Validea's Top Consumer Discretionary Stocks Based On Joel Greenblatt - 8/14/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 14 2025
0mins
Should l Buy ADT?
Source: NASDAQ.COM
Top Rated Stock: ADT Inc. is highlighted as a mid-cap value stock in the Security Systems & Services industry, receiving a 60% rating based on Joel Greenblatt's Earnings Yield Investor model, indicating moderate interest in its fundamentals and valuation.
Company Overview: ADT Inc. specializes in providing security solutions for homes and small businesses, including alarms, surveillance systems, and personal emergency response services, aimed at enhancing safety and independent living.
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Analyst Views on ADT
Wall Street analysts forecast ADT stock price to rise
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 7.640
Low
9.00
Averages
9.00
High
9.00
Current: 7.640
Low
9.00
Averages
9.00
High
9.00
About ADT
ADT Inc. provides safe, smart and sustainable solutions for people, homes and small businesses. The Company's core security offerings include burglar and life safety alarms, smart security cameras, smart home automation systems, and video surveillance systems. Its security offerings are designed to detect intrusion; control access; sense movement, smoke, fire, carbon monoxide, leaks, temperature, and other environmental conditions and hazards; and address personal medical emergencies, such as injuries or unanticipated falls. It offers its customers routine maintenance and the installation of upgraded or additional equipment. Additionally, its personal emergency response system products and services utilize its security monitoring infrastructure to provide customers with solutions that help to sustain independent living, detect when a fall occurs, and provide protection while on the go with geolocation capability.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Business Transformation: Lyft's evolution from a ride-hailing app to a fleet management company reflects its ability to diversify its business model and adapt to market changes, potentially creating new revenue streams.
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- Market Underestimation: Despite being undervalued by the market, ADT's potential as a cash cow remains significant, with analysts believing the company is poised for higher profitability and shareholder returns in the future.
- Institutional Investment Dynamics: Recent increases in holdings by major institutional investors in ADT indicate confidence in the company's growth prospects, and such institutional behavior typically has a positive impact on stock prices.
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See More
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See More
Benzinga Stock Whisper Index Analysis
- Strong Company Performance: CEO Risher highlighted record bookings, profits, and cash flow in the quarter, indicating robust financial health that may attract more investor interest.
- Future Strategic Focus: The company plans to invest heavily in autonomous vehicles, demonstrating foresight in technology innovation and market trends aimed at enhancing competitive positioning.
- Business Transformation: Lyft's evolution from a ride-hailing app to a fleet management company reflects its ability to diversify its business model and adapt to market changes, potentially creating new revenue streams.
- Investor Attention: As analysts closely monitor the balance between growth and profitability, Lyft's stock is likely to become a focal point for investors, influencing its market performance going forward.
See More
ADT Added to S&P SmallCap 600 Index
- Index Inclusion Impact: ADT was officially added to the S&P SmallCap 600 Index before trading opened on February 9, 2026, which is expected to enhance its market visibility and potentially attract more institutional investors, thereby driving up its stock price.
- Market Underestimation: Despite being undervalued by the market, ADT's potential as a cash cow remains significant, with analysts believing the company is poised for higher profitability and shareholder returns in the future.
- Institutional Investment Dynamics: Recent increases in holdings by major institutional investors in ADT indicate confidence in the company's growth prospects, and such institutional behavior typically has a positive impact on stock prices.
- Quantitative Rating Analysis: According to Seeking Alpha's Quant Rating, ADT ranks poorly among mid-cap stocks, particularly in terms of dividend safety, prompting investors to monitor its financial health to assess long-term investment risks.
See More
ADT Reveals Addition to the S&P SmallCap 600® Index
Announcement of Inclusion: A company has announced its inclusion in the S&P Small Cap 600® Index.
Significance of Inclusion: This inclusion is expected to enhance the company's visibility and credibility in the market.
See More
Mid-Cap Stocks Dividend Safety Ratings Analysis
- Dividend Safety Overview: In the context of unpredictable market conditions, mid-cap stocks like ADT, Global Net Lease, and Levi Strauss & Co. received the lowest dividend safety grade of F, indicating significant risks in maintaining dividend payments, which could undermine investor confidence.
- Rating Criteria Explained: The dividend safety grade assesses a company's ability to sustain dividends through various market conditions by analyzing multiple financial factors beyond just current yield, with grades ranging from A+ to F, where D+ or below is considered a sell signal.
- Top Five Companies: Among the lowest-rated stocks, American Eagle Outfitters and Bath & Body Works received D- grades, suggesting they also face sustainability risks in dividend payments, potentially impacting shareholder returns.
- Market Impact: As market volatility increases, investor focus on dividend safety intensifies, and companies with lower ratings may experience greater capital outflow risks, leading to downward pressure on their stock prices and affecting overall market sentiment.
See More
S&P 500 and Other Index Constituents Adjustments
- Constituent Changes: On February 9, 2026, the S&P 500 will add Ciena (CIEN) while removing Dayforce (DAY), impacting investor allocation strategies in the information technology and industrial sectors.
- MidCap Adjustments: On the same day, the S&P MidCap 400 will add Arrowhead Pharmaceuticals (ARWR) and remove Ciena (CIEN), potentially affecting market sentiment towards the healthcare sector.
- SmallCap Changes: The S&P SmallCap 600 will add ADT (ADT) and remove Arrowhead Pharmaceuticals (ARWR) on February 9, which may alter market performance related to consumer discretionary stocks.
- Subsequent Adjustments: On February 10, the S&P SmallCap 600 will add OneSpaWorld Holdings (OSW) and remove Dynavax Technologies (DVAX), further influencing small-cap investor choices and market dynamics.
See More
S&P 500 Constituents Changes Announced
- Constituent Replacement: Ciena Corp. will replace Dayforce Inc. in the S&P 500 effective February 9, 2026, indicating a shift in the information technology sector that may influence investor confidence in the industry.
- MidCap Adjustment: Arrowhead Pharmaceuticals will take Ciena's place in the S&P MidCap 400, reflecting a market restructuring in the healthcare sector that could provide new investment opportunities for investors.
- SmallCap Changes: ADT Inc. will replace Arrowhead Pharmaceuticals in the S&P SmallCap 600, which is expected to enhance the market performance of the consumer discretionary category and attract more investor attention.
- Acquisition Impact: OneSpaWorld Holdings will replace Dynavax Technologies on February 10, 2026, demonstrating ongoing market interest in the health tech sector, potentially driving increased trading activity in related stocks.
See More
