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The following are the top rated Financial stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman . This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.

LLOYDS BANKING GROUP PLC (ADR) ( LYG ) is a large-cap value stock in the Money Center Banks industry. The rating according to our strategy based on David Dreman is 91% 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: Lloyds Banking Group plc is a provider of financial services to individual and business customers in the United Kingdom. The Company's main business activities are retail and commercial banking, general insurance, and long-term savings, protection and investment. The Company's segments are Retail, Commercial Banking, Consumer Finance, Insurance and Other. The Retail segment offers a range of financial service products, including current accounts, savings and mortgages. The Commercial Banking segment offers a range of products and services, such as lending, transactional banking, working capital management, risk management and debt capital markets services. The Consumer Finance segment offers consumer lending products, including motor finance, credit cards, and unsecured personal loans. The Insurance segment provides a range of protection, pension and investment products. Its brands include Lloyds Bank, Halifax, Bank of Scotland, Scottish Widows, Colleys, Lex Autolease and AMC.

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.

MARKET CAP:PASS
EARNINGS TREND:PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE:PASS
P/E RATIO:PASS
PRICE/CASH FLOW (P/CF) RATIO:FAIL
PRICE/BOOK (P/B) VALUE:PASS
PRICE/DIVIDEND (P/D) RATIO:PASS
PAYOUT RATIO:PASS
RETURN ON EQUITY:FAIL
PRE-TAX PROFIT MARGINS:PASS
YIELD:PASS

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

APOLLO GLOBAL MANAGEMENT LLC ( APO ) is a mid-cap value stock in the Investment Services industry. The rating according to our strategy based on David Dreman is 91% 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: Apollo Global Management, LLC (Apollo) is an alternative investment manager in private equity, credit and real estate. The Company raises, invests and manages funds on behalf of pension, endowment and sovereign wealth funds, as well as other institutional and individual investors. The Company's segments include private equity, credit and real estate. The private equity segment invests in control equity and related debt instruments, convertible securities and distressed debt investments. The credit segment invests in non-control corporate and structured debt instruments, including performing, stressed and distressed investments across the capital structure. The real estate segment invests in real estate equity for the acquisition and recapitalization of real estate assets, portfolios, platforms and operating companies, and real estate debt, including first mortgage and mezzanine loans, preferred equity and commercial mortgage backed securities.

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.

MARKET CAP:PASS
EARNINGS TREND:PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE:FAIL
P/E RATIO:PASS
PRICE/CASH FLOW (P/CF) RATIO:PASS
PRICE/BOOK (P/B) VALUE:FAIL
PRICE/DIVIDEND (P/D) RATIO:PASS
PAYOUT RATIO:PASS
RETURN ON EQUITY:PASS
PRE-TAX PROFIT MARGINS:PASS
YIELD:PASS

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

THE CARLYLE GROUP LP ( CG ) is a mid-cap value stock in the Investment Services industry. The rating according to our strategy based on David Dreman is 90% 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 Carlyle Group L.P. is a diversified multi-product global alternative asset management firm. The Company operates in four segments: Corporate Private Equity ( CPE ), Real Assets, Global Market Strategies ( GMS ) and Investment Solutions. Corporate Private Equity advises its buyout and growth capital funds, which pursue various corporate investments of different sizes and growth potentials. As of December 31, 2016, the Real Assets segment advised its 26 active carry funds focused on real estate, infrastructure and energy and natural resources (including power). As of December 31, 2016, the Global Market Strategies segment advised a group of 57 active funds that pursue investment strategies, including leveraged loans and structured credit, energy mezzanine opportunities, middle market lending and distressed debt. Its Investment Solutions segment provides investment opportunities and resources for its investors and clients.

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.

MARKET CAP:PASS
EARNINGS TREND:PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE:FAIL
P/E RATIO:PASS
PRICE/CASH FLOW (P/CF) RATIO:FAIL
PRICE/BOOK (P/B) VALUE:FAIL
PRICE/DIVIDEND (P/D) RATIO:PASS
PAYOUT RATIO:PASS
RETURN ON EQUITY:PASS
PRE-TAX PROFIT MARGINS:PASS
YIELD:PASS

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

HSBC HOLDINGS PLC (ADR) (HSBC) is a large-cap growth stock in the Regional Banks industry. The rating according to our strategy based on David Dreman is 90% 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: HSBC Holdings plc (HSBC) is the banking and financial services company. The Company manages its products and services through four businesses: Retail Banking and Wealth Management (RBWM), Commercial Banking (CMB), Global Banking and Markets (GB&M), and Global Private Banking (GPB). It operates across various geographical regions, which include Europe, Asia, Middle East and North Africa, North America and Latin America. RBWM business offers Retail Banking, Wealth Management, Asset Management and Insurance. CMB services include working capital, term loans, payment services and international trade facilitation, among other services, as well as expertise in mergers and acquisitions, and access to financial markets. GB&M supports government, corporate and institutional clients across the world. GPB's products and services include Investment Management, Private Wealth Solutions, and a range of Private Banking services.

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.

MARKET CAP:PASS
EARNINGS TREND:PASS
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE:PASS
P/E RATIO:FAIL
PRICE/CASH FLOW (P/CF) RATIO:FAIL
PRICE/BOOK (P/B) VALUE:PASS
PRICE/DIVIDEND (P/D) RATIO:PASS
PAYOUT RATIO:PASS
RETURN ON EQUITY:FAIL
PRE-TAX PROFIT MARGINS:PASS
YIELD:PASS

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

ANNALY CAPITAL MANAGEMENT, INC. (NLY) is a large-cap value stock in the Misc. Financial Services industry. The rating according to our strategy based on David Dreman is 86% 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: Annaly Capital Management, Inc. is a mortgage real estate investment trust (REIT). The Company owns a portfolio of real estate related investments. Its investment groups primarily consist of Agency, which invests primarily in various types of Agency mortgage-backed securities and related derivatives to hedge these investments; Residential credit, which invests primarily in non-Agency mortgage-backed assets within securitized products and residential mortgage loan markets; Commercial real estate, which originates and invests in commercial mortgage loans, securities, and other commercial real estate investments, and Middle market, which provides customized debt financing to middle-market businesses. Its business operations consist of Annaly Commercial Real Estate Group, Inc., which is its subsidiary that specializes in originating or acquiring, financing and managing commercial loans and other commercial real estate debt; Annaly Middle Market Lending LLC, and RCap Securities, Inc.

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.

MARKET CAP:PASS
EARNINGS TREND:FAIL
EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE:FAIL
P/E RATIO:PASS
PRICE/CASH FLOW (P/CF) RATIO:PASS
PRICE/BOOK (P/B) VALUE:PASS
PRICE/DIVIDEND (P/D) RATIO:PASS
PAYOUT RATIO:PASS
RETURN ON EQUITY:PASS
PRE-TAX PROFIT MARGINS:PASS
YIELD:PASS

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

Since its inception, Validea's strategy based on David Dreman has returned 108.37% vs. 188.44% for the S&P 500. For more details on this strategy, click here

About David Dreman : Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.

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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