The following are the top rated Technology stocks according to Validea's Contrarian Investor model based on the published strategy of David Dreman. This contrarian strategy finds the most unpopular mid- and large-cap stocks in the market and looks for improving fundamentals.
UNITED MICROELECTRONICS CORP (ADR) (UMC) is a large-cap value stock in the Semiconductors industry. The rating according to our strategy based on David Dreman is 99% 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: United Microelectronics Corp is a global semiconductor foundry. The Company provides integrated circuit (IC) production for applications spanning every sector of the electronics industry. The Company operates through two segments. The Wafer Fabrication segment is mainly engaged in the manufacture of chips to the design specifications of its customers by using its own processes and techniques. The New Business segment is engaged in the research, development, manufacture and provision of solar energy. The Company is engaged in the maintenance of a customer base across various industries, including communication, consumer electronics, computer, memory, new generation light-emitting diode (LED) and others, while focusing on manufacturing for applications, including networking, telecommunications, Internet, multimedia, personal computers (PCs) and graphics.
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.
| MARKET CAP: | PASS |
| EARNINGS TREND: | PASS |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | PASS |
| P/E RATIO: | PASS |
| PRICE/CASH FLOW (P/CF) RATIO: | PASS |
| PRICE/BOOK (P/B) VALUE: | FAIL |
| PRICE/DIVIDEND (P/D) RATIO: | PASS |
| CURRENT RATIO: | PASS |
| PAYOUT RATIO: | PASS |
| RETURN ON EQUITY: | PASS |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | PASS |
| LOOK AT THE TOTAL DEBT/EQUITY: | PASS |
Detailed Analysis of UNITED MICROELECTRONICS CORP (ADR)
DAQO NEW ENERGY CORP (ADR) (DQ) is a mid-cap value stock in the Semiconductors industry. The rating according to our strategy based on David Dreman is 90% 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: Daqo New Energy Corp. is a polysilicon manufacturer. The Company utilizes the chemical vapor deposition process, or the modified Siemens process, to produce polysilicon. The Company's segments include Polysilicon and Wafer. The Company manufactures and sells polysilicon to photovoltaic product manufacturers, whereby the polysilicon is processed into ingots, wafers, cells and modules for solar power solutions. The Company offers ready-to-use polysilicon, packaged to meet crucible stacking, pulling and solidification needs. The Company offers wafers through its downstream photovoltaic product manufacturing business. The Company also provides wafer original equipment manufacturer (OEM) service to external customers through tolling agreements by processing polysilicon to produce ingot and wafer. Its annual capacity for polysilicon is approximately 12,150 metric tons (MT) in Xinjiang. The Company's wafer manufacturing annual capacity is approximately 90 million pieces.
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.
| MARKET CAP: | PASS |
| EARNINGS TREND: | PASS |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | PASS |
| P/E RATIO: | PASS |
| PRICE/CASH FLOW (P/CF) RATIO: | PASS |
| PRICE/BOOK (P/B) VALUE: | FAIL |
| PRICE/DIVIDEND (P/D) RATIO: | FAIL |
| CURRENT RATIO: | PASS |
| PAYOUT RATIO: | PASS |
| RETURN ON EQUITY: | PASS |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | FAIL |
| LOOK AT THE TOTAL DEBT/EQUITY: | PASS |
Detailed Analysis of DAQO NEW ENERGY CORP (ADR)
MICRON TECHNOLOGY, INC. (MU) is a large-cap value stock in the Semiconductors industry. The rating according to our strategy based on David Dreman is 83% 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 a provider of memory and storage solutions. The Company's product portfolio includes dynamic random-access memory (DRAM), negative-AND (NAND), three-dimensional (3D) XPoint memory, and NOR, solid-state drives, graphics and high bandwidth memory (HBM), managed NAND and multichip packages. Its brands include Micron and Crucial. The Company's segments include Compute and Networking Business Unit (CNBU) includes memory products sold into client, cloud server, enterprise, graphics, and networking markets; Mobile Business Unit (MBU) includes memory and storage products sold into smartphone and other mobile-device markets; Storage Business Unit (SBU) includes solid state drives (SSDs) and component-level solutions sold into enterprise and cloud, client, and consumer storage markets and other discrete storage products; Embedded Business Unit (EBU) includes memory and storage products sold into automotive, industrial, and consumer 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.
| MARKET CAP: | PASS |
| EARNINGS TREND: | PASS |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | PASS |
| P/E RATIO: | PASS |
| PRICE/CASH FLOW (P/CF) RATIO: | PASS |
| PRICE/BOOK (P/B) VALUE: | FAIL |
| PRICE/DIVIDEND (P/D) RATIO: | FAIL |
| CURRENT RATIO: | PASS |
| PAYOUT RATIO: | FAIL |
| RETURN ON EQUITY: | PASS |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | FAIL |
| LOOK AT THE TOTAL DEBT/EQUITY: | PASS |
Detailed Analysis of MICRON TECHNOLOGY, INC.
ARROW ELECTRONICS, INC. (ARW) is a mid-cap value stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on David Dreman is 76% 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. Its segments include the global components business and the global enterprise computing solutions (ECS) business. The global components business segment distributes electronic components to original equipment manufacturers and contract manufacturers. The ECS business segment provides enterprise computing solutions to value-added resellers and managed service providers. The Global ECS portfolio of computing solutions includes cloud and security. Global ECS provides cloud solutions to businesses through ArrowSphere, a cloud marketplace and management platform. It maintains over 245 sales facilities and 43 distribution and value-added centers, serving over 90 countries. Both its segments have operations in each of the three electronics markets; the Americas; Europe, Middle East, and Africa, and Asia-Pacific regions.
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.
| MARKET CAP: | PASS |
| EARNINGS TREND: | PASS |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | PASS |
| P/E RATIO: | PASS |
| PRICE/CASH FLOW (P/CF) RATIO: | PASS |
| PRICE/BOOK (P/B) VALUE: | FAIL |
| PRICE/DIVIDEND (P/D) RATIO: | FAIL |
| CURRENT RATIO: | FAIL |
| PAYOUT RATIO: | PASS |
| RETURN ON EQUITY: | PASS |
| PRE-TAX PROFIT MARGINS: | FAIL |
| YIELD: | FAIL |
| LOOK AT THE TOTAL DEBT/EQUITY: | FAIL |
Detailed Analysis of ARROW ELECTRONICS, INC.
CANAAN INC - ADR (CAN) is a small-cap value stock in the Computer Hardware industry. The rating according to our strategy based on David Dreman is 76% 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: Canaan Inc provides supercomputing solutions through proprietary high-performance computing ASICs (Application Specific Integrated Circuit). The Company provides a holistic AI (Artificial Intelligence) solution to customers, including AI chips, algorithm development and optimization, hardware module, end-product and software 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.
| MARKET CAP: | FAIL |
| EARNINGS TREND: | PASS |
| EPS GROWTH RATE IN THE IMMEDIATE PAST AND FUTURE: | PASS |
| P/E RATIO: | PASS |
| PRICE/CASH FLOW (P/CF) RATIO: | FAIL |
| PRICE/BOOK (P/B) VALUE: | PASS |
| PRICE/DIVIDEND (P/D) RATIO: | FAIL |
| CURRENT RATIO: | PASS |
| PAYOUT RATIO: | PASS |
| RETURN ON EQUITY: | PASS |
| PRE-TAX PROFIT MARGINS: | PASS |
| YIELD: | FAIL |
| LOOK AT THE TOTAL DEBT/EQUITY: | PASS |
Detailed Analysis of CANAAN INC - ADR
More details on Validea's David Dreman strategy
About David Dreman: Dreman's Kemper-Dreman High Return Fund was one of the best-performing mutual funds ever, ranking as the best of 255 funds in its peer groups from 1988 to 1998, according to Lipper Analytical Services. At the time Dreman published Contrarian Investment Strategies: The Next Generation, the fund had been ranked number one in more time periods than any of the 3,175 funds in Lipper's database. In addition to managing money, Dreman is also a longtime Forbes magazine columnist.
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.
