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Quality Value Stocks Set to Outperform

Mar 12, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions

 

  • Today we highlight some of the best US Large-Cap Quality Value stocks according to Quantamize stock models to identify individual ideas that could outperform value benchmarks. As US value stocks are lagging US growth stocks so far in 2019, the following quality value stock ideas could be poised to outperform broad benchmarks for the remainder of 2019. The following quality value ideas may also benefit from a broad downturn in US stock valuations that some analysts foresee, citing the declining quality of US stock earnings and slowing global growth.
     
  • So far in 2019, the Russell 1000 Growth Index has generated a total return of 13.11% compared to the Russell 1000 Value Index’s total return of 10.78%, as of yesterday’s close.   
     
  • In the table below, we highlight 10 stocks in our US Large-Cap model that are rated as “Top Buy” in their Quality Value factor and “Top Buy” in their general model ranking, sorted by most attractive exposure to the Quality Value factor.

Quantamize US Large-Cap Quality Value Top Buys

Company Name Ticker Sector Industry US Large-Cap Model General Ranking US Large-Cap Quality Value Model Ranking
PREMIER INC PINC Health Care Health Care Providers & Services Top Buy Top Buy
TIVITY HEALTH INC TVTY Health Care Health Care Providers & Services Top Buy Top Buy
STARBUCKS CORP SBUX Consumer Discretionary Hotels, Restaurants & Leisure Top Buy Top Buy
FLEETCOR TECHNOLOGIES INC FLT Information Technology IT Services Top Buy Top Buy
VERISIGN INC VRSN Information Technology IT Services Top Buy Top Buy
CELGENE CORP CELG Health Care Biotechnology Top Buy Top Buy
SERVICE CORP INTERNATIONAL SCI Consumer Discretionary Diversified Consumer Services Top Buy Top Buy
S&P GLOBAL INC SPGI Financials Capital Markets Top Buy Top Buy
TELEDYNE TECHNOLOGIES INC TDY Industrials Aerospace & Defense Top Buy Top Buy
ZIONS BANCORPORATION NA ZION Financials Banks Top Buy Top Buy

Source: Capital IQ
 

  • Premier Inc. (PINC) is a healthcare improvement company that operates its Supply Chain Services and Performance Services business segments in the US through its various subsidiaries.
     
  • Premier Inc. trades at a multiple of 14.10x its 12M forward earnings while the stock does not offer any sort of dividend.  
     
  • Premier is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
     
  • Starbucks Corp. (SBUX) is a provider of coffee and tea beverages, roasted whole bean and ground coffees, single-serve drinks, iced tea, food, and other snacks through its retail locations across the globe.
     
  • Starbucks generated a robust return on equity of 136.2% in FY2018 while the stock trades at a dividend yield of 2.1% as of Monday’s close.  
     
  • Starbucks is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Consumer Discretionary Global Top Stock Ideas.
     
  • Fleetcor Technologies Inc. (FLT) is a provider of commercial payment solutions that serves business and government entities across the globe.
     
  • Fleetcor looks attractive in terms of profitability, having increased its gross margin in every year since FY2015 from 74.2% to 80.0%. Fleetcor does not currently offer any sort of dividend to investors.  
     
  • Fleetcor is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Attractive” in our US Information Technology Global Top Stock Ideas.
     
  • S&P Global Inc. (SPGI) is a provider of independent ratings, benchmarks, analytics, and data to global capital and commodity markets.
     
  • S&P Global Inc. generated a strong return on equity of 95.9% in FY2018 while the stock offers a dividend yield of 1.2% as of Monday’s close.  
     
  • S&P Global Inc. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas.
     
  • Teledyne Technologies Inc. (TDY) provides and manufactures instrumentation, digital imaging, aerospace and defense electronics, and engineered systems to customers in the US, UK, Denmark, Canada, France, and the Netherlands.
     
  • Teledyne Technologies trades at a multiple of 25.49x its trailing 12M earnings and a 24.54x its forward 12M earnings while the stock does not offer any sort of dividend.  
     
  • Teledyne Technologies is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Neutral” in our US Industrials Global Top Stock Ideas.

 

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS