Top Consumer Discretionary Stocks Rated by Value Investor Model

According to a recent report, several top-rated Consumer Discretionary stocks have been highlighted for their strong fundamentals based on Benjamin Graham's value investing model. Key players like Lennar, Nike, Deckers Outdoor, and Sally Beauty were evaluated on critical financial metrics.

Date: 14-10-2024

AI Rating: 6

The report evaluates several stocks in the Consumer Discretionary sector using Benjamin Graham's value investing strategy, which is focused on fundamental financial metrics. The presented stocks include Lennar Corp (LEN), Nike Inc (NKE), Deckers Outdoor Corp (DECK), and Sally Beauty Holdings Inc (SBH), all rated at 71% based on their fundamental outlook.

Stock Analysis:

Lennar Corporation (LEN): This homebuilder passes critical metrics such as sector, sales, P/E ratio, and price/book ratio while failing on current ratio and long-term debt relative to net current assets. Importantly, it passes the long-term EPS growth test, indicating a potentially solid growth outlook.
Nike Inc (NKE): The sports apparel and footwear giant shows strengths in sector, sales, current ratio, long-term debt, and long-term EPS growth. However, it fails on P/E and price/book ratios, suggesting potential concerns regarding its high valuations.
Deckers Outdoor Corp (DECK): Similar to Nike, Deckers is rated positively in sales, current ratio, long-term debt management, and EPS growth, but it faces challenges with P/E and price/book ratios, which may imply overvaluation in the market.
Sally Beauty Holdings Inc (SBH): This company has a commendable rating in sector, sales, current ratio, and P/E ratio but struggles with long-term debt relative to net assets and long-term EPS growth, which could hinder its growth trajectory.

Key Metrics Identified:

Long-Term EPS Growth: Present for Lennar, Nike, Deckers, which indicates a positive outlook for long-term earnings.

Overall, while the ratings for these companies might indicate investor interest, the presence of failing metrics, particularly in leverage ratios and EPS growth for certain companies, raises caution for investors.

Stocks: LEN NKE DECK SBH