The following are the top rated Information Technology stocks according to Validea's Growth Investor model based on the published strategy of Martin Zweig. This strategy looks for growth stocks with persistent accelerating earnings and sales growth, reasonable valuations and low debt.
GEN DIGITAL INC (GEN) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Martin Zweig is 69% 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: Gen Digital Inc. is a global company. The Company offers a range of Cyber Safety brands, including Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner. Its Cyber Safety portfolio provides protection across three categories in multiple channels and geographies, including security and performance, identity protection, and online privacy. It also offers solutions in digital identity and access management, digital reputation, and restoration support services. It provides real-time protection for PCs, Macs and mobile devices against malware, viruses, adware, ransomware and other online threats. These offerings monitor and block unauthorized traffic from the Internet to the device to help protect private and sensitive information when customers are online. Its Norton and LifeLock identity theft protection solution includes monitoring, alerts and restoration services to help safeguard its customers personal information. Its VPN solutions provides an encrypted data tunnel.
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.
| P/E RATIO: | PASS |
| REVENUE GROWTH IN RELATION TO EPS GROWTH: | PASS |
| SALES GROWTH RATE: | PASS |
| CURRENT QUARTER EARNINGS: | PASS |
| QUARTERLY EARNINGS ONE YEAR AGO: | PASS |
| POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: | PASS |
| EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: | FAIL |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: | PASS |
| EARNINGS PERSISTENCE: | FAIL |
| LONG-TERM EPS GROWTH: | FAIL |
| TOTAL DEBT/EQUITY RATIO: | FAIL |
| INSIDER TRANSACTIONS: | PASS |
Detailed Analysis of GEN DIGITAL INC
HEWLETT PACKARD ENTERPRISE CO (HPE) is a large-cap value stock in the Computer Hardware industry. The rating according to our strategy based on Martin Zweig is 69% 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 is the global edge-to-cloud company. It delivers open and intelligent technology solutions as a service. Its offering includes cloud services, compute, high performance computing & artificial intelligence, intelligent edge, software, and storage. Its segments include Server, Hybrid Cloud, Intelligent Edge, Financial Services, and Corporate Investments and Other. Its Server segment offerings consist of general-purpose servers for multi-workload computing, workload-optimized servers, and integrated systems. Its Hybrid Cloud segment offers a range of cloud-native and hybrid solutions across storage, private cloud and the infrastructure software-as-a-service space. Its Intelligent Edge segment offers wired and wireless local area networks, campus, branch, and data center switching, and others. Its Financial Services segment provides flexible investment solutions, such as leasing, financing, IT consumption, utility programs, and asset management 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.
| P/E RATIO: | PASS |
| REVENUE GROWTH IN RELATION TO EPS GROWTH: | PASS |
| SALES GROWTH RATE: | PASS |
| CURRENT QUARTER EARNINGS: | PASS |
| QUARTERLY EARNINGS ONE YEAR AGO: | PASS |
| POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: | PASS |
| EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: | FAIL |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: | PASS |
| EARNINGS PERSISTENCE: | FAIL |
| LONG-TERM EPS GROWTH: | FAIL |
| TOTAL DEBT/EQUITY RATIO: | FAIL |
| INSIDER TRANSACTIONS: | PASS |
Detailed Analysis of HEWLETT PACKARD ENTERPRISE CO
MKS INSTRUMENTS INC (MKSI) is a mid-cap growth stock in the Scientific & Technical Instr. industry. The rating according to our strategy based on Martin Zweig is 69% 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: MKS Instruments, Inc. is engaged in delivering technology solutions. The Company's segments include Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Materials Solutions Division (MSD). The VSD segment delivers foundational technology solutions to edge semiconductor manufacturing, electronics and packaging and specialty industrial applications. VSD products are derived from its core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, and vacuum technology. The PSD segment provides a range of instruments, components, and subsystems for semiconductor manufacturing, electronics and packaging and specialty industrial applications. The MSD segment develops process and manufacturing technologies for advanced surface modification, electroless and electrolytic plating, and surface finishing.
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.
| P/E RATIO: | PASS |
| REVENUE GROWTH IN RELATION TO EPS GROWTH: | PASS |
| SALES GROWTH RATE: | PASS |
| CURRENT QUARTER EARNINGS: | PASS |
| QUARTERLY EARNINGS ONE YEAR AGO: | FAIL |
| POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: | PASS |
| EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: | PASS |
| EARNINGS PERSISTENCE: | FAIL |
| LONG-TERM EPS GROWTH: | FAIL |
| TOTAL DEBT/EQUITY RATIO: | FAIL |
| INSIDER TRANSACTIONS: | PASS |
Detailed Analysis of MKS INSTRUMENTS INC
FISERV INC (FI) is a large-cap growth stock in the Computer Services industry. The rating according to our strategy based on Martin Zweig is 62% 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: Fiserv, Inc. is a global provider of payments and financial services technology solutions. Its segments include Merchant Solutions (Merchant) and Financial Solutions (Financial). The businesses in its Merchant segment provide commerce-enabling products and services to companies of all sizes around the world. These products and services include merchant acquiring and digital commerce services; mobile payment services; security and fraud protection solutions; stored-value solutions; software-as-a-service; POS devices; and pay-by-bank solutions. The business lines in its Merchant segment consist of small business, enterprise, and processing. The businesses in its Financial segment provide products and services to financial institutions, corporate and public sector clients across the world, enabling the processing of customer loan and deposit accounts, digital payments and card transactions. The business lines in its Financial segment consist of digital payments, issuing, and banking.
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.
| P/E RATIO: | PASS |
| REVENUE GROWTH IN RELATION TO EPS GROWTH: | FAIL |
| SALES GROWTH RATE: | FAIL |
| CURRENT QUARTER EARNINGS: | PASS |
| QUARTERLY EARNINGS ONE YEAR AGO: | PASS |
| POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: | PASS |
| EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: | FAIL |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: | FAIL |
| EARNINGS PERSISTENCE: | PASS |
| LONG-TERM EPS GROWTH: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| INSIDER TRANSACTIONS: | PASS |
Detailed Analysis of FISERV INC
DIGI INTERNATIONAL INC (DGII) is a small-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Martin Zweig is 62% 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: Digi International Inc. is a global provider of Internet of Things (IoT) connectivity products, services, and solutions. The Company helps its customers deploy, monitor and manage critical communications infrastructures. Its segments include IoT Products and Services, and IoT Solutions. The IoT Products and Services segment offers products and services that help original equipment manufacturers as well as enterprise and government customers create and deploy secure IoT connectivity solutions. These include embedded and wireless modules, console servers, enterprise, and industrial routers as well as other infrastructure management equipment. The Company also provides its customers with a device management platform as well as other professional services. The IoT Solutions segment consists of SmartSense by Digi business and managed network-as-a-service business. It offers wireless temperature and other condition-based monitoring services as well as employee task management 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.
| P/E RATIO: | PASS |
| REVENUE GROWTH IN RELATION TO EPS GROWTH: | FAIL |
| SALES GROWTH RATE: | PASS |
| CURRENT QUARTER EARNINGS: | PASS |
| QUARTERLY EARNINGS ONE YEAR AGO: | FAIL |
| POSITIVE EARNINGS GROWTH RATE FOR CURRENT QUARTER: | PASS |
| EARNINGS GROWTH RATE FOR THE PAST SEVERAL QUARTERS: | FAIL |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN PRIOR 3 QUARTERS: | PASS |
| EPS GROWTH FOR CURRENT QUARTER MUST BE GREATER THAN THE HISTORICAL GROWTH RATE: | PASS |
| EARNINGS PERSISTENCE: | FAIL |
| LONG-TERM EPS GROWTH: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| INSIDER TRANSACTIONS: | PASS |
Detailed Analysis of DIGI INTERNATIONAL INC
About Martin Zweig: During the 15 years that it was monitored, Zweig's stock recommendation newsletter returned an average of 15.9 percent per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest. Zweig has managed both mutual and hedge funds during his career, and he's put the fortune he's compiled to some interesting uses. He has owned what Forbes reported was the most expensive apartment in New York, a $70 million penthouse that sits atop Manhattan's Pierre Hotel, and he is a collector of all sorts of pop culture and historical memorabilia -- among his purchases are the gun used by Clint Eastwood in "Dirty Harry", a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to those he'd seen at a nearby gas station while growing up in Cleveland, according to published reports.
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.
