Validea’s Top Five Consumer Cyclical Stocks Based On Warren Buffett – 8/30/2021 Edit My Quotes Your symbols have been updated Edit Watchlist
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he following are the top rated Consumer Cyclical stocks according to Validea’s Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
O’REILLY AUTOMOTIVE INC (ORLY) is a large-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Warren Buffett is 100% 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: O’Reilly Automotive, Inc. is a specialty retailer of automotive aftermarket parts, tools, supplies, equipment and accessories in the United States. The Company sells its products to both do-it-yourself (DIY) and professional service provider customers. Its product line includes new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature control, chassis parts, driveline parts and engine parts; maintenance items, such as oil, antifreeze, fluids, filters, wiper blades, lighting, engine additives and appearance products, and accessories, such as floor mats, seat covers and truck accessories. The Company’s stores offer various services and programs to its customers, such as battery diagnostic testing; battery, wiper and bulb replacement; custom hydraulic hoses; drum and rotor resurfacing; electrical and module testing; loaner tool program, and used oil, oil filter and battery recycling.
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 PREDICTABILITY:
PASS
DEBT SERVICE:
PASS
RETURN ON EQUITY:
PASS
RETURN ON TOTAL CAPITAL:
PASS
FREE CASH FLOW:
PASS
USE OF RETAINED EARNINGS:
PASS
SHARE REPURCHASE:
PASS
INITIAL RATE OF RETURN:
PASS
EXPECTED RETURN:
PASS
Detailed Analysis of O’REILLY AUTOMOTIVE INC
Full Guru Analysis for ORLY>
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POOL CORPORATION (POOL) is a large-cap growth stock in the Recreational Products industry. The rating according to our strategy based on Warren Buffett is 100% 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: Pool Corporation is a distributor of swimming pool supplies, equipment and related leisure products. The Company is a distributor of irrigation and landscape products in the United States. The Company operates sales centers in North America, Europe and Australia through its distribution networks, which includes SCP Distributors (SCP), Superior Pool Products (Superior), Horizon Distributors (Horizon), and National Pool Tile (NPT). The Company’s NPT network primarily serves the swimming pool market but does provide some overlap with the irrigation and landscape industries as it offers its brand of pool tile, composite pool finish products and hardscapes. It also offers virtual tools for homeowners to select and design their pool and outdoor environments, working with their chosen contractors to install these products.
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 PREDICTABILITY:
PASS
DEBT SERVICE:
PASS
RETURN ON EQUITY:
PASS
RETURN ON TOTAL CAPITAL:
PASS
FREE CASH FLOW:
PASS
USE OF RETAINED EARNINGS:
PASS
SHARE REPURCHASE:
PASS
INITIAL RATE OF RETURN:
PASS
EXPECTED RETURN:
PASS
Detailed Analysis of POOL CORPORATION
Full Guru Analysis for POOL>
Full Factor Report for POOL>
NIKE INC (NKE) is a large-cap growth stock in the Footwear industry. The rating according to our strategy based on Warren Buffett is 85% 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: NIKE, Inc. is engaged in the designing, marketing and distributing of athletic footwear, apparel, equipment and accessories for sports and fitness activities. The Company’s operating segments include North America, Europe, Middle East & Africa (EMEA), Greater China, and Asia Pacific & Latin America (APLA). It focuses its NIKE Brand product offerings in categories such as Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Training and Sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses such as American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, wrestling and other outdoor activities. It sells a line of performance equipment and accessories under the NIKE Brand name, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment and other equipment designed for sports activities.
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 PREDICTABILITY:
PASS
DEBT SERVICE:
PASS
RETURN ON EQUITY:
PASS
RETURN ON TOTAL CAPITAL:
PASS
FREE CASH FLOW:
PASS
USE OF RETAINED EARNINGS:
PASS
SHARE REPURCHASE:
NEUTRAL
INITIAL RATE OF RETURN:
PASS
EXPECTED RETURN:
FAIL
Detailed Analysis of NIKE INC
Full Guru Analysis for NKE>
Full Factor Report for NKE>
FOX FACTORY HOLDING CORP (FOXF) is a mid-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Warren Buffett is 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: Fox Factory Holding Corp. is engaged in the manufacturing, sale and service of ride dynamics products. The Company’s products fall into two categories: bikes, and powered vehicles, including side-by-sides, on-road vehicles with off-road capabilities, off-road vehicles and trucks, all-terrain vehicles (ATVs), snowmobiles, specialty vehicles and applications, and motorcycles. The Company’s brands include FOX, FOX RACING SHOX and RACE FACE. The Company’s products include 34 Factory Series FLOAT FIT4, which provides external adjustability with its fourth-generation FOX Isolated Technology and closed-cartridge damper, and includes a self-adjusting negative chamber air spring; X2 technology, utilized in its Factory Series FLOAT and DH rear shocks; PODIUM Internal Bypass, and X2 technology utilized in its 2.5 PODIUM shocks for side-by-sides that feature high and low speed rebound adjustment, high and low speed compression adjustment, and a dual-rate spring for the rear shocks.
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 PREDICTABILITY:
PASS
DEBT SERVICE:
PASS
RETURN ON EQUITY:
PASS
RETURN ON TOTAL CAPITAL:
FAIL
FREE CASH FLOW:
PASS
USE OF RETAINED EARNINGS:
PASS
SHARE REPURCHASE:
NEUTRAL
INITIAL RATE OF RETURN:
PASS
EXPECTED RETURN:
PASS
Detailed Analysis of FOX FACTORY HOLDING CORP
Full Guru Analysis for FOXF>
Full Factor Report for FOXF>
APTIV PLC (APTV) is a large-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Warren Buffett is 73% 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: Aptiv PLC, formerly Delphi Automotive PLC, is a global technology company serving the automotive sector. The Company designs and manufactures vehicle components, and provides electrical and electronic and active safety technology solutions to the global automotive and commercial vehicle markets. The Company’s segments include Electrical/Electronic Architecture, and Electronics & Safety. The Electrical/Electronic Architecture segment provides complete design of the vehicle’s electrical architecture, including connectors, wiring assemblies and harnesses, electrical centers and hybrid high voltage and safety distribution systems. The Electronics and Safety segment offers a range of electronic and safety equipment and software in the areas of controls, security, infotainment, communications and safety systems.
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 PREDICTABILITY:
PASS
DEBT SERVICE:
PASS
RETURN ON EQUITY:
PASS
RETURN ON TOTAL CAPITAL:
PASS
FREE CASH FLOW:
PASS
USE OF RETAINED EARNINGS:
FAIL
SHARE REPURCHASE:
NEUTRAL
INITIAL RATE OF RETURN:
PASS
EXPECTED RETURN:
PASS
Detailed Analysis of APTIV PLC
Full Guru Analysis for APTV>
Full Factor Report for APTV>
More details on Validea’s Warren Buffett strategy
Warren Buffett Stock Ideas
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world’s richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures — a cherry Coke, a good burger, and a good book are all near the top of the list — have been well-documented.
About Validea: Validea is an investment research service 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
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