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21 March
Validea's Top Consumer Discretionary Stocks Based On Martin Zweig - 3/21/2024

The following are the top rated Consumer Discretionary stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.

RESTAURANT BRANDS INTERNATIONAL INC (QSR) is a large-cap growth stock in the Restaurants industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Restaurant Brands International Inc. is a quick-service restaurant company. It franchises and operates quick service restaurants serving premium coffee and other beverage and food products. Its segments include Tim Hortons (TH), Burger King (BK), Popeyes Louisiana Kitchen (PLK), Firehouse Subs (FHS) and International (INTL). Under the Tim Hortons brand, it operates in the donut/coffee/tea category of the quick service segment of the restaurant industry. Under the Burger King brand, it operates in the fast-food hamburger restaurant category of the quick service segment of the restaurant industry. Under the Popeyes brand, it operates in the chicken category of the quick service segment of the restaurant industry. Under the Firehouse Subs brand, it operates in the specialty subs category of the quick service segment of the restaurant industry. Its menu includes premium blend coffee, tea, espresso-based hot and cold specialty drinks, fresh baked goods, including donuts, bagels and more.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

Detailed Analysis of RESTAURANT BRANDS INTERNATIONAL INC

AUTOZONE INC (AZO) is a large-cap growth stock in the Auto & Truck Parts industry. The rating according to our strategy based on Martin Zweig is 69% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: AutoZone, Inc. is a retailer and distributor of automotive replacement parts and accessories in the Americas. Its Auto Parts Stores segment is the retailer and distributor of automotive parts and accessories through the Company's, stores in the United States, Mexico, and Brazil. Each store carries an extensive product line for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products. Its other segments include ALLDATA, which produces, sells, and maintains diagnostic, repair and shop management software used in the automotive repair industry and E-commerce, which includes direct sales to customers through www.autozone.com for sales that are not fulfilled by local stores. It also provides a sales program that offers commercial credit and delivery of parts and other products. The Company has approximately 7,140 stores in the United States, Mexico, and Brazil.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

Detailed Analysis of AUTOZONE INC

CHEESECAKE FACTORY INC (CAKE) is a small-cap growth stock in the Restaurants industry. The rating according to our strategy based on Martin Zweig is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: The Cheesecake Factory Incorporated is an experiential dining company focused on hospitality. The Company owns and operates about 334 restaurants throughout the United States and Canada under brands, including The Cheesecake Factory (216 locations), North Italia (37 locations) and a collection within its Fox Restaurant Concepts (FRC) business. The Company's bakery division operates two facilities that produce cheesecakes and other baked products for its restaurants, international licensees, and third-party bakery customers. The Cheesecake Factory menu features about 225 items, exclusive of beverage and dessert items and including items presented on supplemental menus, such as its SkinnyLicious menu that offers items at 590 calories or less. Its menu offerings include appetizers, pizza, seafood, steaks, chicken, burgers, small plates, pastas, salads, sandwiches, and omelets, including a selection of vegan and gluten-free items. It operates 32 Flower Child and 41 other FRC locations.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

Detailed Analysis of CHEESECAKE FACTORY INC

VISTEON CORP (VC) is a mid-cap value stock in the Auto & Truck Parts industry. The rating according to our strategy based on Martin Zweig is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Visteon Corporation is an automotive technology company. The Company provides a range of oncology diagnostic testing and consultative services which includes technical laboratory services and professional interpretation of laboratory test results by licensed physicians who specialize in pathology and oncology. It operates a network of cancer- focused testing laboratories in the United States and the United Kingdom. The Company's platforms leverage hardware and software solutions that enable the digital, electric, and autonomous evolution of the Company's global automotive customers, including BMW, Ford, Geely, General Motors, Honda, Jaguar/Land Rover, Mahindra, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Renault, Stellantis, Tata, Toyota, and Volkswagen. It designs and manufactures automotive electronics and connected car solutions, such as instrument clusters, information displays, infotainment, battery management systems, telematics solutions, and body domain modules.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

Detailed Analysis of VISTEON CORP

LAS VEGAS SANDS CORP. (LVS) is a large-cap growth stock in the Casinos & Gaming industry. The rating according to our strategy based on Martin Zweig is 62% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy has some interest in the stock and a score above 90% typically indicates strong interest.

Company Description: Las Vegas Sands Corp. is a global developer and operator of destination properties (Integrated Resorts). The Integrated Resorts features accommodations, gaming, entertainment and retail malls, convention and exhibition facilities, celebrity chef restaurants, and other amenities. Its properties also cater to high-end players by providing them with luxury amenities and premium service levels. Its other amenities include luxury accommodations, restaurants, lounges, invitation-only clubs, and private gaming salons. The Company's principal operating and developmental activities occur in two geographic areas: Macao and Singapore. In Macao, it owns The Venetian Macao Resort Hotel; The Londoner Macao; The Parisian Macao; The Plaza Macao and Four Seasons Macao, Cotai Strip, and Sands Macao. In Singapore, it owns Marina Bay Sands. It owns and operates a collection of Integrated Resorts in the Macao Special Administrative Region of the People's Republic of China (China) through Sands China Ltd.

The following table summarizes whether the stock meets each of this strategy's tests. Not all criteria in the below table receive equal weighting or are independent, but the table provides a brief overview of the strong and weak points of the security in the context of the strategy's criteria.

Detailed Analysis of LAS VEGAS SANDS CORP.

About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.

About Validea: Validea is aninvestment researchservice that follows the published strategies of investment legends. Validea offers both stock analysis and model portfolios based on gurus who have outperformed the market over the long-term, including Warren Buffett, Benjamin Graham, Peter Lynch and Martin Zweig. For more information about Validea, click here

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.