unborn babies through its affiliated maternal-fetal medicine subspecialists as well as obstetricians and other clinicians, such as maternal-fetal nurse practitioners and certified nurse mid -wives. It provides other pediatric subspecialty care services, which includes other pediatric subspecialists, such as, pediatric hospitalists, pediatric surgeons, and pediatric ophthalmologists.

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.

EARNINGS YIELD: NEUTRAL
RETURN ON TAGIBLE CAPITAL: NEUTRAL
FINAL RANKING: FAIL

Detailed Analysis of MEDNAX INC

Full Guru Analysis for MD

Full Factor Report for MD

AMN HEALTHCARE SERVICES, INC. (AMN) is a mid-cap value stock in the Business Services industry. The rating according to our strategy based on Joel Greenblatt changed from 80% to 90% 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: AMN Healthcare Services, Inc. provides healthcare workforce solutions and staffing services at acute and sub-acute care hospitals and other healthcare facilities throughout the United States. The Company operates through three segments: nurse and allied solutions; physician and leadership solutions, and technology and workforce solutions. The nurse and allied solutions segment includes its travel nurse staffing, rapid response nurse staffing and labor disruption, allied staffing, local staffing, and revenue cycle solutions businesses. The physician and leadership solutions segment includes its locum tenens staffing, healthcare interim leadership staffing, executive search, and physician permanent placement businesses. The technology and workforce solutions segment includes its language interpretation services, vendor management systems, credentialing, and flex pool management businesses. Its Clients include acute-care hospitals, community health centers, and clinics.

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.

EARNINGS YIELD: NEUTRAL
RETURN ON TAGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS

Detailed Analysis of AMN HEALTHCARE SERVICES, INC.

Full Guru Analysis for AMN

Full Factor Report for AMN

RYERSON HOLDING CORP (RYI) is a small-cap value stock in the Iron & Steel industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 80% 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: Ryerson Holding Corporation is a value-added processor and distributor of industrial metals. The Company, through its metals service centers segment, provides value-added processing and distribution of industrial metals with operations in the United States, Canada, Mexico, and China. It purchases a quantity of metal products from primary producers and sells these materials in smaller quantities to a range of metals-consuming industries. It carries a line of approximately 75,000 products in stainless steel, aluminum, carbon steel, and alloy steels and a limited line of nickel and red metals in various shapes and forms. The Company operates through its subsidiaries, JT Ryerson in the United States; Ryerson Canada, Inc., in Canada and Ryerson Metals de Mexico, S. de RL de CV, in Mexico. In addition to its North American operations, it conducts materials processing and distribution operations in China through its wholly owned subsidiary, Ryerson China Limited.

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.

EARNINGS YIELD: NEUTRAL
RETURN ON TAGIBLE CAPITAL: NEUTRAL
FINAL RANKING: FAIL

Detailed Analysis of RYERSON HOLDING CORP

Full Guru Analysis for RYI

Full Factor Report for RYI

More details on Validea’s Joel Greenblatt strategy

Joel Greenblatt Stock Ideas

About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two — and only two — fundamental variables. The “Magic Formula,” as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500’s 12.4 percent return during that time. Greenblatt also produces exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over 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 the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here

The views and expressed opinions herein are the views and opinions of the author and do not certainly reflect those of Nasdaq, Inc.

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