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.
Lear Corp. makes automotive seating and electrical products. The Southfield, Michigan-based firm has 240 locations in 35 countries around the globe and employs approximately 135,000 employees. It has a market cap of $9-billion (U.S.)
Lear Corp. trades for just 12.8 times TTM EPS. It has grown earnings at a 16-per-cent pace over the long term (using an average of the 3- and 4-year EPS growth rates), which the Peter Lynch based model likes. The Lynch model also likes its 0.76 PE-to-growth ratio.
The company has 0.52 price/sales ratio, which the Kenneth Fisher-based model likes.
It has a 26-per-cent return on equity and has positive free cash flow ($5.36/share), which the John Neff-inspired model likes.
It has an 86 relative strength (12-month), allowing it to rate highly on the Momentum Investor strategy.
The Martin Zweig model likes that EPS growth last quarter (36.1 per cent) is higher than long-term growth rate.
Click here for a complete breakdown of Validea's investing guru report.
Globe app users click here.
Read other research reports here.