Validea’s Top Five Technology Stocks Based On Joseph Piotroski – 12/4/2022
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.
FOSSIL GROUP INC (FOSL) is a small-cap growth stock in the Scientific & Technical Instr. industry. The rating according to our strategy based on Joseph Piotroski 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: Fossil Group, Inc. is a design, marketing and distribution company that specializes in consumer fashion accessories. The Company offers line of men’s and women’s fashion traditional watches, smartwatches, jewelry, handbags, small leather goods, belts and sunglasses. The Company’s segments include Americas, Europe and Asia. The Americas is comprised of sales from its operations in the United States, Canada and Latin America. The Europe segment is comprised of sales to customers based in European countries, the Middle East and Africa. The Asia segment is comprised of sales to customers based in Australia, China, India, Indonesia, Japan, Malaysia, New Zealand, Singapore, South Korea and Thailand. The Company’s owned brands include FOSSIL, SKAGEN, MICHELE, RELIC and ZODIAC and licensed brands ARMANI EXCHANGE, DIESEL, DKNY, EMPORIO ARMANI, KATE SPADE NEW YORK, MICHAEL KORS, PUMA, and TORY BURCH. Its products are distributed through wholesale, retail stores, commercial Website, and others.
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/ASSETS | PASS |
| CHANGE IN CURRENT RATIO: | PASS |
| CHANGE IN SHARES OUTSTANDING: | FAIL |
| CHANGE IN GROSS MARGIN: | PASS |
| CHANGE IN ASSET TURNOVER: | PASS |
Detailed Analysis of FOSSIL GROUP INC
KYOCERA CORP (ADR) (KYOCY) is a large-cap growth stock in the Computer Hardware industry. The rating according to our strategy based on Joseph Piotroski 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: KYOCERA CORPORATION is mainly engaged in the development, manufacture and sale of automotive parts, semiconductor-related parts and electronic parts. The Company operates in six business segments. Industrial and Automotive Parts segment develops, manufactures and sells fine ceramic parts, automotive parts, liquid crystal displays and machine tools. Semiconductor-Related Parts segment develops, manufactures and sells ceramic packages and organic multilayer packages and boards. Electronic Device segment develops, manufactures and sells capacitors, crystal parts, connectors, and others. Communications segment develops, manufactures and sells mobile phones and communication modules, and provides information and communication services. Document Solutions segment is conducted printers, compound machines, document solutions and supply products. Life & Environment segment develops, manufactures and sells solar power system, medical equipment, jewelry and ceramic knives.
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/ASSETS | PASS |
| CHANGE IN CURRENT RATIO: | FAIL |
| CHANGE IN SHARES OUTSTANDING: | PASS |
| CHANGE IN GROSS MARGIN: | PASS |
| CHANGE IN ASSET TURNOVER: | PASS |
Detailed Analysis of KYOCERA CORP (ADR)
LG DISPLAY CO LTD (ADR) (LPL) is a mid-cap growth stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Joseph Piotroski 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: LG Display Co Ltd is a Korea-based company principally engaged in the manufacture and sale of display panels. The Company produces and sells display panels for televisions (TVs), smart phones, monitors, notebooks and tablets. The Company holds liquid crystal display (LCD) and organic light emitting diodes (OLED) technology patents. In addition, the Company manufactures raw materials.
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/ASSETS | PASS |
| CHANGE IN CURRENT RATIO: | FAIL |
| CHANGE IN SHARES OUTSTANDING: | PASS |
| CHANGE IN GROSS MARGIN: | PASS |
| CHANGE IN ASSET TURNOVER: | PASS |
Detailed Analysis of LG DISPLAY CO LTD (ADR)
MULTIPLAN CORP (MPLN) is a small-cap value stock in the Software & Programming industry. The rating according to our strategy based on Joseph Piotroski 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: MultiPlan Corporation is a provider of data analytics and technology-enabled solutions to the United States healthcare industry. The Company, through its operating subsidiary, MultiPlan, Inc., offers three categories of services: Analytics-Based Services, Network-Based Services, and Payment and Revenue Integrity Services. Analytics-Based Services include data-driven algorithms, which detect claims over-charges and either negotiate or recommend fair reimbursement using a variety of data sources and pricing algorithms. Network-Based Services include contracted discounts with healthcare providers to form independent preferred provider organizations in the United States with approximately 1.2 million healthcare providers under contract, as well as outsourced network development and/or management services. Payment and Revenue Integrity Services include data, technology and clinical expertise deployed to identify and remove improper and unnecessary charges before or after claims are paid.
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/ASSETS | FAIL |
| CHANGE IN CURRENT RATIO: | PASS |
| CHANGE IN SHARES OUTSTANDING: | PASS |
| CHANGE IN GROSS MARGIN: | PASS |
| CHANGE IN ASSET TURNOVER: | PASS |
Detailed Analysis of MULTIPLAN CORP
ECHOSTAR CORP (SATS) is a small-cap growth stock in the Communications Equipment 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: EchoStar Corporation is a holding company. The Company operates through two segments: Hughes and EchoStar Satellite Services (ESS segment). Its Hughes segment is engaged in both networking technologies and services. It provides broadband satellite technologies and broadband Internet products and services to consumer customers. It provides broadband network technologies, managed services, equipment, hardware, satellite services and communications solutions to government and enterprise customers. It also designs, provides and install gateway and terminal equipment to customers for other satellite systems. Its ESS segment provides satellite services on a full-time and/or occasional-use basis to United States government service providers, Internet service providers, broadcast news organizations, content providers and private enterprise customers. It operates its ESS business using primarily the EchoStar IX satellite and the EchoStar 105/SES-11 satellite and related 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/ASSETS | FAIL |
| CHANGE IN CURRENT RATIO: | PASS |
| CHANGE IN SHARES OUTSTANDING: | PASS |
| CHANGE IN GROSS MARGIN: | FAIL |
| CHANGE IN ASSET TURNOVER: | PASS |
Detailed Analysis of ECHOSTAR CORP
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 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.
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