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Validea's Top Five Technology Stocks Based On Joseph Piotroski - 8/2/2020

The following are the top rated Technology stocks according to Validea's Book/Market Investor model based on the published strategy of Joseph Piotroski. This value-quant strategy screens for high book-to-market stocks, and then separates out financially sound firms by looking at a host of improving financial criteria.

AVNET, INC. (AVT) is a mid-cap growth stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Joseph Piotroski 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: Avnet, Inc. is a distributor of electronic components, enterprise computer, networking and storage products and software, and embedded subsystems. The Company operates through Electronics Marketing (EM) segment. The EM segment markets and sells semiconductors; interconnect, passive and electromechanical devices (IP&E), and embedded products to a customer base serving various end markets. The Company creates a link in the technology supply chain that connects electronic component and computer product manufacturers and software developers with a customer base of original equipment manufacturers (OEMs), electronic manufacturing services (EMS) providers, original design manufacturers (ODMs), systems integrators (SIs), independent software vendors (ISVs) and value-added resellers (VARs). The Company distributes electronic components, computer products and software, as received from its suppliers or through a customized solution, and offers assembly and other 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.

BOOK/MARKET RATIO:PASS
RETURN ON ASSETS:PASS
CHANGE IN RETURN ON ASSETS:PASS
CASH FLOW FROM OPERATIONS:PASS
CASH COMPARED TO NET INCOME:PASS
CHANGE IN LONG TERM DEBT/ASSETSFAIL
CHANGE IN CURRENT RATIO:PASS
CHANGE IN SHARES OUTSTANDING:PASS
CHANGE IN GROSS MARGIN:FAIL
CHANGE IN ASSET TURNOVER:PASS

Detailed Analysis of AVNET, INC.

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JINKOSOLAR HOLDING CO., LTD (ADR) (JKS) is a small-cap value stock in the Semiconductors industry. The rating according to our strategy based on Joseph Piotroski 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: JinkoSolar Holding Co., Ltd. operates in the photovoltaic (PV) industry. The Company has built a vertically integrated solar power product value chain, from recovering silicon materials to manufacturing solar modules and solar power generation. The Company's segments include the manufacturing segment and the solar power projects segment. The manufacturing segment comprises its vertically integrated solar power product manufacturing business, under which the Company manufactures silicon ingots, wafers, cells and solar modules. The solar power projects segment comprises the downstream solar power generation, construction and operation business, including power generation; engineering, procurement and construction (EPC), and connecting solar power projects to the grid, and operation and maintenance (O&M) of the solar power projects. The Company sells its solar modules under the JinkoSolar brand. Its services include solar system EPC and processing 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.

BOOK/MARKET RATIO:PASS
RETURN ON ASSETS:PASS
CHANGE IN RETURN ON ASSETS:PASS
CASH FLOW FROM OPERATIONS:PASS
CASH COMPARED TO NET INCOME:PASS
CHANGE IN LONG TERM DEBT/ASSETSPASS
CHANGE IN CURRENT RATIO:PASS
CHANGE IN SHARES OUTSTANDING:FAIL
CHANGE IN GROSS MARGIN:PASS
CHANGE IN ASSET TURNOVER:FAIL

Detailed Analysis of JINKOSOLAR HOLDING CO., LTD (ADR)

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XEROX HOLDINGS CORP (XRX) is a mid-cap value stock in the Computer Services industry. The rating according to our strategy based on Joseph Piotroski 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: Xerox Holdings Corporation is a provider of digital print technology and related solutions. The Company has capabilities in imaging and printing, data analytics, and the development of secure and automated solutions to help customers improve productivity. The Company's primary offerings span three main areas: Managed Document Services, Workplace Solutions and Graphic Communications. Its Managed Document Services offerings help customers, ranging from small businesses to global enterprises, optimize their printing and related document workflow and business processes. Managed Document Services includes the document outsourcing business, as well as a set of communication and marketing solutions. The Company's Workplace Solutions and Graphic Communications products and solutions support the work processes of its customers by providing them with printing and communications infrastructure.

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.

BOOK/MARKET RATIO:PASS
RETURN ON ASSETS:PASS
CHANGE IN RETURN ON ASSETS:PASS
CASH FLOW FROM OPERATIONS:PASS
CASH COMPARED TO NET INCOME:PASS
CHANGE IN LONG TERM DEBT/ASSETSPASS
CHANGE IN CURRENT RATIO:PASS
CHANGE IN SHARES OUTSTANDING:PASS
CHANGE IN GROSS MARGIN:FAIL
CHANGE IN ASSET TURNOVER:FAIL

Detailed Analysis of XEROX HOLDINGS CORP

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BENCHMARK ELECTRONICS, INC. (BHE) is a small-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Joseph Piotroski 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: Benchmark Electronics, Inc. is a provider of electronic manufacturing services. The Company operates through three segments: the Americas, Asia and Europe. It provides services to original equipment manufacturers of industrial control equipment, including equipment for the aerospace and defense industry; telecommunication equipment; computers and related products for business enterprises; medical devices, and testing and instrumentation products. It offers integrated design and manufacturing services. Its operations consist of over three principal areas: manufacturing and assembly operations, including printed circuit boards assemblies and subsystem assembly, box build and systems integration; precision technology manufacturing, which include precision machining, metal joining, assembly and functional testing, and specialized engineering services, and specialized engineering services, such as product design, printed circuit board layout, prototyping, automation and test development.

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.

BOOK/MARKET RATIO:PASS
RETURN ON ASSETS:PASS
CHANGE IN RETURN ON ASSETS:PASS
CASH FLOW FROM OPERATIONS:PASS
CASH COMPARED TO NET INCOME:PASS
CHANGE IN LONG TERM DEBT/ASSETSPASS
CHANGE IN CURRENT RATIO:FAIL
CHANGE IN SHARES OUTSTANDING:PASS
CHANGE IN GROSS MARGIN:FAIL
CHANGE IN ASSET TURNOVER:FAIL

Detailed Analysis of BENCHMARK ELECTRONICS, INC.

Full Guru Analysis for BHE>

Full Factor Report for BHE>

BITAUTO HLDG LTD (ADR) (BITA) is a small-cap growth stock in the Computer Services industry. The rating according to our strategy based on Joseph Piotroski 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: Bitauto Holdings Limited is a provider of Internet content and marketing services for China's automotive industry. The Company's bitauto.com and taoche.com Websites provide consumers with information on new and used automobile pricing, and promotional information, specifications, reviews and consumer feedback. The Company operates through three segments: advertising business, EP platform business and digital marketing solutions business. The advertising business offers a range of advertising services mainly to automakers through its Websites, as well as mobile applications. The EP platform business provides Web-based and mobile-based integrated digital marketing solutions to automobile customers in China. The digital marketing solutions business provides automakers with digital marketing solutions, including Website creation and maintenance, online public relations, online marketing campaigns and advertising agent 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.

BOOK/MARKET RATIO:PASS
RETURN ON ASSETS:FAIL
CHANGE IN RETURN ON ASSETS:FAIL
CASH FLOW FROM OPERATIONS:PASS
CASH COMPARED TO NET INCOME:PASS
CHANGE IN LONG TERM DEBT/ASSETSPASS
CHANGE IN CURRENT RATIO:PASS
CHANGE IN SHARES OUTSTANDING:FAIL
CHANGE IN GROSS MARGIN:PASS
CHANGE IN ASSET TURNOVER:PASS

Detailed Analysis of BITAUTO HLDG LTD (ADR)

Full Guru Analysis for BITA>

Full Factor Report for BITA>

More details on Validea's Joseph Piotroski strategy

About Joseph Piotroski: Piotroski isn't your typical Wall Street big shot. In fact, he's not even a professional investor. He's a good old numbers-crunching accountant and college professor. But in 2000, shortly after he started teaching at the University of Chicago's Graduate School of Business, Piotroski published a groundbreaking paper in the Journal of Accounting Research entitled "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers". In it, Piotroski laid out an accounting-based stock-selection/shorting method that produced a 23 percent average annual back-tested return from 1976 through 1996 -- more than double the S&P 500's gain during that time. Piotroski's findings were reported in major financial publiations like SmartMoney. Today, he teaches accounting at Stanford University's Graduate School of Business.

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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