Validea’s Top Five Technology Stocks Based On John Neff – 12/4/2022
The following are the top rated Technology stocks according to Validea’s Low PE Investor model based on the published strategy of John Neff. This strategy looks for firms with persistent earnings growth that trade at a discount relative to their earnings growth and dividend yield.
JABIL INC (JBL) is a mid-cap value stock in the Semiconductors industry. The rating according to our strategy based on John Neff is 81{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} or above typically indicates that the strategy has some interest in the stock and a score above 90{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} typically indicates strong interest.
Company Description: Jabil Inc. is a provider of manufacturing services and solutions. The Company provides comprehensive electronics design, production and product management services to companies in various industries and end markets. The Company has two segments: Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS). EMS segment is focused on leveraging information technology (IT), supply chain design and engineering, technologies centered on core electronics, sharing of its manufacturing infrastructure and the ability to serve a range of markets. EMS segment produces product to the customers primarily in the fifth generation, wireless and cloud, digital print and retail, industrial and semi-cap, and networking and storage industries. DMS segment is focused on providing engineering solutions, with a focus on material sciences, technologies and healthcare. DMS segment includes customers primarily in the automotive and transportation, connected devices, and other.
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 |
| EPS GROWTH: | FAIL |
| FUTURE EPS GROWTH: | PASS |
| SALES GROWTH: | PASS |
| TOTAL RETURN/PE: | PASS |
| FREE CASH FLOW: | PASS |
| EPS PERSISTENCE: | PASS |
Detailed Analysis of JABIL INC
MKS INSTRUMENTS INC (MKSI) is a mid-cap value stock in the Scientific & Technical Instr. industry. The rating according to our strategy based on John Neff is 79{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} or above typically indicates that the strategy has some interest in the stock and a score above 90{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} typically indicates strong interest.
Company Description: MKS Instruments, Inc. is a provider of instruments, subsystems, systems, process control solutions, and specialty chemicals technology. The Company operates through three segments: Vacuum Solutions Division (VSD), Photonics Solutions Division (PSD), and Materials Solutions Division (MSD). VSD delivers foundational technology solutions to semiconductor manufacturing, advanced electronics, and specialty industrial applications. VSD products are derived from its competencies in pressure measurement and control, electronic control technology, reactive gas generation and delivery, and vacuum technology. PSD solutions include lasers, beam measurement and profiling, precision motion control, vibration isolation systems, and systems for printed circuit board (PCB) laser processing for high-density interconnect PCB and IC substrate manufacturing. MSD 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 |
| EPS GROWTH: | PASS |
| FUTURE EPS GROWTH: | FAIL |
| SALES GROWTH: | PASS |
| TOTAL RETURN/PE: | PASS |
| FREE CASH FLOW: | PASS |
| EPS PERSISTENCE: | FAIL |
Detailed Analysis of MKS INSTRUMENTS INC
SKYWORKS SOLUTIONS INC (SWKS) is a large-cap value stock in the Semiconductors industry. The rating according to our strategy based on John Neff is 79{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} or above typically indicates that the strategy has some interest in the stock and a score above 90{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} typically indicates strong interest.
Company Description: Skyworks Solutions, Inc. is engaged in designing, manufacturing, and marketing, semiconductor products, including intellectual property. The Company’s analog semiconductors are connecting people, places, and things, across new applications within the aerospace, automotive, broadband, cellular infrastructure, connected home, entertainment, and gaming, industrial, medical, military, smartphone, tablet, and wearable markets. It operates engineering, manufacturing, sales, and service facilities throughout Asia, Europe, and North America. Its system solutions include Sky5, diversity receive (DRx) and multi-input multi-output (MIMO), SkyOne, antenna management, and integrated infrastructure. It offers a range of products, such as Amplifiers, Antenna Tuners, Attenuators, Automotive Tuners and Digital Radios, Circulators/Isolators, Demodulators, Detectors, Digital Power Isolators, Diodes, Directional Couplers, Diversity Receive Modules, Filters, Mixers, Modulators, Receivers, and Switches.
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 |
| EPS GROWTH: | PASS |
| FUTURE EPS GROWTH: | PASS |
| SALES GROWTH: | PASS |
| TOTAL RETURN/PE: | FAIL |
| FREE CASH FLOW: | PASS |
| EPS PERSISTENCE: | FAIL |
Detailed Analysis of SKYWORKS SOLUTIONS INC
ACCENTURE PLC (ACN) is a large-cap growth stock in the Computer Services industry. The rating according to our strategy based on John Neff is 62{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} or above typically indicates that the strategy has some interest in the stock and a score above 90{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} typically indicates strong interest.
Company Description: Accenture plc is a global professional services company engaged in providing a range of services in strategy and consulting, technology, operations and Accenture song. It serves clients in North America, Europe and Growth markets. It provides a range of services, including application services, artificial intelligence, automation, business process outsourcing, business strategy, change management, cloud, data and analytics, digital commerce, digital engineering and manufacturing, finance consulting, infrastructure, marketing, mergers and acquisitions, metaverse, operating models, security, supply chain management, technology consulting, technology innovation and zero-based transformation. It helps organizations to achieve transformational impact with solutions in C-Suite assessment, team dynamics and various others. It also offers automated production lines that leverage the cloud, data and artificial intelligence (AI) that makes factories and plants smarter through Eclipse Automation.
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: | FAIL |
| EPS GROWTH: | PASS |
| FUTURE EPS GROWTH: | PASS |
| SALES GROWTH: | PASS |
| TOTAL RETURN/PE: | FAIL |
| FREE CASH FLOW: | PASS |
| EPS PERSISTENCE: | PASS |
Detailed Analysis of ACCENTURE PLC
AXCELIS TECHNOLOGIES INC (ACLS) is a mid-cap growth stock in the Semiconductors industry. The rating according to our strategy based on John Neff is 62{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} or above typically indicates that the strategy has some interest in the stock and a score above 90{64d42ef84185fe650eef13e078a399812999bbd8b8ee84343ab535e62a252847} typically indicates strong interest.
Company Description: Axcelis Technologies, Inc. designs, manufactures and services ion implantation and other processing equipment used in the fabrication of semiconductor chips. The Company provides aftermarket lifecycle products and services, including used tools, spare parts, equipment upgrades, maintenance services and customer training. It offers a complete line of high energy, high current and medium current implanters for all application requirements. Its Purion systems are all based on a common platform, which enables a combination of implant purity, precision and productivity. Its Purion H, Purion Dragon and Purion H200 spot beam, high current systems cover all high current requirements. Its Purion XE and other Purion high energy system combines its radio frequency (RF) Linac high energy, spot beam technology with the Purion platform wafer handling system. It provides Purion M Si and SiC medium current system. Its Purion M systems also offer differentiated capabilities for specialty applications.
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: | FAIL |
| EPS GROWTH: | FAIL |
| FUTURE EPS GROWTH: | PASS |
| SALES GROWTH: | PASS |
| TOTAL RETURN/PE: | PASS |
| FREE CASH FLOW: | PASS |
| EPS PERSISTENCE: | PASS |
Detailed Analysis of AXCELIS TECHNOLOGIES INC
More details on Validea’s John Neff strategy
About John Neff: While known as the manager with whom many top managers entrusted their own money, Neff was far from the smooth-talking, high-profile Wall Streeter you might expect. He was mild-mannered and low-key, and the same might be said of the Windsor Fund that he managed for more than three decades. In fact, Neff himself described the fund as “relatively prosaic, dull, [and] conservative.” There was nothing dull about his results, however. From 1964 to 1995, Neff guided Windsor to a 13.7 percent average annual return, easily outpacing the S&P 500’s 10.6 percent return during that time. That 3.1 percentage point difference is huge over time — a $10,000 investment in Windsor (with dividends reinvested) at the start of Neff’s tenure would have ended up as more than $564,000 by the time he retired, more than twice what the same investment in the S&P would have yielded (about $233,000). Considering the length of his tenure, that track record may be the best ever for a manager of such a large fund.
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
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