Long-Term Value Framework for MAGIC FORMULA INVESTING – Capital Preservation Strategy

Prepared by Dr. James Wilson, CFA, Director of US Markets | Reviewed by Elena Voss, Lead Editor | Report ID: IGEMINI-247DCE35-20260531 | Data as of 2026-05-31

Executive Summary: Analysis of magic formula investing reveals a Bullish configuration: technical patterns show a Bull Flag formation, while fundamentals are supported by 65.59 EPS and a 3.6% yield. Institutional flows indicate 85% ownership with beta of 0.75.

Rating: Overweight | Target Price: $1903.56 | Next Earnings: Jun 27

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Technical Assessment

Ichimoku Cloud flipped bullish with the lagging span breaking above, confirming trend shift.

Price action carved a Bull Flag, confirmed by a 0.74x volume spike on May 07, 2026. The resistance at $1805.1 was tested.

On-chain money flow shows 33%% increase in smart money index, reinforcing the technical setup.

Fundamental Assessment

With a market cap of $2.07B, magic formula investing operates in Healthcare. P/E of 25.02x is backed by -6.7% growth.

EPS of $65.59 reveals resilient earnings quality. DuPont analysis highlights margin expansion as the key ROE driver.

Sentiment & Flow Assessment

Options skew is toward call at the 1788.69 strike, positioning for a directional move.

Dark pool prints show a 19%% surge in block trades, indicating institutional accumulation before Jun 27 earnings.

Data Snapshot

MetricValueSector Avg
Last Price$1641$1558.95
Market Cap$2.07B$1.86B
P/E Ratio25.02x21.3x
EPS (TTM)$65.59$59.03
Dividend Yield3.6%2.5%
Revenue Growth-6.7%-4%
Target Price$1903.56-
Beta0.751.00

Conclusion & Rating

Based on converging technical and fundamental signals, we rate magic formula investing as **Overweight** with a 11-month target of $1903.56. A stop-loss at $1509.72 is advised. The next earnings report on Jun 27 could serve as a catalyst.

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