Chicago, IL – September 20, 2019 – Stocks in this week’s article are NVR Inc. NVR, MEDIFAST Inc. MED, BMC Stock Holdings Inc. BMCH, Universal Forest Products Inc. UFPI and EMCOR Group Inc. EME. Return on equity (ROE) can be considered one of the most reliable metrics for investors. That said, we would like to note that the basic ROE calculation doesn’t always tell the complete story and an investor might get misled 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 evaluate the elements that drive any change in ROE. It helps investors distinguish companies with higher margins from those having a high 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 is in question if it has a high debt load. This is where DuPont analysis wins while picking the better stock. Investors can simply do this analysis by taking a look at the company’s financials. However, looking at the financial statements of eac...