Validea Joel Greenblatt Strategy Daily Update Report – 05/21/2021
Tthe following are today’s updates for Validea Profit Yield Investor model based on the published strategy of Joel greenblatt. This value model looks for companies with high return on capital and high returns.
L BRANDS INC (LB) is a large cap value stock in the retail (clothing) sector. The rating according to our strategy based on Joel Greenblatt has increased from 30% to 90% depending on the underlying fundamentals of the company and the valuation of the stock. A score of 80% or more usually indicates that the strategy has some interest in the stock and a score above 90% generally indicates a strong interest.
Business Description: L Brands, Inc. operates a specialty retail business. The company focuses on the categories of intimate and other women’s clothing, personal care, beauty and home fragrance. Its segments include Victoria’s Secret, Bath & Body Works, Victoria’s Secret and Bath & Body Works International. It sells its wares through company-owned specialty retail stores in the United States, Canada, United Kingdom and Greater China, which are based in shopping malls; through websites and international franchise, licensing and wholesale partners. It operates in retail brands, which include Victoria’s Secret, PINK, Bath & Body Works and La Senza. La Senza is a specialist retailer of intimate clothing for women. She sells her La Senza products in over 120 La Senza stores across Canada. Henri Bendel sells handbags, jewelry, and other accessories in New York City and 28 other stores. Mast Global is a commodity supply and production function serving the Company and its international partners.
The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table gives a brief overview of the strengths and weaknesses of the title in the context of the strategy criteria.
|RETURN ON BODILY CAPITAL:||NEUTRAL|
Detailed analysis of L BRANDS INC
About Joel Greenblatt: In his 2005 bestseller, The Little Book That Beats The Market, hedge fund manager Joel Greenblatt presented an incredibly easy way to beat the market using two – and only two – fundamental variables. The “magic bullet,” as he called it, produced tested returns of 30.8% per year from 1988 to 2004, more than double the 12.4% return of the S&P 500 during that time. Greenblatt also produced exceptional returns as a managing partner of Gotham Capital, a New York-based hedge fund he founded. The company has averaged a remarkable 40% annualized return over more than two decades.
About Validea: Validea is an investment research service that tracks published strategies from investment legends. Validea offers both stock market 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 on 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.