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Validea's Top Five Technology Stocks Based On Benjamin Graham - 12/1/2019

The following are the top rated Technology stocks according to Validea's Value Investor model based on the published strategy of Benjamin Graham. This deep value methodology screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth.

BAIDU INC (ADR) (BIDU) is a large-cap stock in the Computer Services industry. The rating according to our strategy based on Benjamin Graham is 86% 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: Baidu, Inc. is a Chinese language Internet search provider. The Company offers a Chinese language search platform on its Baidu.com Website that enables users to find information online, including Webpages, news, images, documents and multimedia files, through links provided on its Website. In addition to serving individual Internet search users, the Company provides a platform for businesses to reach customers. Its business consists of three segments: search services, transaction services and iQiyi. Search services are keyword-based marketing services targeted at and triggered by Internet users' search queries, which mainly include its pay-for-performance (P4P) services and other online marketing services. Its transaction services include Baidu Nuomi, Baidu Takeout Delivery, Baidu Maps, Baidu Connect, Baidu Wallet and others. iQiyi is an online video platform with a content library that includes licensed movies, television series, cartoons, variety shows and other programs.

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.

SECTOR: FAIL
SALES: PASS
CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS
PRICE/BOOK RATIO: PASS

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

ARROW ELECTRONICS, INC. (ARW) is a mid-cap stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Arrow Electronics, Inc. is a provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The Company has a portfolio of product offerings available from various electronic components and enterprise computing solutions suppliers. The Company's segments include the global components business; the global enterprise computing solutions (ECS) business, and corporate business segment. It distributes electronic components to original equipment manufacturers and contract manufacturers through its global components business segment. Through global ECS business segment, it provides enterprise computing solutions to value-added resellers. The Global components segment markets and distributes electronic components and provides a range of value-added capabilities. Global ECS' portfolio of computing solutions includes datacenter, cloud, security, and analytics solutions.

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.

SECTOR: FAIL SECTOR: FAIL
SALES: PASS SALES: PASS
CURRENT RATIO: PASS CURRENT RATIO: FAIL
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS

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

HOLLYSYS AUTOMATION TECHNOLOGIES LTD (HOLI) is a small-cap value stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Hollysys Automation Technologies Ltd. is a provider of automation and control technologies, and products. The Company's segments include Industrial Automation (IA), Rail Transportation (rail), Mechanical and Electrical (M&E), and Miscellaneous. Its technologies are applied through its industrial automation solution suite, including the Distributed Control Systems, Programmable Logic Controller, Real-time Management Information System, HolliAS Asset Management System, Operator Training System, Batch Application Package, Advanced Process Control Package (HolliAS APC Suite), Safety Instrumentation System (SIS), railway signaling system of Train Control Center, Automatic Train Protection, Subway Supervisory and Control platform, nuclear power non-safety automation and control system HolliAs-NMS DCS and other products. It serves customers in the industrial, railway, subway, nuclear power, and mechanical and electronic industries in China, Southeast Asia, India, Europe and the Middle East.

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.

SECTOR: FAIL SECTOR: FAIL SECTOR: FAIL
SALES: PASS SALES: PASS SALES: FAIL
CURRENT RATIO: PASS CURRENT RATIO: FAIL CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS

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

MICRON TECHNOLOGY, INC. (MU) is a large-cap value stock in the Semiconductors industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Micron Technology, Inc. is engaged in semiconductor systems. The Company's portfolio of memory technologies, including dynamic random-access memory (DRAM), negative-AND (NAND) Flash and NOR Flash are the basis for solid-state drives, modules, multi-chip packages and other system solutions. Its business segments include Compute and Networking Business Unit (CNBU), which includes memory products sold into compute, networking, graphics and cloud server markets; Mobile Business Unit (MBU), which includes memory products sold into smartphone, tablet and other mobile-device markets; Storage Business Unit (SBU), which includes memory products sold into enterprise, client, cloud and removable storage markets, and SBU also includes products sold to Intel through its Intel/Micron Flash Technology (IMFT) joint venture, and Embedded Business Unit (EBU), which includes memory products sold into automotive, industrial, connected home and consumer electronics markets.

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.

SECTOR: FAIL SECTOR: FAIL SECTOR: FAIL SECTOR: FAIL
SALES: PASS SALES: PASS SALES: FAIL SALES: PASS
CURRENT RATIO: PASS CURRENT RATIO: FAIL CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: FAIL
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS

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

QUDIAN INC - ADR (QD) is a small-cap value stock in the Software & Programming industry. The rating according to our strategy based on Benjamin Graham is 71% 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: Qudian Inc. provides cash credit products, which provide funds in digital form, and merchandise credit products. The Company operates through an online platform and all the transaction are facilitated through mobile devices. Borrowers can apply for credit on their mobile phones and receive approval within a few seconds. Approved borrowers are then able to draw down on their cash credit with cash disbursed immediately into their Alipay accounts in digital form. It also offers merchandise credit products to finance borrowers' direct purchase of merchandise offered on its marketplace on installment basis. Its marketplace connects consumers with merchandise suppliers. It offers 14 categories of merchandise from over 1,000 brands covering primarily consumer electronics, home appliances, watches and accessories, sports and outdoor merchandise and luggage.

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.

SECTOR: FAIL SECTOR: FAIL SECTOR: FAIL SECTOR: FAIL SECTOR: FAIL
SALES: PASS SALES: PASS SALES: FAIL SALES: PASS SALES: PASS
CURRENT RATIO: PASS CURRENT RATIO: FAIL CURRENT RATIO: PASS CURRENT RATIO: PASS CURRENT RATIO: PASS
LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: PASS
LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: PASS LONG-TERM EPS GROWTH: FAIL LONG-TERM EPS GROWTH: FAIL
P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS P/E RATIO: PASS
PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS PRICE/BOOK RATIO: PASS

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

Since its inception, Validea's strategy based on Benjamin Graham has returned 455.03% vs. 215.97% for the S&P 500. For more details on this strategy, click here

About Benjamin Graham: The late Benjamin Graham may be the oldest of the gurus we follow, but his impact on the investing world has lasted for decades after his death in 1976. Known as both the "Father of Value Investing" and the founder of the entire field of security analysis, Graham mentored several of history's greatest investors -- including Warren Buffett -- and inspired a slew of others, including John Templeton, Mario Gabelli, and another of Validea's gurus, John Neff. Graham built his fortune and reputation after living through some extremely difficult times, including both the Great Depression and his own family's financial woes following his father's death when Benjamin was a young man. His investment firm posted per annum returns of about 20 percent from 1936 to 1956, far outpacing the 12.2 percent average return for the market during that time.

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.

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BIDU ARW HOLI MU QD

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