Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor provides marketing and data services to Validea.ca and receives compensation. Try it.
Acushnet Holdings Corp. (GOLF-N) is a leading maker of golf products worldwide. The company's brands include Titleist, FootJoy and Pinnacle, among others. The stock is considered a small-cap stock with a market capitalization of approximately $1.33-billion.
The stock, which trades at $17.98, is below its 52-week high of $22.31 and yields 2.7 per cent.
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From a fundamental standpoint, the stock gets 100 per cent based on the Cornerstone Growth model, which was developed by Jim O'Shaughnessy. The model looks for small-cap companies that are exhibiting earnings growth and trade a reasonable valuations using the price-to-sales ratio. Companies that meet these tests are then sorted by price momentum and the top 50 get the highest rating. GOLF is one of those companies.
The stock also gets a 70 per cent+ from Validea's Peter Lynch-inspired model. This strategy categorizes the firm as a "fast grower" due to its earnings growth rate. The growth rate is then combined with the stock's valuation through the PEG ratio to determine favourability on the shares.
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