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11 April
Validea's Top Consumer Discretionary Stocks Based On Peter Lynch - 4/11/2024

The following are the top rated Consumer Discretionary stocks according to 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.

SKYLINE CHAMPION CORP (SKY) is a mid-cap growth stock in the Mobile Homes & RVs industry. The rating according to our strategy based on Peter Lynch is 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: Skyline Champion Corporation is a producer of factory-built housing in North America. The Company's segments include U.S. Factory-built Housing and Canadian Factory-built Housing. The U.S. Factory-built Housing segment includes manufacturing and retail housing operations. It offers a portfolio of manufactured and modular homes, park model RVs, accessory dwelling units and modular buildings for the multi-family and hospitality sectors. It builds homes under various brand names in the factory-built housing industry, including Skyline Homes, Champion Home Builders, Genesis Homes, Athens Park Models, Dutch Housing, Atlantic Homes, Excel Homes, Homes of Merit, New Era, Redman Homes, ScotBilt Homes, Shore Park, Silvercrest, and Titan Homes in the U.S., and Moduline and SRI Homes in western Canada. It operates a factory-direct manufactured home retail business, marketed under the Titan Factory Direct and Champion Homes Center brands, with over 31 sales centers spanning the United States.

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 SKYLINE CHAMPION CORP

BEAZER HOMES USA INC (BZH) is a small-cap value stock in the Construction Services industry. The rating according to our strategy based on Peter Lynch is 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: Beazer Homes USA, Inc. is a geographically diversified homebuilder. The Company operates through three segments: West, East and Southeast. Its West segment includes Arizona, California, Nevada, and Texas. Its East segment includes Indiana, Maryland/Delaware, Tennessee, and Virginia. Its Southeast segment includes Florida, Georgia, North Carolina, and South Carolina. It uses its digital and traditional marketing vehicles and other promotional activities, including its Website www.beazer.com, real estate listing sites, digital advertising, including search engine marketing and display advertising, social media, video, brochures, direct marketing, and out-of-home advertising, including billboards and signage located in the areas of its developments, as well as additional activities. The Company has operations in approximately 13 states within three geographic regions in the United States. The Company has maintained and owned approximately 242 model homes.

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 BEAZER HOMES USA INC

TAYLOR MORRISON HOME CORP (TMHC) is a mid-cap value stock in the Construction Services industry. The rating according to our strategy based on Peter Lynch is 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: Taylor Morrison Home Corporation (Taylor Morrison) is a national land developer and homebuilder in the United States. The Company's principal business is residential homebuilding and the development of lifestyle communities with operations across 11 states. The Company operates through four segments: East, Central, West and Financial Services. It provides an assortment of homes across a range of price points to appeal to an array of consumer groups. It designs, builds and sells single and multifamily detached and attached homes in traditionally high growth markets for entry level, move-up, and resort lifestyle buyers. It operates under various brand names, including Taylor Morrison, Darling Homes Collection by Taylor Morrison, and Esplanade. It also has a Build-to-Rent homebuilding business, which operates Yardly brand name. In addition, it develops and constructs multi-use properties consisting of commercial space, retail, and multifamily properties under the Urban Form brand name.

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 TAYLOR MORRISON HOME CORP

TAPESTRY INC (TPR) is a mid-cap value stock in the Apparel/Accessories industry. The rating according to our strategy based on Peter Lynch is 72% 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: Tapestry, Inc. is a global house of luxury accessories and lifestyle brands. The Company's brands include Coach, Kate spade New York, and Stuart Weitzman. The Company operates through three segments: Coach, Kate Spade and Stuart Weitzman. The Coach segment includes global sales of Coach products to customers through Coach operated stores, including e-commerce sites and concession shop-in-shops, and sales to wholesale customers and through independent third-party distributors. The Kate Spade segment includes global sales primarily of kate spade new york brand products to customers through Kate Spade operated stores, including e-commerce sites and concession shop-in-shops, sales to wholesale customers, and through independent third-party distributors. The Stuart Weitzman segment includes global sales of Stuart Weitzman brand products primarily through Stuart Weitzman operated stores, sales to wholesale customers, through e-commerce sites, and through independent third-party distributors.

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 TAPESTRY INC

POLARIS INC (PII) is a mid-cap value stock in the Mobile Homes & RVs industry. The rating according to our strategy based on Peter Lynch is 72% 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: Polaris Inc. is engaged in designing, engineering, manufacturing and marketing of powersports vehicles. The Company also designs and manufactures or sources parts, garments and accessories (PG&A), which includes aftermarket accessories and apparel. The Company operates through three segments: Off Road, On Road and Marine. The Off Road segment consists of off-road vehicles and snowmobiles. The On Road segment designs and manufactures motorcycles, moto-roadsters, light duty hauling, and passenger vehicles. The Marine segment designs and manufactures boats that are designed to compete in key segments of the recreational marine industry, specifically pontoon and deck boats. Its product line-up includes the RANGER, RZR and Polaris XPEDITION and GENERAL side-by-side off-road vehicles; Sportsman all-terrain off-road vehicles; military and commercial off-road vehicles; snowmobiles; Indian Motorcycle mid-size and heavyweight motorcycles; Slingshot moto-roadsters, and pontoon and deck boats.

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 POLARIS INC

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.