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09 July
Validea's Top Consumer Discretionary Stocks Based On Joel Greenblatt - 7/9/2024

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

EXPEDIA GROUP INC (EXPE) is a large-cap growth stock in the Personal Services industry. The rating according to our strategy based on Joel Greenblatt is 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: Expedia Group, Inc. is an online travel company. The Company's segments include B2C, B2B, and trivago. The B2C segment provides a full range of travel and advertising services to its worldwide customers through a variety of consumer brands including: Expedia.com, Hotels.com, Vrbo, Orbitz, Travelocity, Wotif Group, ebookers, CheapTickets, Hotwire.com and CarRentals.com. The B2B segment fuels a wide range of travel and non-travel companies, including airlines, offline travel agents, online retailers, corporate travel management and financial institutions, who leverage travel technology and tap into its diverse supply to augment their offerings and market Expedia Group rates and availabilities to their travelers. Its trivago segment generates advertising revenue primarily from sending referrals to online travel companies and travel service providers from its hotel metasearch Websites. The trivago is its majority-owned hotel metasearch company, based in Dusseldorf, Germany.

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 TANGIBLE CAPITAL:NEUTRAL
FINAL RANKING:PASS

Detailed Analysis of EXPEDIA GROUP INC

EXPE Guru Analysis

EXPE Fundamental Analysis

CROCS INC (CROX) is a mid-cap value stock in the Footwear industry. The rating according to our strategy based on Joel Greenblatt is 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: Crocs, Inc. is engaged in the design, development, worldwide marketing, distribution, and sale of casual lifestyle footwear and accessories for women, men, and children. The Company's segments include Crocs Brand and the HEYDUDE Brand. The Company's Crocs Brand collection contains Croslite material, a molded footwear technology, delivering extraordinary comfort with each step. Its Croslite materials are formulated to create soft, comfortable, lightweight, non-marking, and odor-resistant footwear. The HEYDUDE Brand offers shoes with a versatile silhouette. It sells its products in more than 80 countries, through two distribution channels: wholesale and direct-to-consumer. Its wholesale channel includes domestic and international multi-brand retailers, mono-branded partner stores, e-tailers, and distributors; its direct-to-consumer channel includes Company-operated retail stores, Company-operated e-commerce sites, and third-party marketplaces.

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 TANGIBLE CAPITAL:NEUTRAL
FINAL RANKING:PASS

Detailed Analysis of CROCS INC

CROX Guru Analysis

CROX Fundamental Analysis

ULTA BEAUTY INC (ULTA) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Joel Greenblatt is 70% 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: Ulta Beauty, Inc. is a beauty retailer. The Company's product categories include cosmetics, skincare, haircare products and styling tools, fragrance and bath, services, and accessories and other. The Company has one segment, which includes retail stores, salon services, and e-commerce. It offers a range of beauty services in its stores, focusing on hair, makeup, brow and skin services. Its skin services include a skin treatment room or dedicated skin treatment area on the sales floor. Its Ulta Beauty store prototype includes an open salon area, with most of its stores offering brow services on the salon floor. It offers a new way to shop for beauty - bringing together All Things Beauty, All in One Place. In addition to ship to home order fulfillment, it offers guests Buy Online, Pick-up in Store, Curbside Pickup, and Store 2 Door, which provides the ability for customers to order in-store and have products delivered to their homes. It operates over 1,350 retail stores across 50 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.

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

Detailed Analysis of ULTA BEAUTY INC

ULTA Guru Analysis

ULTA Fundamental Analysis

BOYD GAMING CORPORATION (BYD) is a mid-cap value stock in the Casinos & Gaming industry. The rating according to our strategy based on Joel Greenblatt is 70% 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: Boyd Gaming Corporation is a gaming company, which operates 28 brick-and-mortar gaming entertainment properties. The Company's segments include Las Vegas Locals, Downtown Las Vegas, Midwest & South, and Online. The Las Vegas Locals segment consists of eight casinos, which includes Gold Coast Hotel and Casino; The Orleans Hotel and Casino; Sam's Town Hotel and Gambling Hall; Suncoast Hotel and Casino; Eastside Cannery Casino and Hotel; Aliante Casino + Hotel + Spa; Cannery Casino Hotel, and Jokers Wild. The Downtown Las Vegas segment consists of three properties, which includes California Hotel and Casino, Fremont Hotel & Casino and Main Street Station Hotel and Casino. Its Midwest & South properties consist of four land-based casinos, six dockside riverboat casinos, three racinos and four barge-based casinos that operate in nine states, predominantly in the Midwest and southern United States. The Online segment includes Boyd Interactive and Online Sports Betting.

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 TANGIBLE CAPITAL:NEUTRAL
FINAL RANKING:FAIL

Detailed Analysis of BOYD GAMING CORPORATION

BYD Guru Analysis

BYD Fundamental Analysis

WILLIAMS-SONOMA, INC. (WSM) is a large-cap growth stock in the Retail (Specialty) industry. The rating according to our strategy based on Joel Greenblatt is 60% 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: Williams-Sonoma, Inc. is an omni-channel specialty retailer for home products. Its brands include Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, and Mark and Graham are marketed through e-commerce Websites, direct-mail catalogs and retail stores. These brands are also part of the Company's loyalty and credit card program that offers members benefits across the Williams-Sonoma family of brands. Williams Sonoma products include everything for cooking, dining and entertaining, including cookware, tools, electrics, cutlery, tabletop and bar, outdoor, furniture and a library of cookbooks. The brand also includes Williams Sonoma Home that offers home furnishings and decorative accessories. Pottery Barn is an omnichannel home furnishings retailer. It operates 518 stores, which include 480 stores in 40 states, Washington, D.C. and Puerto Rico, 19 stores in Canada, 17 stores in Australia and two stores in the United Kingdom.

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 TANGIBLE CAPITAL:NEUTRAL
FINAL RANKING:FAIL

Detailed Analysis of WILLIAMS-SONOMA, INC.

WSM Guru Analysis

WSM Fundamental Analysis

Joel Greenblatt Portfolio

Top Joel Greenblatt Stocks

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 produced 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 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.