TBelow are the top cyclical consumer stocks ranked according to Validea’s price/yield/growth investor model based on Peter Lynch’s published strategy. This strategy looks for stocks that are reasonably priced in relation to earnings growth who also have strong balance sheets.
Haverty Furniture Companies (HVT) It is a small-cap stock in the furniture and fixture industry. The rating under our Peter Lynch-based strategy is 100% based on the company’s fundamentals and stock valuation. A score of 80% or higher usually indicates that the strategy has some interest in the stock and a score of over 90% usually indicates strong interest.
Company Description: Haverty Furniture Companies, Inc. is a retailer of residential furniture and accessories. The company offers products under various categories including living rooms, bedrooms, dining rooms, home offices, mattresses, decor, rugs and outdoors. Its mattress product lines include Tempur-Pedic, Serta, Sealy, Stearns and Foster. Their clients include women in middle to upper to middle income families. It operates approximately 121 stores in 16 states in the South and Midwest regions, providing its customers with a range of merchandise in the mid- to upper-mid price ranges. Its retail locations are operated under the Havertys name. It also has an online platform through which its customers can make purchases. It also provides financing through third party financing companies as well as an internal revolving credit plan. Its stores are located in areas including Florida, Texas, Georgia, North Carolina, Virginia, South Carolina, Alabama, Tennessee and Maryland.
The following table summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below receive equal or independent weighting, but the table provides a brief overview of the strengths and weaknesses of security in the context of the strategy criteria.
| P/E/Growth Ratio: | pass |
| Sales and P/E Ratio: | pass |
| Inventory until sales: | pass |
| EPS Growth Rate: | pass |
| Total Debt/Equity Ratio: | pass |
| Free cash flow: | neutral |
| net cash position: | Bonus ticket |
Detailed analysis of HAVERTY furniture companies, INC.
Complete parameter analysis of HVT>
HVT Complete Factor Report>
Movado Group, Inc (MOV) It is a small-cap share in the jewelry and silverware industry. The rating under our Peter Lynch-based strategy is 100% based on the company’s fundamentals and stock valuation. A score of 80% or higher usually indicates that the strategy has some interest in the stock and a score of over 90% usually indicates strong interest.
Company Description: The Movado Group, Inc. Designs, sourcing, marketing and distributing watches globally. The company operates through two divisions: watch and accessory brands and company stores. The Watch and Accessories Brands segment includes the design, manufacture, and distribution of watches and, to a lesser extent, jewelry and other accessories for owned and licensed brands, as well as after-sales service and shipping activities. The Company’s warehousing segment includes the locations of the Company’s physical retail outlets in the United States and Canada. Its portfolio of watch brands consists of proprietary brands, such as Movado, Concorde, Ebel, Olivia Burton and MVMT as well as licensed brands, such as COACH, TOMMY HILFIGER, HUGO BOSS, LACOSTE, CALVIN KLEIN and SCUDERIA FERRARI . It also designs, sources, markets and distributes jewelry and other accessories under some of its brands. The company divides its business into two geographic locations, such as US and international operations.
The following table summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below receive equal or independent weighting, but the table provides a brief overview of the strengths and weaknesses of security in the context of the strategy criteria.
| P/E/Growth Ratio: | pass |
| Sales and P/E Ratio: | neutral |
| Inventory until sales: | pass |
| EPS Growth Rate: | pass |
| Total Debt/Equity Ratio: | pass |
| Free cash flow: | neutral |
| net cash position: | Bonus ticket |
Detailed analysis of MOVADO GROUP, INC
Complete parameter analysis for MOV>
MOV Full Worker Report>
LA-Z-BOY INCORPORATED (LZB) It is a small-cap stock in the furniture and fixture industry. The rating under our Peter Lynch-based strategy is 98% based on the company’s fundamentals and stock valuation. A score of 80% or higher usually indicates that the strategy has some interest in the stock and a score of over 90% usually indicates strong interest.
Company Description: La-Z-Boy Incorporated is a reclining chair producer and the manufacturer/distributor of residential furniture in the United States. The company’s sectors include the wholesale sector, the retail sector, the corporate sector and others. The wholesale division consists of three brands: American Drew, Hammary and Kincaid, which manufacture and import upholstered furniture, such as armchairs, revolving furniture, sofas, poufs, armchairs, sectionals, modules, sofas, ottomans, and sofas for sleeping, and imports cassowary (wood) furniture, such as occasional pieces and sets Bedrooms, dining room sets and entertainment centers. Its retail segment consists of approximately 159 company-owned La-Z-Boy Furniture Galleries stores. The retail division primarily sells upholstered furniture, as well as some box bags and other accessories, to the end consumer through these stores. The company and others include Joybird, an e-commerce retailer that manufactures upholstered furniture.
The following table summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below receive equal or independent weighting, but the table provides a brief overview of the strengths and weaknesses of security in the context of the strategy criteria.
| Inventory until sales: | pass |
| Rate of Return on Earnings Adjusted Growth Rate (Peg): | pass |
| Earnings per share: | pass |
| Total Debt/Equity Ratio: | pass |
| Free cash flow: | neutral |
| net cash position: | Bonus ticket |
Detailed Analysis of LA-Z-BOY INCORPORATED
LZB’s Complete Teacher Analysis
LZB Full Worker Report>
ETHAN ALLEN INTERIORS INC. (ETD) It is a small-cap stock in the furniture and fixture industry. The rating under our Peter Lynch-based strategy is 93% based on the company’s fundamentals and stock valuation. A score of 80% or higher usually indicates that the strategy has some interest in the stock and a score of over 90% usually indicates strong interest.
Company Description: Ethan Allen Interiors Inc. It is an interior design company. The company is a manufacturer and retailer in the home furnishings market. It is an international home fashion brand that is vertically integrated from design to delivery. The company operates through two divisions: wholesale and retail. It provides free interior design service to clients and sells a wide range of home furnishings through the retail network of nearly 300 design centers in the United States and abroad as well as online at ethanallen.com. The wholesale segment is primarily involved in the development of the Ethan Allen brand and includes all aspects of the design, manufacture, supply, marketing, sale and distribution of a wide range of home furnishings and accents. It operates approximately 141 retail design centers with 136 in the United States and five in Canada. The company owns and operates nine manufacturing facilities.
The following table summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below receive equal or independent weighting, but the table provides a brief overview of the strengths and weaknesses of security in the context of the strategy criteria.
| P/E/Growth Ratio: | pass |
| Sales and P/E Ratio: | neutral |
| Inventory until sales: | pass |
| EPS Growth Rate: | pass |
| Total Debt/Equity Ratio: | pass |
| Free cash flow: | neutral |
| net cash position: | neutral |
Detailed analysis of ETHAN ALLEN INTERIORS INC.
Complete teacher analysis for ETD>
Full worker report on ETD>
G-III APPAREL GROUP, LTD. (GIII) It is a stock with a small capital value in the apparel/accessories industry. The rating under our Peter Lynch-based strategy is 93% based on the company’s fundamentals and stock valuation. A score of 80% or higher usually indicates that the strategy has some interest in the stock and a score of over 90% usually indicates strong interest.
Company Description: G-III Apparel Group, Ltd. designs, sources and markets a range of apparel, including outerwear, dresses, sportswear, swimwear, women’s suits, and women’s performance apparel, as well as handbags, shoes, small leather goods, cold weather accessories, and luggage. The company’s segments include wholesale and retail operations. The Wholesale Operations segment includes sales of products to retailers of wholly owned, licensed and private brands, as well as sales related to the Vilebrequin business. The retail operations segment consists of direct sales to consumers through company-operated stores and through digital channels. It consists of DKNY and Karl Lagerfeld Paris stores, as well as the digital channels of DKNY, Donna Karan, Karl Lagerfeld Paris, GH Bass, Andrew Marc and Wilsons Leather. Its digital business consists of its web platforms at www.dkny.com, www.donnakaran.com, www.ghbass.com, www.vilebrequin.com and www.andrewmarc.com.
The following table summarizes whether the stock meets each of the tests of this strategy. Not all of the criteria in the table below receive equal or independent weighting, but the table provides a brief overview of the strengths and weaknesses of security in the context of the strategy criteria.
| P/E/Growth Ratio: | pass |
| Sales and P/E Ratio: | pass |
| Inventory until sales: | pass |
| EPS Growth Rate: | pass |
| Total Debt/Equity Ratio: | pass |
| Free cash flow: | neutral |
| net cash position: | neutral |
Detailed analysis of G-III APPAREL GROUP, LTD.
GIII’s Complete Teacher Analysis>
GIII Index Complete Factor Report>
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About Peter LynchPossibly the greatest mutual fund manager ever, Lynch directed Fidelity Investment’s Magellan Fund to a 29.2 percent average annual return from 1977 until his retirement in 1990, nearly doubling the S&P 500’s 15.8 percent annual return during that time. Lynch’s quick-witted, common-sense approach has made him one of the most quoted investors on Wall Street. (“Go into a business any fool can run—for sooner or later, any fool will likely run it,” is one of the many pearls of wisdom he possesses.) To everyone/every woman,” he breaks down his approach into easy-to-understand concepts.
About Validea: Validea is an investment research service that follows the published strategies of investment myths. Validea offers both stock and model portfolio analysis based on educators 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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