The ranks of the names assembly my modified Benjamin Graham “Shares for the Defensive Investor” standards proceed to develop. Ten weeks in the past, there have been 10, a big quantity in its personal proper. Now there are 13. It isn’t straightforward to make the lower, given the somewhat stringent standards:

• Enough dimension. An organization will need to have a minimum of $500 million in gross sales on a trailing 12-month foundation. (Graham used a $100 million minimal and a minimum of $50 million in whole property.)
• Sturdy monetary situation. An organization will need to have a present ratio (present property divided by present liabilities) of a minimum of 2.0. It additionally will need to have much less long-term debt than working capital.
• Earnings stability. A enterprise will need to have had constructive earnings for the previous seven years. (Graham used a 10-year minimal.)
• Dividend document. The corporate will need to have paid a dividend for the previous seven years. (Graham required 20 years.)
• Earnings development. Earnings will need to have expanded by a minimum of 3% compounded yearly over the previous seven years. (Graham mandated a one-third acquire in earnings per share over the most recent 10 years.)
• Average price-to-earnings (P/E) ratio. A inventory will need to have had a 15 or decrease common P/E over the previous three years.
• Average ratio of worth to property. The value-to-earnings ratio occasions the price-to-book worth ratio have to be lower than 22.5.
• No utilities or retailers

The most important shock stays Intel (INTC) , which I consider is the biggest identify that has graced the record since I started operating this display screen a few years in the past. Since my Might column on Intel, INTC has fallen one other 11% and trades at 14.5x and 12x 2023 and 2024 consensus earnings estimates, respectively, whereas yielding 3.7%.

Winnebago Industries (WGO) can also be a holdover from Might. After dipping from $56 to $44 between mid and late Might, shares have recovered to the $59 degree. Winnebago now trades at about 9x and 6.5x 2023 and 2024 consensus estimates, respectively.

The opposite eight from Might are Johnson Outside (JOUT) , Reliance Metal (RS) , Industrial Metals (CMC) , Encore Wire (WIRE) , Preformed Line Merchandise (PLPC) , Superior Group (SGC) , Mueller Industries (MLI) and Amcom Distributing (DIT) .

Newcomers embrace Sturm, Ruger & Co. (RGR) , Evercore Inc. (EVR) and Nucor Corp. (NUE) . RGR is at the moment buying and selling at 11.5x 2023 consensus earnings estimates and yields 5.28% (primarily based on trailing dividends because the dividend shouldn’t be constant; final quarter it was 68 cents, which means an indicated yield of 4.3%). EVR trades at 11.5x and 12x 2023 and 2024 consensus earnings estimates, respectively, and yields 2.88%. NUE, which is a repeat offender from years previous, trades at 12x and 10x 2023 and 2024 consensus earnings estimates, respectively, and yields 1.7%.

It’s considerably unbelievable to me that Intel nonetheless makes the lower and is even cheaper than it was in Might.