Dreman Strategy Upgrades: JEXYY, IMBBY, and MTH Shine

Market Update: Upgrades in key sectors signal buying opportunities. The Contrarian Investor model highlights JEXYY, IMBBY, and MTH as equities showing improving fundamentals, potentially impacting their stock valuations positively.

Date: 04-01-2025

AI Rating: 7

Earnings Per Share (EPS): The report indicates that Jiangsu Expressway Co Ltd (ADR) (JEXYY), Imperial Brands PLC (ADR) (IMBBY), and Meritage Homes Corp (MTH) have passed the EPS growth rate criteria, suggesting a positive trend in their earnings. The continued growth in EPS can lead to enhanced investor confidence, thereby boosting stock prices.

Return on Equity (ROE): JEXYY and MTH both show failure in the ROE category, which might raise concerns about how effectively these companies are using equity investments to generate profits. This could deter some investors from purchasing or holding these stocks due to perceived inefficiencies.

Pre-Tax Profit Margins: All three companies passed the pre-tax profit margins test, indicating good control over costs relative to their revenues. Higher profit margins can contribute to better overall net income and attractiveness for investors.

Summary of Ratings: The upgrade in ratings from the Contrarian Investor model suggests increasing investor interest; JEXYY's rating rose from 64% to 76%, IMBBY from 83% to 90%, and MTH from 50% to 69%. These improvements can positively affect respective stock prices, as higher ratings often indicate better fundamentals and value relative to price.

Overall Assessment: While JEXYY and MTH have areas of concern (specifically ROE), their positive attributes in EPS and profit margins may still attract investors looking for value. IMBBY, with its strong rating growth and overall better performance metrics, is likely to experience heightened interest among investors.

Stocks: JEXYY IMBBY MTH