Validea’s Top Five Technology Stocks Based On Joel Greenblatt – 10/3/2021

The following are the top rated Technology stocks according to Validea’s Earnings Yield Investor model…

The following are the top rated Technology stocks according to Validea’s Earnings Yield Investor model based on the published strategy of Joel Greenblatt. This value model looks for companies with high return on capital and earnings yields.

HP INC (HPQ) is a large-cap value stock in the Computer Hardware industry. The rating according to our strategy based on Joel Greenblatt is 100{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} or above typically indicates that the strategy has some interest in the stock and a score above 90{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} typically indicates strong interest.

Company Description: HP Inc. is a personal computing and other access devices, imaging and printing products, and related technologies, solutions and services to individual consumers, small- and medium-sized businesses (SMBs) and large enterprises, including customers in the government, health and education sectors. Its segments include Personal Systems, Printing and Corporate Investments. The Personal Systems segment offers commercial and consumer desktop and notebook personal computers (PCs), workstations, thin clients, commercial mobility devices, retail point-of-sale (POS) systems, displays and other related accessories, software, support and services. The Printing segment provides consumer and commercial printer hardware, supplies, services and solutions, as well as scanning devices. Printing is also focused on graphics and three-dimensional (3D) imaging solutions. The Corporate Investments segment includes the operations of HP Labs and certain business incubation and investment projects.

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.

EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS

Detailed Analysis of HP INC

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PERION NETWORK LTD (PERI) is a small-cap growth stock in the Computer Services industry. The rating according to our strategy based on Joel Greenblatt is 100{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} or above typically indicates that the strategy has some interest in the stock and a score above 90{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} typically indicates strong interest.

Company Description: Perion Network Ltd is an Israel-based global technology company. It delivers online advertising solutions and search monetization to brands and publishers. It provides data-driven execution, from high-impact ad formats to branded search and a unified social and mobile programmatic platform. Its business solutions include Undertone, Codefuel, MakeMeReach and Smilebox. Undertone’s synchronized digital branding solution delivers creative experiences through cohesive stories to the portfolio of Websites, mobile applications, touchpoints, screens, and platforms. CodeFuel is search solution platform, which allows publishers to create new revenue streams and search experience by bringing monetization to content and application developers. MakeMeReach platform helps advertisers and agencies create, manage and optimize their marketing campaigns on multiple social channels. Smilebox enables people to tell the stories of their lives with customizable eCards, slideshows and invitations.

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.

EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS

Detailed Analysis of PERION NETWORK LTD

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DONNELLEY FINANCIAL SOLUTIONS INC (DFIN) is a small-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Joel Greenblatt is 90{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} or above typically indicates that the strategy has some interest in the stock and a score above 90{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} typically indicates strong interest.

Company Description: Donnelley Financial Solutions Inc is a global risk and compliance solutions company. It provides regulatory filing and deal solutions via its software technology-enabled services and print and distribution solutions to public and private companies, mutual funds and other regulated investment firms, to serve its clients’ regulatory and compliance needs. The Company’s software solutions consist of Venue Virtual Data Room (Venue), ActiveDisclosure, eBrevia and FundSuiteArc. The Company’s tech-enabled services offerings consist of document composition, compliance-related to the United States security and exchange commission (SEC) Electronic Data Gathering, Analysis, and Retrieval (EDGAR) filing services and transaction solutions. Its segments are Capital Markets – Software Solutions (CM-SS), Capital Markets – Compliance and Communications Management (CM-CCM), Investment Companies – Software Solutions (IC-SS), and Investment Companies – Compliance and Communications Management (IC-CCM).

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.

EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS

Detailed Analysis of DONNELLEY FINANCIAL SOLUTIONS INC

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GRAFTECH INTERNATIONAL LTD (EAF) is a mid-cap value stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Joel Greenblatt is 90{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} or above typically indicates that the strategy has some interest in the stock and a score above 90{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} typically indicates strong interest.

Company Description: GrafTech International Ltd (GTI) is a manufacturer of graphite electrodes, products essential to the production of electric arc furnace (EAF) steel and various other ferrous and nonferrous metals. The Company also produces needle coke products, which are the primary raw material needed in the manufacture of graphite electrodes. The Company is manufactures and provides graphite and carbon materials used in the transportation, solar and oil and gas exploration industries. The Company’s operating segments include Industrial Materials, which include graphite electrodes, refractory products and needle coke products, and Engineered Solutions, which includes advanced electronics technologies, advanced graphite materials, advanced composite materials, and advanced materials. The Company has seven product categories: graphite electrodes, refractory products, needle coke products, advanced graphite materials, advanced composite materials, advanced electronics technologies and advanced 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.

EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS

Detailed Analysis of GRAFTECH INTERNATIONAL LTD

Full Guru Analysis for EAF>

Full Factor Report for EAF>

TURTLE BEACH CORP (HEAR) is a small-cap value stock in the Electronic Instr. & Controls industry. The rating according to our strategy based on Joel Greenblatt is 90{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} or above typically indicates that the strategy has some interest in the stock and a score above 90{1ecc11bb1501b786f489293ac2ac25fb54683d686574816a94d14a51901cfb17} typically indicates strong interest.

Company Description: Turtle Beach Corporation (Turtle Beach) is an audio and gaming technology company. Turtle Beach is engaged in developing, commercializing, and marketing products under Turtle Beach, ROCCAT and Neat Microphones brands. Turtle Beach is a provider of headset solutions for use across multiple platforms, including video game and entertainment consoles, handheld consoles, personal computers (PC), tablets and mobile devices. Turtle Beach under its ROCCAT brand provides keyboards, mice, headsets, mousepads, and other computer accessories. Turtle Beach designs and markets a gaming headsets and audio accessories for Xbox, PlayStation, personal computer (PC), Mac, and mobile/tablet devices. Turtle Beach products are distributed internationally in North America, South America, Europe, the Middle East, Africa, Australia, and Asia.

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.

EARNINGS YIELD: NEUTRAL
RETURN ON TANGIBLE CAPITAL: NEUTRAL
FINAL RANKING: PASS

Detailed Analysis of TURTLE BEACH CORP

Full Guru Analysis for HEAR>

Full Factor Report for HEAR>

More details on Validea’s Joel Greenblatt strategy

Joel Greenblatt Stock Ideas

About Joel Greenblatt: In his 2005 bestseller The Little Book That Beats The Market, hedge fund manager Joel Greenblatt laid out a stunningly simple way to beat the market using two — and only two — fundamental variables. The “Magic Formula,” as he called it, produced back-tested returns of 30.8 percent per year from 1988 through 2004, more than doubling the S&P 500’s 12.4 percent return during that time. Greenblatt also produced exceptional returns as managing partner at Gotham Capital, a New York City-based hedge fund he founded. The firm averaged a remarkable 40 percent annualized return over more than two decades.

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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