Acuity Brands and Banco Macro Ratings Improved Under Buffett's Model

Analyzing upgrades for Acuity Brands and Banco Macro under Warren Buffett's model. Both stocks show signs of improvement, with Acuity Brands scoring 79% based on fundamentals. Investors should monitor these changes for potential stock price impacts.

Date: 28-02-2025

AI Rating: 7

In today's report, Acuity Brands Inc (AYI) has shown an increase in its rating from 72% to 79% based on Warren Buffett's investment strategy. This reflects a solid performance in terms of **Earnings Predictability**, **Debt Service**, **Return on Equity**, **Return on Total Capital**, and **Free Cash Flow**, all of which have passed the criteria set by the strategy. However, it did fail to meet the **Use of Retained Earnings** test. The overall improvement in the stock's rating suggests a positive outlook, possibly leading to increased investor interest and upward pressure on stock prices. Banco Macro SA (ADR) (BMA), on the other hand, saw its rating rise from 51% to 79%. While it passed tests for **Earnings Predictability**, **Return on Assets**, **Use of Retained Earnings**, **Share Repurchase**, **Initial Rate of Return**, and **Expected Return**, it failed on both **Return on Equity** and **Free Cash Flow**. The rise in its rating also signals a better outlook compared to its prior status, although the red flags related to ROE and FCF may cause caution among investors, potentially limiting aggressive price appreciation. Overall, the upgrades in both stocks indicate that investors see these companies as having the potential for improved profitability and valuation, which should positively impact their stock prices in the short term.

Stocks: AYI BMA