From Nasdaq:



Validea’s Contrarian Investor model has upgraded Ares Capital Corporation (ARCC) based on the published strategy of David Dreman. The stock’s rating has changed from 79% to 90%, indicating strong interest from the strategy. Ares Capital Corporation is a large-cap value stock in the Misc. Financial Services industry. The company’s investment objective is to generate current income and capital appreciation through debt and equity investments in middle-market companies. The company primarily invests in first lien senior secured loans, second lien senior secured loans, subordinated debt, and preferred equity, with a focus on various industries including software, health care services, and commercial and professional services. The stock meets most of the criteria in Validea’s strategy analysis, including positive earnings trend, EPS growth rate, P/E ratio, price/dividend ratio, payout ratio, return on equity, pre-tax profit margins, and yield. Although it does not meet the criteria for price/cash flow and price/book value, the stock’s fundamentals and valuation have improved, leading to the upgraded rating. David Dreman, the investment legend behind the strategy, has a successful track record in managing money and is a longtime Forbes magazine columnist. Validea is an investment research service that follows the published strategies of investment legends and offers stock analysis and model portfolios based on gurus who have outperformed the market over the long-term.



Original: Validea David Dreman Strategy Daily Upgrade Report – 12/22/2023