Validea Benjamin Graham Strategy Daily Upgrade Report - 4/4/2025
Stock Ratings Update: Validea's Value Investor model, based on Benjamin Graham's strategy, has upgraded several stocks including SKF AB, Olympic Steel Inc., LCI Industries, Tenaris SA, Steven Madden Ltd., and Timken Co., with ratings reflecting strong interest due to improved fundamentals and valuations.
About Benjamin Graham and Validea: Benjamin Graham, known as the "Father of Value Investing," significantly influenced investment strategies and mentored notable investors like Warren Buffett. Validea provides stock analysis and model portfolios based on the strategies of legendary investors, aiming to outperform the market.
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LCI Set to Exceed Q4 Earnings Expectations
- Earnings Announcement Date: LCI (LCII) is set to announce its Q4 earnings on February 18 before market open, with a consensus EPS estimate of $0.70, reflecting a robust year-over-year growth of 89.2%, indicating strong profitability and growth potential.
- Revenue Growth Expectations: Analysts project LCI's revenue to reach $913.04 million, representing a 13.7% year-over-year increase, which underscores the company's competitive position and ongoing sales momentum in the market.
- Historical Performance: Over the past two years, LCI has successfully beaten EPS estimates 88% of the time and revenue estimates 75% of the time, demonstrating reliability in financial forecasting and bolstering market confidence.
- Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and one downward revision, while revenue estimates have experienced three upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on LCI's future performance.
LCI Industries Reports Strong Q4 2025 Earnings with Growth and Margin Expansion
- Significant Revenue Growth: LCI Industries reported consolidated net sales of $933 million in Q4 2025, reflecting a 16% year-over-year increase, with OEM segment sales rising 18% to $737 million, indicating strong market share gains and new product sales performance.
- Contribution from Innovative Products: The company's five recently launched products are generating an annualized revenue run rate of approximately $225 million, particularly driven by the success of the Chill Cube air conditioner platform and the Sundeck patio system, enhancing overall revenue growth and market competitiveness.
- Improved Profitability: The fourth quarter operating profit reached $35 million, with an operating margin of 3.8%, showing improvement from the previous year, primarily due to cost control and increased market share, with expectations for the 2026 operating margin to rise to 7.5%-8%.
- Optimistic Future Outlook: The company anticipates consolidated revenue for 2026 to be between $4.2 billion and $4.3 billion, with adjusted EPS projected at $8.25 to $9.25, emphasizing ongoing growth through facility consolidations and divestitures of lower-margin products.
LCI Reports Q4 Earnings Beat with Strong Revenue Growth
- Earnings Beat: LCI's Q4 non-GAAP EPS of $0.89 exceeded expectations by $0.19, indicating strong profitability and enhanced competitive positioning in the market.
- Significant Revenue Growth: The company reported Q4 revenue of $932.7 million, a 16.2% year-over-year increase, surpassing estimates by $19.66 million, primarily driven by robust sales in the North American RV market and market share gains.
- Strong OEM Performance: The OEM segment saw a $129.6 million increase in sales, largely due to price hikes from rising material costs and contributions from acquired businesses, showcasing the company's integration capabilities and market adaptability.
- Optimistic Future Outlook: LCI anticipates net sales of approximately $343 million in 2026, a 4% increase from the previous year, with adjusted EPS projected between $8.25 and $9.25, reflecting confidence in future growth prospects.
LCI (LCII) Demonstrates Rapid Growth Yet Remains an Affordable Investment
Momentum Investing Strategy: Momentum investors focus on "buying high and selling higher," avoiding traditional strategies like buying low and waiting for recovery, which can be risky.
LCI Industries (LCII) Performance: LCII has shown significant price momentum with a 14.1% increase over four weeks and a 25.5% gain over 12 weeks, earning a Momentum Score of A and a Zacks Rank #1 (Strong Buy).
Valuation and Growth Potential: Despite its strong momentum, LCII is trading at a reasonable Price-to-Sales ratio of 0.74, indicating it is attractively priced with potential for further growth.
Investment Tools and Recommendations: Zacks offers various stock-picking strategies and tools, including the Research Wizard, to help investors identify high-potential stocks, with past recommendations yielding significant returns.
Upcoming Ex-Dividend Dates for Newell Brands, LCI Industries, and Kraft Heinz
Upcoming Ex-Dividend Dates: On 11/28/25, Newell Brands Inc (NWL), LCI Industries (LCII), and Kraft Heinz Co (KHC) will trade ex-dividend, with respective dividends of $0.07, $1.15, and $0.40 scheduled for payment on 12/15/25, 12/12/25, and 12/26/25.
Expected Price Adjustments: Following the ex-dividend dates, NWL shares are expected to drop by approximately 2.02%, LCII by 0.98%, and KHC by 1.57% based on their recent stock prices.
Dividend Yield Estimates: The estimated annualized yields for the upcoming dividends are 8.09% for Newell Brands Inc, 3.94% for LCI Industries, and 6.29% for Kraft Heinz Co, indicating potential stability in their dividend payments.
Current Trading Performance: As of Wednesday trading, Newell Brands Inc shares are flat, LCI Industries shares have increased by about 4%, and Kraft Heinz Co shares are up approximately 0.8%.
LCI Industries to Attend Upcoming Truist Conference
Company Participation: LCI Industries will participate in the Truist Securities Gaming, Lodging, Leisure & Restaurants Summit on November 20, 2025, with CFO Lillian Etzkorn engaging in one-on-one meetings with investors and analysts.
Company Overview: LCI Industries, through its Lippert subsidiary, is a leading supplier of engineered components for the outdoor recreation and transportation markets, emphasizing innovation and customer experience.
Forward-Looking Statements: The press release includes forward-looking statements regarding the company's financial condition and business strategies, highlighting potential risks and uncertainties that could affect actual results.
Caution on Reliance: Readers are advised not to place undue reliance on forward-looking statements, as actual outcomes may differ significantly due to various factors, and the company disclaims any obligation to update these statements.
LCI Set to Exceed Q4 Earnings Expectations
- Earnings Announcement Date: LCI (LCII) is set to announce its Q4 earnings on February 18 before market open, with a consensus EPS estimate of $0.70, reflecting a robust year-over-year growth of 89.2%, indicating strong profitability and growth potential.
- Revenue Growth Expectations: Analysts project LCI's revenue to reach $913.04 million, representing a 13.7% year-over-year increase, which underscores the company's competitive position and ongoing sales momentum in the market.
- Historical Performance: Over the past two years, LCI has successfully beaten EPS estimates 88% of the time and revenue estimates 75% of the time, demonstrating reliability in financial forecasting and bolstering market confidence.
- Revision Dynamics: In the last three months, EPS estimates have seen two upward revisions and one downward revision, while revenue estimates have experienced three upward revisions with no downward adjustments, reflecting analysts' optimistic outlook on LCI's future performance.
LCI Industries Reports Strong Q4 2025 Earnings with Growth and Margin Expansion
- Significant Revenue Growth: LCI Industries reported consolidated net sales of $933 million in Q4 2025, reflecting a 16% year-over-year increase, with OEM segment sales rising 18% to $737 million, indicating strong market share gains and new product sales performance.
- Contribution from Innovative Products: The company's five recently launched products are generating an annualized revenue run rate of approximately $225 million, particularly driven by the success of the Chill Cube air conditioner platform and the Sundeck patio system, enhancing overall revenue growth and market competitiveness.
- Improved Profitability: The fourth quarter operating profit reached $35 million, with an operating margin of 3.8%, showing improvement from the previous year, primarily due to cost control and increased market share, with expectations for the 2026 operating margin to rise to 7.5%-8%.
- Optimistic Future Outlook: The company anticipates consolidated revenue for 2026 to be between $4.2 billion and $4.3 billion, with adjusted EPS projected at $8.25 to $9.25, emphasizing ongoing growth through facility consolidations and divestitures of lower-margin products.
LCI Reports Q4 Earnings Beat with Strong Revenue Growth
- Earnings Beat: LCI's Q4 non-GAAP EPS of $0.89 exceeded expectations by $0.19, indicating strong profitability and enhanced competitive positioning in the market.
- Significant Revenue Growth: The company reported Q4 revenue of $932.7 million, a 16.2% year-over-year increase, surpassing estimates by $19.66 million, primarily driven by robust sales in the North American RV market and market share gains.
- Strong OEM Performance: The OEM segment saw a $129.6 million increase in sales, largely due to price hikes from rising material costs and contributions from acquired businesses, showcasing the company's integration capabilities and market adaptability.
- Optimistic Future Outlook: LCI anticipates net sales of approximately $343 million in 2026, a 4% increase from the previous year, with adjusted EPS projected between $8.25 and $9.25, reflecting confidence in future growth prospects.
LCI (LCII) Demonstrates Rapid Growth Yet Remains an Affordable Investment
Momentum Investing Strategy: Momentum investors focus on "buying high and selling higher," avoiding traditional strategies like buying low and waiting for recovery, which can be risky.
LCI Industries (LCII) Performance: LCII has shown significant price momentum with a 14.1% increase over four weeks and a 25.5% gain over 12 weeks, earning a Momentum Score of A and a Zacks Rank #1 (Strong Buy).
Valuation and Growth Potential: Despite its strong momentum, LCII is trading at a reasonable Price-to-Sales ratio of 0.74, indicating it is attractively priced with potential for further growth.
Investment Tools and Recommendations: Zacks offers various stock-picking strategies and tools, including the Research Wizard, to help investors identify high-potential stocks, with past recommendations yielding significant returns.
Upcoming Ex-Dividend Dates for Newell Brands, LCI Industries, and Kraft Heinz
Upcoming Ex-Dividend Dates: On 11/28/25, Newell Brands Inc (NWL), LCI Industries (LCII), and Kraft Heinz Co (KHC) will trade ex-dividend, with respective dividends of $0.07, $1.15, and $0.40 scheduled for payment on 12/15/25, 12/12/25, and 12/26/25.
Expected Price Adjustments: Following the ex-dividend dates, NWL shares are expected to drop by approximately 2.02%, LCII by 0.98%, and KHC by 1.57% based on their recent stock prices.
Dividend Yield Estimates: The estimated annualized yields for the upcoming dividends are 8.09% for Newell Brands Inc, 3.94% for LCI Industries, and 6.29% for Kraft Heinz Co, indicating potential stability in their dividend payments.
Current Trading Performance: As of Wednesday trading, Newell Brands Inc shares are flat, LCI Industries shares have increased by about 4%, and Kraft Heinz Co shares are up approximately 0.8%.
LCI Industries to Attend Upcoming Truist Conference
Company Participation: LCI Industries will participate in the Truist Securities Gaming, Lodging, Leisure & Restaurants Summit on November 20, 2025, with CFO Lillian Etzkorn engaging in one-on-one meetings with investors and analysts.
Company Overview: LCI Industries, through its Lippert subsidiary, is a leading supplier of engineered components for the outdoor recreation and transportation markets, emphasizing innovation and customer experience.
Forward-Looking Statements: The press release includes forward-looking statements regarding the company's financial condition and business strategies, highlighting potential risks and uncertainties that could affect actual results.
Caution on Reliance: Readers are advised not to place undue reliance on forward-looking statements, as actual outcomes may differ significantly due to various factors, and the company disclaims any obligation to update these statements.
