**Validea’s Low PE Investor Model Update: Magnolia Oil & Gas Corp (MGY)**
Today, we are pleased to share the latest upgrades for Validea’s Low PE Investor model, based on the published strategy of investment legend John Neff. This approach targets firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
**Stock Highlight: Magnolia Oil & Gas Corp (MGY)**
Magnolia Oil & Gas Corp is a mid-cap value stock operating within the Oil & Gas Operations industry. According to our strategy rooted in John Neff’s methodology, MGY’s rating improved notably—from 60% to 79%—driven by the company’s underlying fundamentals and the stock’s valuation.
A score of 80% or above generally indicates the strategy has some interest in a stock, while a rating over 90% signals strong interest. MGY is approaching that threshold, making it a name to watch.
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### Company Description
Magnolia Oil & Gas Corporation is an oil and gas exploration and production company focused primarily in South Texas, centered on the rich Eagle Ford Shale and Austin Chalk formations. The company’s oil and natural gas properties are located mainly in the Karnes and Giddings areas of South Texas.
Magnolia’s asset portfolio includes an extensive leasehold position totaling approximately 817,907 gross (604,057 net) acres. This comprises 79,067 gross (54,936 net) acres in the Karnes area and 738,840 gross (549,121 net) acres in the Giddings area.
– **Giddings Area:** The assets here lie primarily within Brazos, Burleson, Fayette, Grimes, Lee, Milam, Robertson, and Washington Counties, Texas.
– **Karnes Area:** This covers properties mainly in Karnes, Dimmit, Gonzales, and Zavala Counties, Texas, masterfully located in the core of the Eagle Ford Shale. Additionally, the Karnes acreage includes the Austin Chalk formation, which overlies the Eagle Ford Shale.
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### Strategy Evaluation Summary for MGY
Below is a summary table displaying how MGY measures up against the various criteria in John Neff’s Low PE Investor strategy. Note that not all criteria carry equal weight or independence but offer a helpful overview of the stock’s strengths and weaknesses within this investment framework.
| **Criteria** | **Result** |
|———————–|————|
| P/E Ratio | Pass |
| EPS Growth | Pass |
| Future EPS Growth | Fail |
| Sales Growth | Pass |
| Total Return / P/E | Pass |
| Free Cash Flow | Pass |
| EPS Persistence | Fail |
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### Detailed Analysis of Magnolia Oil & Gas Corp (MGY)
Validea’s guru-based analysis highlights MGY’s solid valuation metrics and consistent sales growth, though the company falls short on future EPS growth expectations and EPS persistence. Nevertheless, the strong fundamental base supports the recent upgrade in its overall rating.
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### About John Neff
John Neff was renowned as a highly respected investment manager, trusted by many of his peers to manage their personal funds. Unlike the stereotypical high-profile Wall Street figure, Neff was mild-mannered and low-key. This demeanour was reflected in the Windsor Fund, which he managed for over three decades, describing it as “relatively prosaic, dull, and conservative.”
Despite that characterization, Neff delivered extraordinary results. From 1964 to 1995, he steered the Windsor Fund to an average annual return of **13.7%**, outpacing the S&P 500’s **10.6%** over that period. This 3.1 percentage point annual advantage made a massive difference over time—turning a $10,000 investment into over $564,000 by his retirement, more than double the approximately $233,000 generated by the S&P 500 during the same timeframe.
Given the length of his tenure and scale of assets managed, Neff’s track record is arguably one of the best ever for a large-fund manager.
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### About Validea
Validea is an investment research service that follows the published stock-picking strategies of renowned investment legends. We provide both detailed stock analyses and model portfolios based on gurus who have consistently outperformed the market over the long term, including Warren Buffett, Benjamin Graham, Peter Lynch, and Martin Zweig.
For more information about Validea, please [click here](#).
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*Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of Nasdaq, Inc.*
https://www.nasdaq.com/articles/validea-john-neff-strategy-daily-upgrade-report-10-18-2025
