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16 May
Validea's Top Consumer Discretionary Stocks Based On Benjamin Graham - 5/16/2024

The following are the top rated Consumer Discretionary stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.

MALIBU BOATS INC (MBUU) is a small-cap stock in the Recreational Products industry. The rating according to our strategy based on Benjamin Graham is 86% 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: Malibu Boats, Inc. is a designer, manufacturer and marketer of a diverse range of recreational powerboats, including performance sport boats, sterndrive and outboard boats. The Company's brands include Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes and Cobalt. The Company's Malibu segment includes manufacturing, distribution, marketing and sale of Malibu and Axis performance sports boats throughout the world. The Company's product portfolio of premium brands is used for a broad range of recreational boating activities including, among others, water sports, general recreational boating and fishing. The Company's Saltwater Fishing segment is engaged in manufacturing, distribution, marketing and sale throughout the world of Pursuit boats and the Maverick Boat Group boats (Maverick, Cobia, Pathfinder and Hewes). The Company's Cobalt segment is engaged in manufacturing, distribution, marketing and sale of Cobalt boats throughout the world.

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 MALIBU BOATS INC

LEGACY HOUSING CORP (LEGH) is a small-cap value stock in the Mobile Homes & RVs industry. The rating according to our strategy based on Benjamin Graham is 86% 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: Legacy Housing Corporation builds, sells, and finances manufactured homes and tiny houses. The Company manufactures and provides for the transport of mobile homes, provides wholesale financing to dealers and mobile home parks and provides retail financing to consumers and is involved in financing and developing new manufactured home communities. Its manufactured homes and tiny houses are distributed through a network of independent retailers and Company-owned stores and also sold directly to manufactured home communities. It operates primarily in the southern United States. The Company offers its customers an array of homes ranging in size from approximately 395 to 2,667 square feet consisting of one to five bedrooms, and one to 31/2 bathrooms. It manufactures its mobile homes at plants located in Fort Worth, Texas, Commerce, Texas and Eatonton, Georgia. Its homes are marketed under the Legacy brand name. It also sells homes directly to consumers, through its own retail stores.

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 LEGACY HOUSING CORP

CALERES INC (CAL) is a small-cap value stock in the Retail (Apparel) industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Caleres, Inc. is a global footwear company. The Company operates retail shoe stores and e-commerce websites, and designs, develops, sources, manufactures and distributes footwear for people of all ages. The Company operates through two segments: Famous Footwear and Brand Portfolio. The Famous Footwear segment consists of its Famous Footwear retail stores, famousfootwear.com and famousfootwear.ca. The Famous Footwear segment operates over 860 stores selling primarily branded footwear for the entire family. The Brand Portfolio segment includes its wholesale operations that designs, develops, sources, manufactures, markets and distributes branded, licensed and private-label footwear primarily to online retailers, national chains, department stores, independent retailers and mass merchandisers, as well as Company-owned Famous Footwear, Sam Edelman, Naturalizer and Allen Edmonds stores and e-commerce businesses, including naturalizer.com, naturalizer.ca, naturalizer.co.uk and others.

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 CALERES INC

TRI POINTE HOMES INC (DELAWARE) (TPH) is a mid-cap value stock in the Construction Services industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Tri Pointe Homes, Inc. operates as a homebuilder, which is engaged in the design, construction, and sale of single-family attached and detached homes. It offers its services across ten states, including Arizona, California, Colorado, Maryland, Nevada, North Carolina, South Carolina, Texas, Virginia and Washington, and the District of Columbia. The Company operates through two businesses: homebuilding and financial services. Its three homebuilding segments include West Region, which includes Arizona, California, Nevada, and Washington; Central Region, which includes Colorado and Texas, and East Region, which includes the District of Columbia, Maryland, North Carolina, South Carolina, and Virginia. Its Tri Pointe Solutions financial services operation comprises its Tri Pointe Connect mortgage financing operations, its Tri Pointe Assurance title and escrow services operations, and its Tri Pointe Advantage property and casualty insurance agency operations.

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 TRI POINTE HOMES INC (DELAWARE)

GENERAL MOTORS CO (GM) is a large-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Benjamin Graham is 71% 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: General Motors Company designs, builds and sells trucks, crossovers, cars and automobile parts and provides software-enabled services and subscriptions worldwide. The Company provides automotive financing services through its General Motors Financial Company, Inc. (GM Financial) segment. GM North America (GMNA) and GM International (GMI) develop, manufacture and/or markets vehicles under the Buick, Cadillac, Chevrolet and GMC brands. The Company's segments include GMNA, GMI, Cruise and GM Financial. Its Cruise segment is engaged in the development and commercialization of autonomous vehicle technology. Its software-enabled services and subscriptions, including OnStar, our advanced driver-assistance systems (ADAS), including Super Cruise driver assistance technology, and its end-to-end software platform. The Company is also focused on investing in electric vehicles (EVs) and AVs, software-enabled services and subscriptions and new business opportunities.

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 GENERAL MOTORS CO

About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.

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.