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 has a distribution agreement with Validea.ca. Try it.
Toronto-based niche mortgage lender Equitable Group Inc. (founded in 1970), serves single family, small and large commercial borrowers, and their mortgage advisors. The company has a $600-million market cap, and in addition to the mortgage business it has deposit services and is a provider of Guaranteed Investment Certificates.
It was recently upgraded in Validea’s Warren Buffett-based model, which likes that it has upped EPS every year over the last decade, has a 16.9 per cent return on equity in the same time period, and has a 13.5 per cent earnings yield.
Also recently upgraded in the Martin Zweig-based model, which likes that it has strong long-term earnings growth (15.8 per cent) and sales growth (24.6 per cent). Its earnings growth in the most recent quarter (18.7 per cent) is also greater than the long-term rate.
Lastly, it gets strong interest from the James O’Shaughnessy-inspired growth model, thanks in part to combination of high 12-month relative strength (88) and low price/sales ratio (1.2).
Click here for a detailed breakdown of Validea’s investing guru report.