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Validea's Top Five Technology Stocks Based On Kenneth Fisher - 9/2/2018


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The following are the top rated Technology stocks according to Validea's Price/Sales Investor model based on the published strategy of Kenneth Fisher . This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.

CANON INC (ADR) ( CAJ ) is a large-cap growth stock in the Computer Peripherals industry. The rating according to our strategy based on Kenneth Fisher is 80% 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: Canon Inc. (Canon) is a manufacturer of office multifunction devices (MFDs), plain paper copying machines, laser printers, inkjet printers, cameras and lithography equipment. Canon sells its products principally under the Canon brand name and through sales subsidiaries. Each of these subsidiaries is responsible for marketing and distribution to retail dealers in an assigned territory. Canon operates its business in three segments: the Office Business Unit, the Imaging System Business Unit, and the Industry and Others Business Unit. Canon's research and development activities range from basic research to product-oriented research directed at maintaining Canon's technological operations in the marketplace. Canon has manufacturing subsidiaries in a range of countries, including the United States, Germany, France, the Netherlands, Taiwan, China, Malaysia, Thailand, Vietnam and the Philippines.

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.

PRICE/SALES RATIO:PASS
TOTAL DEBT/EQUITY RATIO:PASS
PRICE/RESEARCH RATIO:PASS
PRICE/SALES RATIO:FAIL
LONG-TERM EPS GROWTH RATE:FAIL
FREE CASH PER SHARE:PASS
THREE YEAR AVERAGE NET PROFIT MARGIN:PASS

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

CHANGYOU.COM LTD (ADR) ( CYOU ) is a small-cap growth stock in the Computer Services industry. The rating according to our strategy based on Kenneth Fisher is 80% 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: Changyou.com Limited is an online game developer and operator. The Company is engaged in the development, operation and licensing of online games for personal computers (PCs) and mobile devices. The Company's segments include Online Game segment, which consists primarily of PC games and mobile games; the Platform Channel segment, which consists primarily of online advertising services offered on the 17173.com Website, Internet value-added services (IVAS) offered on the Dolphin Browser and RaidCall and online card and board games offered by MoboTap, and the Cinema Advertising segment, which consists primarily of the acquisition, from operators of movie theaters, and the sale, to advertisers, of pre-film advertising slots, which are advertisements shown before the screening of a movie in a cinema theater. Its online games include a range of genres, including massively multi-player online role-playing games (MMORPGs), third person shooter games (TPSs) and collectible card games (CCGs).

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.

PRICE/SALES RATIO:PASS
TOTAL DEBT/EQUITY RATIO:PASS
PRICE/RESEARCH RATIO:PASS
PRICE/SALES RATIO:FAIL
LONG-TERM EPS GROWTH RATE:FAIL
FREE CASH PER SHARE:PASS
THREE YEAR AVERAGE NET PROFIT MARGIN:PASS

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

DAKTRONICS, INC. ( DAKT ) is a small-cap growth stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Kenneth Fisher is 70% 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: Daktronics, Inc. is a supplier of electronic scoreboards, electronic display systems, digital messaging solutions, software and services for sporting, commercial and transportation applications. The Company operates through five segments: Commercial, Live Events, High School Park and Recreation, Transportation, and International. The Company offers a range of products, from small scoreboards and electronic displays to video display systems, as well as related control, timing and sound systems. It designs, markets, manufactures, installs and services integrated systems displaying real-time data, graphics, animation and video. Its product families include video displays, scoreboards and timing systems, message displays, intelligent transportation systems (ITS) dynamic message signs, space availability displays, audio systems, advertising displays, digit and price displays and digital messaging systems.

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.

PRICE/SALES RATIO:PASS
TOTAL DEBT/EQUITY RATIO:PASS
PRICE/RESEARCH RATIO:PASS
PRICE/SALES RATIO:PASS
LONG-TERM EPS GROWTH RATE:FAIL
FREE CASH PER SHARE:FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN:FAIL

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

NOKIA OYJ (ADR) ( NOK ) is a large-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Kenneth Fisher is 70% 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: Nokia Oyj is a Finland-based company engaged in the network and Internet protocol ( IP ) infrastructure, software, and related services market. The Company's businesses include Nokia Networks and Nokia Technologies. The Company's segments include Ultra Broadband Networks, IP Networks and Applications, and Nokia Technologies. The Ultra Broadband Networks segment comprises Mobile Networks and Fixed Networks operating segments. The IP Networks and Applications segment comprises IP/Optical Networks and Applications & Analytics operating segments. The Applications & Analytics operating segment offers software solutions spanning customer experience management, network operations and management, communications and collaboration, policy and charging, as well as Cloud, Internet of things (IoT), security, and analytics platforms that enable digital services providers and enterprises to accelerate and optimize their customer experience. The Company has Comptel Oyj among its subsidiaries.

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.

PRICE/SALES RATIO:PASS
TOTAL DEBT/EQUITY RATIO:PASS
PRICE/RESEARCH RATIO:PASS
PRICE/SALES RATIO:FAIL
LONG-TERM EPS GROWTH RATE:FAIL
FREE CASH PER SHARE:PASS
THREE YEAR AVERAGE NET PROFIT MARGIN:FAIL

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

SOHU.COM LTD - ADR (SOHU) is a small-cap growth stock in the Computer Services industry. The rating according to our strategy based on Kenneth Fisher is 70% 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: SOHU.COM LTD is a China-based online media, search and game service company principally engaged in the provision of online products and services on personal computers (PCs) and mobile devices. The Company mainly operates its businesses through three segments, including the Sohu segment, the Sogou segment and the Changyou segment. The Sohu segment's main business is the brand advertising business, which offers to users, over Sohu's matrices of Chinese language online media, various content, products and services across multiple Internet-enabled devices such as PCs, mobile phones and tablets. The Sogou segment is mainly engaged in search and search-related business, including search and search-related advertising services, as well as Internet value-added services (IVAS). The Changyou segment is engaged in online game business; the platform channel business, which consists primarily of online advertising and IVAS; and the cinema advertising business.

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.

PRICE/SALES RATIO:PASS
TOTAL DEBT/EQUITY RATIO:PASS
PRICE/RESEARCH RATIO:PASS
PRICE/SALES RATIO:PASS
LONG-TERM EPS GROWTH RATE:FAIL
FREE CASH PER SHARE:FAIL
THREE YEAR AVERAGE NET PROFIT MARGIN:FAIL

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

Since its inception, Validea's strategy based on Kenneth Fisher has returned 381.28% vs. 190.03% for the S&P 500. For more details on this strategy, click here

About Kenneth Fisher : The son of Philip Fisher, who is considered the "Father of Growth Investing", Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world's foremost experts on 19th century logging. Appropriately, Fisher's firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.

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.



This article appears in: Investing , Stocks
Referenced Symbols: CAJ , CYOU , DAKT , NOK , IP



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