The following are the top rated Financial 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.

ONEMAIN HOLDINGS INC (OMF) is a mid-cap value stock in the Consumer Financial Services industry. The rating according to our strategy based on Martin Zweig is 89% 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: OneMain Holdings, Inc. is a financial services holding company. The Company is a consumer finance company, which is engaged in providing personal loan products; credit and non-credit insurance, and service loans owned by it and service or subservice loans owned by third-parties. The Company’s segments include Consumer and Insurance; Acquisitions and Servicing; Real Estate, and Other. It is engaged in pursuing strategic acquisitions and dispositions of assets and businesses, including loan portfolios or other financial assets. The Company originates and services personal loans (secured and unsecured) through two business divisions: branch operations and centralized operations. As of December 31, 2016, its combined branch operations included over 1,800 branch offices in 44 states. It offers optional credit insurance products to its customers, including credit life insurance, credit disability insurance, credit involuntary unemployment insurance and collateral protection insurance.

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.

P/E RATIO: FAIL
REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: PASS
LONG-TERM EPS GROWTH: PASS
INSIDER TRANSACTIONS: PASS

For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here

OWL ROCK CAPITAL CORP (ORCC) is a mid-cap value stock in the Investment Services industry. The rating according to our strategy based on Martin Zweig is 89% 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: Owl Rock Capital Corporation is a specialty finance company. The Company is focused on lending to the United States and middle-market companies. The Company invests in senior secured or unsecured loans, subordinated loans or mezzanine loans and, to a lesser extent, equity-related securities including warrants, preferred stock and similar forms of senior equity, which may or may not be convertible into a portfolio Company’s common equity. Its investment objective is to generate current income and, to a lesser extent, capital appreciation by targeting investment opportunities with favorable risk-adjusted returns.

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.

P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS
SALES GROWTH RATE: FAIL
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: FAIL
LONG-TERM EPS GROWTH: PASS
INSIDER TRANSACTIONS: PASS

For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here

VICTORY CAPITAL HOLDINGS INC (VCTR) is a small-cap value stock in the Investment Services industry. The rating according to our strategy based on Martin Zweig is 89% 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: Victory Capital Holdings, Inc. is an investment management company. The Company’s model features an operating platform that provides centralized distribution, marketing and operations infrastructure to its franchises and solutions platform. Its solutions platform consists of multi-Franchise and customized solutions strategies that are primarily rules-based. It offers its solutions platform through a variety of vehicles, including separate accounts, mutual funds and VictoryShares, which is its exchange-traded funds (ETF) brand. Its franchises include Expedition Investment Partners, INCORE Capital Management, Integrity Asset Management, Sophus Capital, Sycamore Capital, Trivalent Investments, Park Avenue, SailingStone and KPB Investment Advisors. The Company’s franchises and solutions platform, as of September 30, 2017, offered 70 investment strategies with its focus asset classes, consisting of United States small- and mid-cap equities, global/non-United States equities and solutions.

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.

P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: FAIL
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: FAIL
LONG-TERM EPS GROWTH: PASS
INSIDER TRANSACTIONS: PASS

For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here

ARCH CAPITAL GROUP LTD. (ACGL) is a large-cap value stock in the Insurance (Prop. & Casualty) industry. The rating according to our strategy based on Martin Zweig is 85% 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: Arch Capital Group Ltd. provides insurance, reinsurance and mortgage insurance. The Company provides a range of property, casualty and mortgage insurance and reinsurance lines. The Company operates in five segments: insurance, reinsurance, mortgage, other and corporate. The insurance segment’s product lines include construction and national accounts; excess and surplus casualty; lenders products; professional lines; programs; property, energy, marine and aviation; travel, accident and health, and other. The reinsurance segment’s product lines include casualty; marine and aviation; other specialty; property catastrophe; property excluding property catastrophe, and other. The mortgage segment includes the results of Arch Mortgage Insurance Company and Arch Mortgage Insurance Designated Activity Company, which are providers of mortgage insurance products and services to the United States and European markets. The other segment includes the results of Watford Holdings 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.

P/E RATIO: PASS
REVENUE GROWTH IN RELATION TO EPS GROWTH: FAIL
SALES GROWTH RATE: PASS
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: FAIL
LONG-TERM EPS GROWTH: PASS
INSIDER TRANSACTIONS: PASS

For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here

BANCO BBVA ARGENTINA SA (ADR) (BBAR) is a small-cap value stock in the Regional Banks industry. The rating according to our strategy based on Martin Zweig is 85% 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: Banco Bbva Argentina SA, formerly known as BBVA French Bank, is an Argentina-based banking institution. Through its banking platform, the Bank provides a broad range of financial and non-financial services to both individuals and companies. It manages three business lines: Retail Banking, Small and Medium-Sized Companies and Corporate and Investment Banking (C&IB). Retail Banking offers checking and savings accounts, time deposits, credit cards, loans, mortgages, insurance and investment products, among others. Small and Medium-Sized Companies targets local private-sector companies providing financing products, factoring, checking accounts, time deposits, transactional and payroll services, insurance and investment products, among others. C&IB offers financial services to corporations and multinational companies, as well as global transaction services, global markets solutions, long term financing, among others. The Bank is active locally, mostly.

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.

P/E RATIO: FAIL
REVENUE GROWTH IN RELATION TO EPS GROWTH: PASS
SALES GROWTH RATE: FAIL
CURRENT QUARTER EARNINGS: PASS
QUARTERLY EARNINGS ONE YEAR AGO: PASS
POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: PASS
EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: PASS
EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: PASS
EARNINGS PERSISTENCE: PASS
LONG-TERM EPS GROWTH: PASS
INSIDER TRANSACTIONS: PASS

For a full detailed analysis using NASDAQ’s Guru Analysis tool, click here

Since its inception, Validea’s strategy based on Martin Zweig has returned 233.05% vs. 150.34% for the S&P 500. For more details on this strategy, click here

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 an investment research service 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.



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