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09 March
Validea Peter Lynch Strategy Daily Upgrade Report - 3/9/2024

The following are today's upgrades for Validea's P/E/Growth Investor model based on the published strategy of Peter Lynch. This strategy looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.

AERSALE CORP (ASLE) is a small-cap growth stock in the Aerospace & Defense industry. The rating according to our strategy based on Peter Lynch changed from 72% 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: AerSale Corporation is a provider of aftermarket commercial aircraft and engines (flight equipment) and their parts to airlines, leasing companies, manufacturers of original equipment, government and defense contractors, and repair and overhaul service providers. The Company's segments include Asset Management Solutions and Technical Operations (TechOps). Asset Management Solutions segment comprised of activities that extract value from strategic asset acquisitions either as whole assets or by disassembling for used serviceable material (USM). Its TechOps segment provides internal and third-party aviation services, including internally developed engineered solutions, full heavy aircraft maintenance and modification, component maintenance, repair, and overhaul (MRO), as well as end-of-life disassembly services. The TechOps segment also includes MRO services for landing gear, thrust reversers, hydraulic systems, and other aircraft components.

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.

Detailed Analysis of AERSALE CORP

ING GROEP NV (ADR) (ING) is a large-cap value stock in the Money Center Banks industry. The rating according to our strategy based on Peter Lynch changed from 83% to 98% 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: ING Groep N.V. (ING) is a financial institution. The Company offers banking services. The Company's segments include Retail Netherlands, which offers current and savings accounts, business lending, mortgages and other consumer lending in the Netherlands; Retail Belgium, which offers products that are similar to those in the Netherlands; Retail Germany, which offers current and savings accounts, mortgages and other customer lending; Retail Other, which offers products that are similar to those in the Netherlands, and Wholesale Banking, which offers wholesale banking activities (a full range of products from cash management to corporate finance), real estate and lease. The Company's Retail Banking business lines provide products and services to individuals, small and medium-sized enterprises (SMEs) and mid-corporates. ING's banking activities in Australia are undertaken 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 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.

Detailed Analysis of ING GROEP NV (ADR)

KORN FERRY (KFY) is a mid-cap growth stock in the Business Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 74% 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: Korn Ferry is an organizational consulting company. The Company operates through eight segments: Consulting, Digital, Executive Search North America, Executive Search EMEA, Executive Search Asia Pacific, Executive Search Latin America, Professional Search & Interim and RPO. Its segments operate through five lines of business: Consulting, Digital, Executive Search, Professional Search & Interim and recruitment process outsourcing (RPO). Consulting aligns organization structure, performance and people to drive growth by addressing organizational strategy, assessment, succession, and leadership. Digital uses an artificial intelligence-based machine-learning platform to identify structure, roles, capabilities and behaviors needed. Executive Search helps organizations recruit board level, chief executive and other senior executive and general management talent. Professional Search & Interim delivers enterprise talent acquisition solutions for professional level middle and upper management.

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.

Detailed Analysis of KORN FERRY

QUANEX BUILDING PRODUCTS CORP (NX) is a small-cap growth stock in the Constr. - Supplies & Fixtures industry. The rating according to our strategy based on Peter Lynch changed from 72% to 74% 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: Quanex Building Products Corporation manufactures components for original equipment manufacturers (OEM) in the building products industry. The Company's components can be categorized as window and door (fenestration) components, and kitchen and bath cabinet components. Its fenestration components include flexible insulating glass spacers, extruded vinyl profiles, window and door screens, and precision-formed metal and wood products. It operates through three segments: North American Fenestration segment, which is engaged in manufacturing vinyl profiles, insulating glass (IG) spacers, screens and other fenestration components; European Fenestration segment, which includes United Kingdom-based vinyl extrusion business, manufacturing vinyl profiles and conservatories, and the European insulating glass business manufacturing IG spacers, and North American Cabinet Components segment, which includes North American cabinet door and components business and two wood-manufacturing plants.

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.

Detailed Analysis of QUANEX BUILDING PRODUCTS CORP

About Peter Lynch: Perhaps the greatest mutual fund manager of all-time, Lynch guided Fidelity Investment's Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, almost doubling the S&P 500's 15.8 percent yearly return over that time. Lynch's common sense approach and quick wit made him one of the most quoted investors on Wall Street. ("Go for a business that any idiot can run -- because sooner or later, any idiot probably is going to run it," is one of his many pearls of wisdom.) Lynch's bestseller One Up on Wall Street is something of a "stocks for the everyman/everywoman", breaking his approach down into easy-to-understand concepts.

About Validea: Validea is aninvestment researchservice 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.