The following are today’s upgrades for Validea’s Growth/Value Investor model based on the published strategy of James P. O’Shaughnessy. This two strategy approach offers a large-cap value model and a growth approach that looks for persistent earnings growth and strong relative strength.
SUMMIT MATERIALS INC (SUM) is a mid-cap value stock in the Construction – Raw Materials industry. The rating according to our strategy based on James P. O’Shaughnessy changed from 75% to 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.
Company Description: Summit Materials, Inc. is a vertically integrated materials-based company, which supplies aggregates, cement, ready-mix concrete and asphalt in the United States and British Columbia, Canada. The Company offers customers a single-source provider of construction materials and related downstream products in the public infrastructure, residential and non-residential end markets. The Company has three segments. West segment is comprised of its West and South regions, and includes operations in Texas, Utah, Colorado, Idaho, Wyoming, Oklahoma, Nevada, Arkansas and British Columbia, Canada. East segment is comprised of its East and Central regions and serves markets extending across the Midwestern and Eastern United States, most notably in Kansas, Missouri, Virginia, North Carolina, South Carolina, Georgia and Nebraska. Cement segment consists of its Hannibal, Missouri and Davenport, Iowa cement plants and nine distribution terminals along the Mississippi River from Minnesota to Louisiana.
The following table summarizes whether the stock meets each of this strategy’s tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy’s criteria.
| MARKET CAP: | PASS |
| EARNINGS PER SHARE PERSISTENCE: | PASS |
| PRICE/SALES RATIO: | PASS |
| RELATIVE STRENGTH: | PASS |
Detailed Analysis of SUMMIT MATERIALS INC
SUM Guru Analysis
SUM Fundamental Analysis
James P. O’Shaughnessy Portfolio
About James P. O’Shaughnessy: Research guru and money manager James O’Shaughnessy forced many professional and amateur investors alike to rethink their investment beliefs when he published his 1996 bestseller, What Works on Wall Street. O’Shaughnessy back-tested 44 years ofstock market datafrom the comprehensive Standard & Poor’s Compustat database to find out which quantitative strategies have worked over the years and which haven’t. To the surprise of many, he concluded that price/earnings ratios aren’t the best indicator of a stock’s value, and that small-company stocks, contrary to popular wisdom, don’t as a group have an edge on large-company stocks. Today O’Shaughnessy is the Chief Investment Officer of O’Shaughnessy Asset Management.
About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus 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
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
