Validea’s systematic investment framework draws inspiration from Peter Lynch, the legendary manager who propelled Fidelity’s Magellan Fund to extraordinary heights. This methodical approach embodies the Growth At a Reasonable Price (GARP) philosophy, identifying companies with robust growth trajectories that remain attractively valued.
Central to this strategy is the PEG ratio calculation, which evaluates a company’s price-to-earnings ratio relative to its earnings growth rate. Securities displaying PEG ratios under 1.0 may represent growth opportunities that the market has yet to fully price in.
The model prizes steady earnings advancement, particularly favoring enterprises that demonstrate consistent 20-30% yearly growth. It approaches exceptionally high growth projections with appropriate caution, acknowledging that astronomical growth rates rarely prove sustainable long-term.
Lynch’s analytical framework categorizes businesses into three distinct profiles—slow growers, stalwarts, and fast growers—each requiring specific evaluation criteria tailored to their growth characteristics.
Balance sheet strength remains a critical consideration, with the strategy prioritizing companies demonstrating responsible debt management as evidenced by their debt-to-equity measures. This emphasis on sustainable financial leverage helps identify organizations better positioned to weather economic challenges.
Discover how Validea’s models can help you identify high-quality, long-term investments, even in changing market conditions. Visit Validea.com to access in-depth stock analysis and tools designed to emulate proven investment principles. Take a Free Trial Today!
Here are the top ten highest scoring stocks for April of 2025 based on Validea’s Peter Lynch strategy.
| Ticker | Company Name | P/E/Growth Investor | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield | Long-Term EPS Growth |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ACLS | AXCELIS TECHNOLOGIES INC | 100 | $49.84 | $1,604 | 8.1 | 1.6 | 24 | 1.6 | 7.4 | 0.0% | 32.1% |
| AX | AXOS FINANCIAL INC | 100 | $62.73 | $3,582 | 8.5 | 3.0 | 76 | 1.4 | 7.8 | 0.0% | 25.9% |
| BAP | CREDICORP LTD | 100 | $197.87 | $15,718 | 10.5 | 2.6 | 75 | 1.7 | 9.0 | 0.0% | 40.0% |
| BIDU | BAIDU INC (ADR) | 100 | $90.74 | $31,194 | 10.0 | 1.7 | 50 | 0.9 | 7.3 | 0.0% | 30.1% |
| BK | BANK OF NEW YORK MELLON CORP | 100 | $78.65 | $56,269 | 12.8 | 3.0 | 84 | 1.5 | 11.9 | 2.3% | 11.6% |
| HRTG | HERITAGE INSURANCE HOLDINGS INC | 100 | $18.80 | $575 | 9.4 | 0.7 | 92 | 2.0 | 7.8 | 0.0% | 38.8% |
| OFG | OFG BANCORP | 100 | $38.01 | $1,708 | 9.0 | 2.4 | 65 | 1.4 | 7.6 | 2.6% | 27.5% |
| OZK | BANK OZK | 100 | $42.72 | $4,853 | 7.0 | 2.9 | 52 | 0.9 | 8.2 | 3.8% | 17.4% |
| PLAB | PHOTRONICS INC | 100 | $18.67 | $1,187 | 7.9 | 1.4 | 34 | 1.0 | 4.2 | 0.0% | 36.7% |
| TNK | TEEKAY TANKERS LTD | 100 | $42.31 | $1,455 | 3.6 | 1.2 | 39 | 0.8 | 2.9 | 2.4% | 43.7% |
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