The following are today’s upgrades for 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.
BRADY CORP ( BRC ) is a small-cap growth stock in the Security Systems & Services industry. The rating according to our strategy based on Peter Lynch changed from 0% to 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: Brady Corporation is a manufacturer and supplier of identification solutions and workplace safety products that identify and protect premises, products and people. The Company has two segments: Identification Solutions (IDS) and Workplace Safety ( WPS ). The IDS segment includes identification and healthcare products, and the WPS segment includes workplace safety and compliance products. The IDS segment offers products that are manufactured under various brands, including the Brady brand, and are primarily sold through distribution to a range of maintenance, repair and operations ( MRO ) and original equipment manufacturing (OEM) customers, and through other channels. The WPS segment offers a range of product categories, such as safety and compliance signs, tags, and labels; informational and architectural signage; industrial warehouse and office equipment, and labor law compliance posters. Its brands include Electromark, Identicard, PromoVision, Scafftag, Seton and Emedco.
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.
|SALES AND P/E RATIO:||PASS|
|EPS GROWTH RATE:||FAIL|
|TOTAL DEBT/EQUITY RATIO:||PASS|
|FREE CASH FLOW:||NEUTRAL|
|NET CASH POSITION:||NEUTRAL|
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
Since its inception, Validea’s strategy based on Peter Lynch has returned 394.11% vs. 149.73% for the S&P 500. For more details on this strategy, click here
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 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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.