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30 May
Validea's Top Consumer Discretionary Stocks Based On Martin Zweig - 5/30/2024

The following are the top rated Consumer Discretionary stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.

DREAM FINDERS HOMES INC (DFH) is a mid-cap value stock in the Construction Services industry. The rating according to our strategy based on Martin Zweig is 77% 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: Dream Finders Homes, Inc. (DFHs) is a homebuilder company. The Company builds single-family homes throughout the Southeast, Mid-Atlantic and Midwest, including Florida, Texas, North Carolina, South Carolina, Georgia, Tennessee, Colorado, and the Washington, D.C. metropolitan area, which comprises of Northern Virginia and Maryland. The Company has also expanded its operations in Charleston and Greenville, South Carolina, and Nashville, Tennessee. Through its financial services joint ventures, DFH also provides mortgage financing and title services to homebuyers. It provides financial services operations that offers title insurance primarily through DF Title, LLC, doing business as Golden Dog Title & Trust and mortgage banking solutions primarily through its mortgage banking joint venture, Jet HomeLoans, LP. The Company sells homes under the Dream Finders Homes, DF Luxury, Craft Homes, and Coventry Homes brands.

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.

P/E RATIO:PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:PASS
SALES GROWTH RATE:PASS
CURRENT QUARTER EARNINGS:PASS
QUARTERLY EARNINGS ONE YEAR AGO:PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:FAIL
EARNINGS PERSISTENCE:PASS
LONG-TERM EPS GROWTH:PASS
TOTAL DEBT/EQUITY RATIO:FAIL
INSIDER TRANSACTIONS:PASS

Detailed Analysis of DREAM FINDERS HOMES INC

DFH Guru Analysis

DFH Fundamental Analysis

CENTURY COMMUNITIES INC (CCS) is a mid-cap value stock in the Construction Services industry. The rating according to our strategy based on Martin Zweig is 69% 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: Century Communities, Inc. is engaged in the development, design, construction, marketing and sale of single-family attached and detached homes. The Company is also involved in the entitlement and development of the underlying land. Its homebuilding operations are organized into the five segments: West, Mountain, Texas, Southeast, and Century Complete. The Company builds and sells under its Century Communities and Century Complete brands. Its Century Communities brand offers a range of buyer profiles including entry-level, first and second time move-up, and lifestyle homebuyers, and provides its homebuyers with the ability to personalize their homes through certain option and upgrade selections. Its Century Complete brand targets entry-level homebuyers, primarily sells homes through retail studios and the Internet. It also operates in 18 states and over 45 markets across the United States and offers title, insurance and lending services in select markets.

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.

P/E RATIO:PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:FAIL
SALES GROWTH RATE:PASS
CURRENT QUARTER EARNINGS:PASS
QUARTERLY EARNINGS ONE YEAR AGO:PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:PASS
EARNINGS PERSISTENCE:FAIL
LONG-TERM EPS GROWTH:PASS
TOTAL DEBT/EQUITY RATIO:FAIL
INSIDER TRANSACTIONS:PASS

Detailed Analysis of CENTURY COMMUNITIES INC

CCS Guru Analysis

CCS Fundamental Analysis

JD.COM INC(ADR) (JD) is a large-cap value stock in the Retail (Specialty) industry. The rating according to our strategy based on Martin Zweig is 69% 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: JD.com Inc is a holding company mainly engaged in e-commerce business. The Company operates two segments. JD Retail segment consists of online retail, online marketplace and marketing services in China. The Company offers electronics products, home appliances and other general merchandise categories. The Company has its own online platform, which third-party merchants offer products on it. The Company provides marketing and display advertising services to third-party merchants, suppliers and other business partners on its website channels. New Businesses segment includes logistics services provided to third parties, overseas business, technology initiatives, as well as asset management services to logistics property investors and sale of development properties. It offers comprehensive supply chain solutions to third parties through JD Logistics, including warehousing, transportation, delivery and after-sales service. The Company mainly conducts its businesses in the China market.

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.

P/E RATIO:PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:PASS
SALES GROWTH RATE:FAIL
CURRENT QUARTER EARNINGS:PASS
QUARTERLY EARNINGS ONE YEAR AGO:PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:PASS
EARNINGS PERSISTENCE:FAIL
LONG-TERM EPS GROWTH:FAIL
TOTAL DEBT/EQUITY RATIO:PASS
INSIDER TRANSACTIONS:PASS

Detailed Analysis of JD.COM INC(ADR)

JD Guru Analysis

JD Fundamental Analysis

PULTEGROUP, INC. (PHM) is a large-cap value stock in the Construction Services industry. The rating according to our strategy based on Martin Zweig is 69% 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: PulteGroup, Inc. is a homebuilder in the United States. The Company's segments include Homebuilding and Financial Services. The Homebuilding operations are engaged in the acquisition and development of land primarily for residential purposes within the United States and the construction of housing on such land. The Financial Services segment consist principally of mortgage banking, title, and insurance agency operations, through Pulte Mortgage LLC (Pulte Mortgage) and other subsidiaries. Pulte Mortgage arranges financing through the origination of mortgage loans primarily for the benefit of its homebuyers. Its Homebuilding operations are aggregated into six segments: Northeast, Southeast, Florida, Midwest, Texas and West. The Company, through its brands, such as Centex, Pulte Homes, Del Webb, DiVosta Homes, John Wieland Homes and Neighborhoods, and American West offers variety of home designs with varying levels of options and amenities to its customer groups.

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.

P/E RATIO:PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:FAIL
SALES GROWTH RATE:PASS
CURRENT QUARTER EARNINGS:PASS
QUARTERLY EARNINGS ONE YEAR AGO:PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:FAIL
EARNINGS PERSISTENCE:PASS
LONG-TERM EPS GROWTH:PASS
TOTAL DEBT/EQUITY RATIO:PASS
INSIDER TRANSACTIONS:PASS

Detailed Analysis of PULTEGROUP, INC.

PHM Guru Analysis

PHM Fundamental Analysis

LIQUIDITY SERVICES INC (LQDT) is a small-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Martin Zweig is 62% 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: Liquidity Services, Inc. is a global commerce company. It operates a business to business (B2B) e-commerce marketplace platform for surplus assets. Its segments include GovDeals, Retail Supply Chain Group (RSCG), Capital Assets Group (CAG) and Machinio. The GovDeals segment provides solutions that enable government entities including city, county, state and federal agencies located in the United States and Canada and related commercial businesses to sell surplus property and real estate assets through its GovDeals and Bid4Assets marketplaces. The RSCG segment consists of marketplaces that enable corporations located in the United States and Canada to sell excess, returned, and overstocked consumer goods. The CAG segment offers solutions to sellers and consists of marketplaces that enable commercial businesses to sell surplus assets. Machinio segment operates a search engine platform for listing used equipment for sale in the construction, machine tool, printing and agriculture sectors.

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.

P/E RATIO:PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH:FAIL
SALES GROWTH RATE:PASS
CURRENT QUARTER EARNINGS:PASS
QUARTERLY EARNINGS ONE YEAR AGO:PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER:PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS:FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS:PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE:FAIL
EARNINGS PERSISTENCE:FAIL
LONG-TERM EPS GROWTH:FAIL
TOTAL DEBT/EQUITY RATIO:PASS
INSIDER TRANSACTIONS:PASS

Detailed Analysis of LIQUIDITY SERVICES INC

LQDT Guru Analysis

LQDT Fundamental Analysis

Martin Zweig Portfolio

About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.

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.