Validea Joel Greenblatt Strategy Daily Upgrade Report - 5/22/2025
Validea's Earnings Yield Investor Model: The model, based on Joel Greenblatt's strategy, has upgraded the ratings for MASCO Corp and YETI Holdings Inc from 70% to 80%, indicating a strong interest in both stocks due to their underlying fundamentals and valuations.
About Joel Greenblatt and Validea: Joel Greenblatt is known for his "Magic Formula" investment strategy that has historically outperformed the market, while Validea provides stock analysis based on strategies from various successful investors.
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Plan to Increase Masco's Yield from 1.9% to 12.6% Through Options Trading
Dividend Predictability: Dividend amounts for companies like Masco Corp. are influenced by profitability, making them unpredictable; the recent dividend yield is 1.9%.
Options Trading Insights: The analysis of Masco's stock volatility and historical trading can inform decisions on selling covered calls, particularly at the $70 strike price.
Current Market Activity: On a recent trading day, S&P 500 options showed a put:call ratio of 0.52, indicating a preference for call options among traders compared to the long-term median.
Author's Perspective: The opinions expressed in the article reflect the author's views and do not necessarily represent those of Nasdaq, Inc.
Retail Stock Downgraded, While Evercore Launches Buy Ratings on Two Stocks
Market Trends: The S&P 500 declined as investors shifted from tech stocks to value-oriented sectors, with Broadcom's stock dropping over 4% while financials like Wells Fargo and Goldman Sachs performed well. Key economic reports are anticipated this week, including retail sales and employment data.
Costco Downgrade: Jim Cramer downgraded Costco to a hold-equivalent 2 rating due to concerns over membership renewals and stock performance lagging behind the market. A potential sale of the stock is being considered.
Analyst Ratings: Evercore ISI initiated buy ratings for Honeywell and GE Vernova, citing Honeywell's upcoming aerospace spin-off and GE Vernova's strong earnings growth from electrification. However, GE Vernova was downgraded to a 2 rating after reaching a record high.
Stock Coverage: A rapid-fire review of stocks included ServiceNow, Masco, Zoetis, Texas Instruments, and Dollar General, with trade alerts provided to subscribers of the CNBC Investing Club before any stock transactions are executed.
