The following are the top rated Consumer Cyclical stocks according to Validea’s Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
OSHKOSH CORP (OSK) is a mid-cap value stock in the Auto & Truck Manufacturers industry. The rating according to our strategy based on Kenneth Fisher 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: Oshkosh Corp is a designer, manufacturer and marketer of a broad range of engineered specialty vehicles and vehicle bodies. The Company operates through four segments: access equipment, defense, fire & emergency and commercial. Access equipment segment designs and manufactures aerial work platforms and telehandlers used in a wide variety of construction, industrial, institutional and general maintenance applications and also manufactures towing and recovery equipment in the United States. Defense segment manufactures heavy, medium, and light tactical wheeled vehicles. Fire & emergency segment designs and manufactures fire apparatus assembled on custom chassis, aircraft rescue and firefighting vehicles to domestic and international airports and broadcast and communication vehicles. Commercial segment designs and manufactures front- and rear-discharge concrete mixers and portable and stationary concrete batch plants, refuse collection vehicles and field service vehicles.
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.
| PRICE/SALES RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | PASS |
| LONG-TERM EPS GROWTH RATE: | PASS |
| FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
COLUMBIA SPORTSWEAR COMPANY (COLM) is a mid-cap value stock in the Apparel/Accessories industry. The rating according to our strategy based on Kenneth Fisher 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: Columbia Sportswear Company is an apparel and footwear company. The Company designs, sources, markets and distributes outdoor lifestyle apparel, footwear, accessories and equipment under the Columbia, Mountain Hardwear, Sorel, prAna and other brands. Its geographic segments are the United States, Latin America and Asia Pacific (LAAP), Europe, Middle East and Africa (EMEA), and Canada. The Company develops and manages its merchandise in categories, including apparel, accessories and equipment, and footwear. It distributes its products through a mix of wholesale distribution channels, its own direct-to-consumer channels (retail stores and e-commerce), independent distributors and licensees. As of December 31, 2016, its products were sold in approximately 90 countries. In 59 of those countries, it sells to independent distributors to whom it has granted distribution rights. Contract manufacturers located outside the United States manufacture all of its 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.
| PRICE/SALES RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | FAIL |
| LONG-TERM EPS GROWTH RATE: | PASS |
| FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
JOHNSON OUTDOORS INC. (JOUT) is a small-cap value stock in the Recreational Products industry. The rating according to our strategy based on Kenneth Fisher 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: Johnson Outdoors Inc. is a manufacturer and marketer of branded seasonal, outdoor recreation products. The Company operates through four segments: Marine Electronics, Outdoor Equipment, Watercraft and Diving. Its Marine Electronics segment’s brands are Minn Kota, Humminbird and Cannon. Its Outdoor Equipment segment’s brands are Eureka!, Jetboil and Silva. Its Watercraft segment designs and markets Necky sea touring kayaks; sit on top Ocean Kayaks, and Old Town canoes and kayaks for family recreation, touring, angling and tripping. The Company manufactures and markets underwater diving products for recreational divers, which it sells and distributes under the SCUBAPRO brand name. It markets a line of underwater diving and snorkeling equipment, including regulators, buoyancy compensators, dive computers and gauges, wetsuits, masks, fins, snorkels and accessories. The Company’s products are used for fishing from a boat, diving, paddling, hiking and camping.
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.
| PRICE/SALES RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | FAIL |
| LONG-TERM EPS GROWTH RATE: | PASS |
| FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
MAGNA INTERNATIONAL INC. (USA) (MGA) is a mid-cap value stock in the Auto & Truck Parts industry. The rating according to our strategy based on Kenneth Fisher 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: Magna International Inc. (Magna) is a mobility technology company. The Company’s segments include Body Exteriors & Structures, Power & Vision, Seating System and Complete Vehicles. Its product capabilities include body, chassis, exterior, seating, powertrain, active driver assistance, electronics, mirrors & lighting, mechatronics and roof systems. Its products include sealing systems, sliding folding and modular roofs, active aerodynamics, lightweight composites, fuel systems, engineered glass, body systems, electronic controllers, interior mirrors, exterior mirrors, tail lamps, small lighting, seat structures, door systems, power closure systems, mechanism & hardware solutions, foam & trim products, complete vehicle manufacturing, engineering services and fuel 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.
| PRICE/SALES RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | PASS |
| LONG-TERM EPS GROWTH RATE: | FAIL |
| FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
MOHAWK INDUSTRIES, INC. (MHK) is a mid-cap value stock in the Textiles – Non Apparel industry. The rating according to our strategy based on Kenneth Fisher 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: Mohawk Industries, Inc. is a flooring manufacturer that creates products for residential and commercial spaces around the world. The Company’ segments include Global Ceramic, Flooring North America (Flooring NA) and Flooring Rest of the World (Flooring ROW). Its manufacturing and distribution processes provide carpet, rugs, ceramic tile, laminate, wood, stone, luxury vinyl tile and vinyl flooring. The Global Ceramic segment designs, manufactures, sources, distributes and markets a line of ceramic tile, porcelain tile and natural stone products used in the residential and commercial markets for both remodeling and new construction. The Flooring NA segment designs, manufactures, sources, distributes and markets carpet, laminate, carpet pad, rugs, hardwood and vinyl. The Flooring ROW segment designs, manufactures, sources, distributes and markets laminate, hardwood flooring, roofing elements, insulation boards, medium-density fiberboard (MDF), chipboards, and vinyl flooring 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.
| PRICE/SALES RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | PASS |
| LONG-TERM EPS GROWTH RATE: | FAIL |
| FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS |
For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here
Since its inception, Validea’s strategy based on Kenneth Fisher has returned 213.96% vs. 155.66% for the S&P 500. For more details on this strategy, click here
About Kenneth Fisher: The son of Philip Fisher, who is considered the “Father of Growth Investing”, Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world’s foremost experts on 19th century logging. Appropriately, Fisher’s firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
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.
