Top Rated IT Stocks Based on Joel Greenblatt's Strategy

A report highlights top-rated IT stocks according to Joel Greenblatt's earnings yield model. Notably, Ituran Location and Control Ltd. and Maximus Inc. received high ratings, while Leidos Holdings Inc. and NetApp Inc. fell short, indicating varying investment opportunities in the technology sector.

Date: 29-11-2024

AI Rating: 5

The report provides insights into the top-rated Information Technology stocks assessed through Joel Greenblatt's Earnings Yield Investor model, emphasizing the fundamental strength and valuation of these companies.

Ituran Location and Control Ltd. (ITRN): Scoring 90%, ITRN stands out with strong interest from the strategy based on its underlying fundamentals. The analysis for ITRN shows neutral earnings yield and return on tangible capital, with a final ranking of pass, suggesting a stable investment outlook.

Maximus Inc. (MMS): Similar to ITRN, MMS also achieved a 90% rating, indicating robust potential based on the same strategy. Its earnings yield and return on tangible capital are marked as neutral, and it also passed the ranking test, reflecting positive fundamentals.

Leidos Holdings Inc. (LDOS): LDOS received a score of 80%, showcasing moderate interest. However, the final ranking indicated a fail as critical metrics revealed there might be underlying issues affecting its performance potential, despite maintaining neutral earnings yield and return on tangible capital.

NetApp Inc. (NTAP): NTAP scored 60%, which is below the generally accepted threshold for investment interest. The report suggests that while the earnings yield and return on tangible capital are neutral, the failing final ranking indicates potential risks, making it a less attractive investment opportunity.

In summary, ITRN and MMS exhibit strengths, while LDOS and NTAP require caution due to their lower scores and failed rankings. Investors might reconsider their positions in LDOS and NTAP, assessing the reasons behind these outcomes for future implications.

Stocks: ITRN MMS LDOS NTAP