Validea Peter Lynch Strategy Daily Upgrade Report – 11/24/2022

The following are today’s upgrades to Validea’s P/E/Growth Investor model, based on Peter Lynch’s published strategy. This strategy looks for stocks that are trading at a reasonable price relative to earnings growth that also have strong balance sheets.

Western Midstream Partners LP (WES) is a value stock with a large market capitalization in the oil and gas industry. The rating according to our Peter Lynch-based strategy changed from 72% to 74% based on the company’s underlying fundamentals and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock, and a score above 90% usually indicates strong interest.

Company description: Western Midstream Partners LP owns, develops and operates midstream assets. The Company is engaged in the collection, compression, treatment, processing and transportation of natural gas; collecting, stabilizing and transporting condensate, natural gas liquids (NGLs) and crude oil; and collecting and disposing of produced water. The Company’s midstream assets are located in the Rocky Mountains of northern Pennsylvania, Texas and New Mexico. In addition, in its capacity as a processor of natural gas, the Company also purchases and sells natural gas, NGLs and condensate on its own behalf and as an agent for its customers under certain of its contracts. The DBM oil system includes three central production plants and two regional oil treatment plants (ROTFs). The Company operates approximately two gas processing plants and has over 1.3 billion cubic feet (BCF). It also operates more than 35 water disposal wells and water capacity of approximately 1.2 million barrels.

The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.

INVENTORY FOR SALE: HAPPEN
RETURN ADJUSTED P/E TO GROWTH (PEG) RATIO: HAPPEN
EARNINGS PER SHARE: HAPPEN
TOTAL DEBT/EQUITY RATIO: FAIL
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL

Detailed analysis of WESTERN MIDSTREAM PARTNERS LP

Full Guru Analysis for WES

Full factor report for WES

WASHINGTON FEDERAL INC. (WAFD) is a mid-cap value stock active in the Money Center Banks industry. The rating according to our Peter Lynch-based strategy changed from 72% to 80% based on the company’s underlying fundamentals and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock, and a score above 90% usually indicates strong interest.

Company description: Washington Federal, Inc. is a bank holding company. The Company conducts its business through a federally insured subsidiary of the National Bank, Washington Federal, National Association (the Bank). The Bank’s business consists primarily of accepting deposits from the public and investing these funds in loans of various types, including senior single-family home mortgages, construction loans, home acquisition and development loans, multi-family and commercial real estate and other income-generating real estate loans, home equity loans and commercial loans . Washington Federal Bank has approximately 224 branches in Washington, Oregon, Idaho, Arizona, Utah, Nevada, New Mexico and Texas. Through the Bank’s subsidiaries, the Company is also engaged in insurance brokerage. The Bank offers a variety of consumer checking account products, both interest-bearing and non-interest-bearing, and business checking accounts.

The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.

RETURN ADJUSTED P/E TO GROWTH (PEG) RATIO: HAPPEN
EARNINGS PER SHARE: HAPPEN
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSET RATIO: HAPPEN
RETURN ON ASSETS: HAPPEN
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: BONUS PASS

Detailed analysis of WASHINGTON FEDERAL INC.

Complete guru analysis for WAFD

Full factor report for WAFD

UNIVEST FINANCIAL CORP (UVSP) is a small cap value stock active in the Money Center Banks industry. The rating according to our Peter Lynch-based strategy changed from 72% to 74% based on the company’s underlying fundamentals and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock, and a score above 90% usually indicates strong interest.

Company description: Univest Financial Corporation is the bank holding company of Univest Bank and Trust Co. (the Bank). The Company operates through three segments: Banking, Wealth Management and Insurance. The Banking segment provides financial services for individuals, companies, municipalities and non-profit organizations. These services include a range of banking services such as deposit taking, loan origination and servicing, mortgage banking, other general banking services and equipment lease financing. The Wealth Management segment provides investment advisory, financial planning, trusteeship and brokerage services serving a client base of private families and individuals, community pension plans, retirement plans, trusts and guardianships. The Insurance segment includes an insurance brokerage agency that offers commercial property and casualty insurance, employee benefits solutions, personal insurance and personal consulting.

The table below summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below are weighted equally or are independent of one another, but the table provides a brief overview of the security’s strengths and weaknesses in the context of the strategy’s criteria.

RETURN ADJUSTED P/E TO GROWTH (PEG) RATIO: HAPPEN
EARNINGS PER SHARE: HAPPEN
TOTAL DEBT/EQUITY RATIO: NEUTRAL
EQUITY/ASSET RATIO: HAPPEN
RETURN ON ASSETS: HAPPEN
FREE CASH FLOW: NEUTRAL
NET CASH POSITION: NEUTRAL

Detailed Analysis by UNIVEST FINANCIAL CORP

Complete guru analysis for UVSP

Full factor report for UVSP

More details on Validea’s Peter Lynch strategy

Stock ideas from Peter Lynch

About Peter Lynch: Lynch, perhaps the greatest mutual fund manager of all time, led Fidelity Investment’s Magellan Fund from 1977 until its retirement in 1990 to an average annual return of 29.2 percent, nearly doubling the S&P 500’s 15.8 percent annual return this time. Lynch’s common sense and quick wit made him one of Wall Street’s most-cited investors. (“Go for a business any idiot can run—because sooner or later, probably, any idiot will run it,” is one of his many words of wisdom.) Lynch’s bestseller, One Up on Wall Street, is something of a “stocks for everyone.” /Everywoman” and breaks his approach down into easily understandable 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 time, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. You can find more information about Validea here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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