Unlocking Hidden Value? These 6 Financially Strong Stocks Score a Perfect 9—But Only 2 Make the Cut
Mid-Cap Stocks With Perfect Piotroski Scores—Discover Why Only Two Deserve a Closer Look and What It Means for Your Portfolio
Piotroski F-Score rates companies based on their financial strength. A Piotroski F-score of 8 or 9 is considered very strong. These companies are unlikely to fall into value trap category. A high score paired with other metrics that denote undervaluation is a great screen to find solid and profitable value stocks.
Empirical studies show that the high Piotroski F-score filter adds significant alpha to value stocks, compared to a basket of value stocks without this filter.
Below are the stocks found when this screen was run on Oct 14, 2024. We screened for mid-cap stocks fitting this criteria. The Piotroski F-score for all the stocks in this list is 9, which is the highest possible.
We are confident in the financial strength of these companies since they all have Piotroski F-score of 9, which is the highest possible value. These are unlikely to be value traps. But are they good values? We will take a quick look at each one of these. If I like any of them I will note that and will conduct deep dive into those names for the Paid subscribers.
Travel+Leisure: TNL 0.00%↑ Travel+Leisure is a membership and leisure travel company. I know the Travel+Leisure magazine, but it turns out that they own resorts and sell ownership interests as well. The valuation multiples look most attractive of all the stocks here and it has a 4.4% dividend yield that it has grown 11% last year and about 19% average in the last 3 years. I will take it for further review.
Golden Ocean Group: GOGL 0.00%↑ Sometime ago I wrote a macro piece on the tanker shipping companies. Golden Ocean Group is actually a dry bulker, so slightly different industry but some of the same macro economic conditions are present. This stock is up 60% in the last year. The stock no longer looks cheap to me but if you are after yield, it offers about 10% of it.
Millicom Intl: TIGO 0.00%↑ It is a cellular and fixed line phone service provider in Latin America. The company itself is based out of Luxembourg. The stock has done very well in the last year, up about 77%. It appears cheap as well and appears to be going through some corporate spin-off or buyout. This warrants a deeper review.
Trinity Industries: TRN 0.00%↑ I used to own another stock in the freight and tanker railcar industry. I will pass on the current valuation.
Enerpac Tool Group: EPAC 0.00%↑ It makes heavy industrial machinery. The stock is expensive and not interesting today. Nice returns if you bought it a year or 5 ago!
Frontdoor: FTDR 0.00%↑ The company provides service plans for appliances and other home systems. The stock appears to be fairly valued today.
Please review this list and do your own due diligence. I have 2 stocks here, TNL and TIGO that I will review if they make sense to acquire and post my results for the paid subscribers. One thing worth noting - most of these stocks have done well and therefore are no longer good values. This makes sense since these are financially solid companies and this is not hidden from the market.