In his latest column for Seeking Alpha, Validea CEO John Reese looks at a stock that gets strong reviews from two of his best performing Guru Strategies: his Motley Fool- and Martin Zweig-inspired approaches.
The stock — Florida property & casualty insurer HCI Group — triggered a Trade Alert from Reese’s Zweig- and Fool-based models in late December. “This alert is a relatively rare one,” writes Reese. “But in the 22 previous occurrences, the stock triggering the buy signal has gone on to gain an average of 29.1% over the coming six months vs. an average of 2.4% for the S&P 500. In only three of those 22 cases has the stock failed to make money. Both the overall average return and the accuracy rate are among the best of any of the alerts I use.”
Reese explains why HCI’s fundamentals are so attractive to the Fool- and Zweig-based models, both of which are giving high grades to very few other stocks these days. And he talks about some of the non-quantitative factors the firm has going for it as well.