Chicago, IL – September 5, 2019 – Stocks in this week’s article are MEDIFAST Inc. MED, NVR Inc. NVR, Universal Forest Products Inc. UFPI, EMCOR Group Inc. EME and AllianceBernstein Holding L.P. AB. Return on equity is an investor-favorite metric when it comes to cherry picking quality stocks. But ROE doesn’t always tell the complete story and an investor might get fooled by picking stocks based on this number. Thus, taking a step beyond the basic ROE and analyzing it at an advanced level or applying the DuPont technique seems to be an intriguing idea. The DuPont analysis allows investors to assess the elements that play a dominant role in any change in ROE. It can help investors to separate companies having higher margins from those having a high turnover. For example, high-end fashion brands generally survive on high margin as compared with retail goods, which rely on higher turnover. In fact, it also focuses on the company’s leverage status. A lofty ROE could be due to the overuse of debt. If this is the case, the strength of a company can be uncertain if it has a high debt load. So, an investor confined solely to a ROE perspective may be confused if he or she has to ju...