Benjamin Graham Inspired Picks

In his book The Intelligent Investor, the “Father of Value Investing” (and Warren Buffett’s mentor) drives home the importance of evaluating a business’s fundamentals before investing. In a recent article for Forbes, Validea CEO John Reese explains the metrics he used  to create his Graham-inspired stock screening model and offers the following high-scoring picks:

Genesco (GCO) is a retailer and wholesaler of footwear, apparel and accessories that earns high marks for its solid revenue base, liquidity and low leverage. Long-term growth in earnings-per-share well exceeds the minimum requirement under this model.

Myriad Genetics (MYGN) is engaged in the discovery, development and marketing of molecular diagnostic tests. Our Graham-based model likes the company’s long-term EPS growth as well as its attractive price-earnings ratio, and liquidity is more than double the required minimum.

G-III Apparel Group Ltd. (GIII) designs, manufactures and markets a range of apparel products including both licensed and private label brands. Sales well exceed the minimum requirement under this model, and growth in long-term EPS is considered exceptional.

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