According to model portfolio statistics, five stocks in the Historical Low Price-Sales Model Portfolio that have gained more than 6% in the year to date are Banco de Chile (BCH, Financial), LTC Properties Inc. (LTC, Financial), Amdocs Ltd. (DOX, Financial), New Oriental Education & Technology Group Inc. (EDU, Financial) and Grifols SA (GRFS, Financial).
Markets rebound as Federal Reserve reassures stance to bring down inflation
On Wednesday, the Dow Jones Industrial Average closed at 31,037.68, up 69.86 points from Tuesday’s close of 30,967.82.
Stocks rebounded on the back of the Federal Reserve announcing in a meeting that bringing down inflation remains a key objective for the committee even though interest rate hikes may slow down the economy. According to the Aggregated Statistics Chart, a Premium feature of GuruFocus, the mean day’s change for the Standard & Poor’s 500 index stocks is 0.22% with a median of 0.35%.
GuruFocus’ model portfolios lose sparkle but historical low PS portfolio dips just slightly
Table 1 lists the year-to-date performances of GuruFocus’ model portfolios year to date. The model portfolios are rebalanced each year in January. Investors should be aware that the stocks included in the model portfolios are based on screening criteria applied in January and thus, may or may not meet the screening criteria today or even when this article is published.
| Portfolio Strategy | YTD Return | Premium Screener Link |
| Most Broadly Held Portfolio | -22.80% | Aggregated Portfolio |
| Most Weighted Portfolio | -25.09% | Aggregated Portfolio |
| Consensus Picks Portfolio | -22.42% | Consensus Picks Screen |
| Undervalued-Predictable Portfolio | -11.59% | Undervalued-Predictable Screener |
| Buffett-Munger Portfolio | -20.01% | Buffett-Munger Screener |
| Historical Low PS Portfolio | -1.77% | Historical Low PS Screener |
| Historical Low PB Portfolio | -7.60% | Historical Low PB Screener |
| High Quality Low CapEx Portfolio | -29.31% | High Quality Low CapEx Screener |
Table 1
As Table 1 illustrates, the Historical Low Price-Sales model portfolio returned -1.77% year to date, compared to the Standard & Poor’s decline of -19.74% during the same period. Several of the stocks in the model portfolio have gained at least 6% since January.
Banco de Chile
Shares of Banco de Chile (BCH, Financial) traded around $17.07, showing the stock is undervalued based on Wednesday’s price-to-GF Value ratio of 0.71. The stock has gained 19.79% year to date while its price-sales ratio of 3.42 is approximately 27% above its 10-year minimum price-sales ratio of 2.68.
The Santiago, Chile-based bank has a GF Score of 77 out of 100 based on a growth rank of 8 out of 10, a rank of 7 out of 10 for profitability and GF Value and a rank of 3 out of 10 for financial strength and momentum.
LTC Properties
Shares of LTC Properties (LTC, Financial) traded around $38.30, showing the stock is slightly overvalued based on Wednesday’s price-to-GF Value ratio of 1.1. The stock has gained 16.05% year to date.
The Westlake Village, California-based health care facility REIT has a GF Score of 72 out of 100, driven by a momentum rank of 9 out of 10 and a profitability rank of 8 out of 10 despite financial strength ranking just 4 out of 10 and growth and GF Value ranking just 3 out of 10.
Amdocs
Shares of Amdocs (DOX, Financial) traded around $83.41, showing the stock is fairly valued based on Wednesday’s price-to-GF-Value ratio of 1.01. The stock has gained 12.01% year to date.
The Chesterfield, Missouri-based communication software company has a GF Score of 93 out of 100 based on a growth rank of 10 out of 10, a profitability rank of 9 out of 10, a financial strength rank of 8 out of 10, a momentum rank of 6 out of 10 and a GF Value rank of 5 out of 10.
New Oriental Education
Shares of New Oriental Education (EDU, Financial) traded around $22.44, up 7.10% year to date. Although the company’s price-sales ratio of 2.09 is below the 10-year median of 4.38, GuruFocus’ GF Value line labels the stock as a possible value trap due to its low price-to-GF Value ratio of 0.36 and low momentum rank of 1.
The Beijing-based education company has a GF Score of 77 out of 100: Even though the stock’s momentum and GF Value rank below 2 out of 10, New Oriental Education has a financial strength rank of 6 out of 10, a profitability rank of 9 out of 10 and a growth rank of 10 out of 10.
Grifols
Shares of Grifols (GRFS, Financial) traded around $11.20, up 6.59% year to date. Although the company’s price-sales ratio of 2.18 is just approximately 13% above its 10-year low of 1.93, the GF Value line labels the stock a possible value trap due to its low price-to-GF Value ratio of 0.58 and poor financial strength rank of 4 out of 10.
The Spanish health care company has a GF Score of 85 out of 100, driven by a profitability rank of 9 out of 10 and a rank of 8 out of 10 for growth and GF Value despite financial strength and momentum ranking just 4 out of 10.
