The following are the top rated Information Technology stocks according to Validea's Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.
HEWLETT PACKARD ENTERPRISE CO (HPE) is a large-cap growth stock in the Computer Hardware industry. The rating according to our strategy based on Joel Greenblatt is 20% 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: Hewlett Packard Enterprise Company (HPE) is a technology company focused on developing intelligent solutions that allow customers to capture, analyze, and act upon data from edge to cloud. The Company operates through six segments: Compute, High Performance Computing & Artificial Intelligence (HPC & AI), Storage, Intelligent Edge, Financial Services (FS), and Corporate Investments and Other. Its Compute segments includes both general purpose servers for multi-workload computing and workload-optimized servers to deliver performance and value for applications. Its HPC & AI segment offers integrated systems comprised of software and hardware designed to address high-performance computing (HPC), artificial intelligence (AI), data analytics, and transaction processing workloads for customers globally. Intelligent Edge segment offers wired and wireless local area network (LAN), campus and data center switching, software-defined wide-area-network, network security, and associated services.
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.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of HEWLETT PACKARD ENTERPRISE CO
RAPID7 INC (RPD) is a mid-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Joel Greenblatt is 0% 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: Rapid7, Inc. is engaged in advancing security with visibility, analytics, and automation delivered through its Insight Platform. Its Insight Platform solutions include incident detection and response, cloud security, vulnerability risk management, application security, threat intelligence and security orchestration and automation response. It offers its Insight Platform solutions as software-as-a-service products, on a subscription basis. It provides cloud products across the main pillars of Security Operations (SecOps), which include InsightIDR, InsightCloudSec, InsightVM, InsightAppSec and InsightConnect. Its other products include Threat Intelligence, Nexpose, AppSpider and Metasploit. Its professional service offerings include Penetration Testing, Cybersecurity Maturity Assessments, Security and Incident Response Program Development Services, Internet of things (IoT) and Internet Embedded Device testing, as well as Threat Modeling, TableTop Exercises and Incident Response services.
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.
Detailed Analysis of RAPID7 INC
SABRE CORP (SABR) is a small-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Joel Greenblatt is 0% 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: Sabre Corporation is a software and technology company. It connects travel suppliers with travel buyers in a travel marketplace. It operates through two segments, namely Travel Solutions and Hospitality Solutions. Its Travel Solutions segment provides global travel solutions for travel suppliers and travel buyers through a business-to-business travel marketplace consisting of its global distribution system (GDS) and a set of solutions that integrate with its GDS to add value for travel suppliers and travel buyers. Its Travel Solutions segment also offers a portfolio of software technology products and solutions, through software-as-a-service and hosted delivery model, to airlines and other travel suppliers and provides industry software solutions that help its customers. The Company's Hospitality Solutions segment provides software and solutions, through SaaS and hosted delivery models, to hoteliers around the world. The Company serves approximately 42,000 properties in 177 countries.
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.
Detailed Analysis of SABRE CORP
FIVE9 INC (FIVN) is a mid-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Joel Greenblatt is 0% 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: Five9 Inc. (Five9) is a provider of cloud software for contact centers. The Company's purpose-built Virtual Contact Center (VCC) cloud platform delivers a suite of applications that enable the breadth of contact center-related customer service, sales, and marketing functions. Five9's solution, which consists of its VCC cloud platform and applications, allows simultaneous management and optimization of customer interactions across voice, chat, e-mail, Web, social media and mobile channels, either directly or through its application programming interfaces (APIs). Five9's VCC cloud platform matches each customer interaction with an appropriate agent resource and delivers relevant customer data to the agent in real-time through integration with enterprise applications, such as customer relationship management software, to optimize the customer experience and agent productivity. It provides its solution through a software as a service (SaaS) business model with recurring subscriptions.
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.
Detailed Analysis of FIVE9 INC
BOOZ ALLEN HAMILTON HOLDING CORPORATION (BAH) is a large-cap growth stock in the Business Services industry. The rating according to our strategy based on Joel Greenblatt is 0% 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: Booz Allen Hamilton Holding Corporation is a holding company. The Company provides management and technology consulting, analytics, engineering, digital solutions, mission operations, and cyber services to United States (US) and international governments, major corporations, and not-for-profit organizations. Its analytics service offering focuses on providing solutions the areas of artificial intelligence (AI), such as machine learning (ML), deep learning, data science, such as data engineering and predictive modeling, automation and decision analytics, and emerging areas, such as quantum computing. Its consulting service offering focuses on the talent and expertise needed to solve client problems and develop mission-oriented solutions for specific domains, business strategies, human capital, and operations through new approaches. Its engineering solutions deliver engineering services and solutions to define, develop, implement, sustain, and modernize complex physical 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.
| EARNINGS YIELD: | NEUTRAL |
| RETURN ON TANGIBLE CAPITAL: | NEUTRAL |
| FINAL RANKING: | FAIL |
Detailed Analysis of BOOZ ALLEN HAMILTON HOLDING CORPORATION
About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two -- and only two -- fundamental variables. The "Magic Formula," as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500's 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.
About Validea: Validea is aninvestment researchservice 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.
