The following are the top rated Information Technology stocks according to Validea’s Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.
APPLIED MATERIALS INC (AMAT) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett is 100% 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: Applied Materials, Inc. is a materials engineering solution company. The Company provides equipment, services and software to the semiconductor, display, and related industries. It operates in three segments: Semiconductor Systems, Applied Global Services (AGS), and Display. The Semiconductor systems segment designs, develops, manufactures and sells a range of primarily 300 mm equipment used to fabricate semiconductor chips, also referred to as integrated circuits (ICs). The AGS segment provides services, spares and factory automation software to customer fabrication plants globally. The AGS segment also manufactures and sells 200mm and other equipment. The Display segment is comprised primarily of products for manufacturing liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display technologies for televisions, monitors, laptops, personal computers (PCs), tablets, smartphones, and other consumer-oriented devices.
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 PREDICTABILITY: | PASS |
| DEBT SERVICE: | PASS |
| RETURN ON EQUITY: | PASS |
| RETURN ON TOTAL CAPITAL: | PASS |
| FREE CASH FLOW: | PASS |
| USE OF RETAINED EARNINGS: | PASS |
| SHARE REPURCHASE: | PASS |
| INITIAL RATE OF RETURN: | PASS |
| EXPECTED RETURN: | PASS |
Detailed Analysis of APPLIED MATERIALS INC
AMAT Guru Analysis
AMAT Fundamental Analysis
ASML HOLDING NV (ADR) (ASML) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett is 86% 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: ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
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 PREDICTABILITY: | PASS |
| DEBT SERVICE: | PASS |
| RETURN ON EQUITY: | PASS |
| RETURN ON TOTAL CAPITAL: | PASS |
| FREE CASH FLOW: | PASS |
| USE OF RETAINED EARNINGS: | PASS |
| SHARE REPURCHASE: | PASS |
| INITIAL RATE OF RETURN: | FAIL |
| EXPECTED RETURN: | PASS |
Detailed Analysis of ASML HOLDING NV (ADR)
ASML Guru Analysis
ASML Fundamental Analysis
APPLE INC (AAPL) is a large-cap growth stock in the Communications Equipment industry. The rating according to our strategy based on Warren Buffett is 79% 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: Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV and Apple Vision Pro.
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 PREDICTABILITY: | PASS |
| DEBT SERVICE: | PASS |
| RETURN ON EQUITY: | PASS |
| RETURN ON TOTAL CAPITAL: | PASS |
| FREE CASH FLOW: | PASS |
| USE OF RETAINED EARNINGS: | PASS |
| SHARE REPURCHASE: | PASS |
| INITIAL RATE OF RETURN: | FAIL |
| EXPECTED RETURN: | PASS |
Detailed Analysis of APPLE INC
AAPL Guru Analysis
AAPL Fundamental Analysis
MONOLITHIC POWER SYSTEMS INC (MPWR) is a large-cap growth stock in the Semiconductors industry. The rating according to our strategy based on Warren Buffett is 77% 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: Monolithic Power Systems, Inc. is a fabless company, which provides semiconductor-based power electronic solutions. The Company design and develop its products for the enterprise data, storage and computing, automotive, communications, consumer, and industrial end markets. Direct Current (DC) to DC, Alternating Current (AC) to DC, driver metal-oxide-semiconductor field-effect transistor, power management integrated circuit (IC), current limit switch and lighting control products. Its DC to DC ICs are used to convert and control voltages within a range of electronic systems, such as cloud-based central processing unit (CPU) servers, server artificial intelligence (AI) applications, storage applications, commercial notebooks, digital cockpit, power sources, home appliances, fourth generation (4G) and fifth generation (5G) infrastructure and satellite communications applications. The Company have sales offices in various locations in Asia, Europe and the United States.
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 PREDICTABILITY: | PASS |
| DEBT SERVICE: | PASS |
| RETURN ON EQUITY: | FAIL |
| RETURN ON TOTAL CAPITAL: | PASS |
| FREE CASH FLOW: | PASS |
| USE OF RETAINED EARNINGS: | PASS |
| SHARE REPURCHASE: | NEUTRAL |
| INITIAL RATE OF RETURN: | PASS |
| EXPECTED RETURN: | PASS |
Detailed Analysis of MONOLITHIC POWER SYSTEMS INC
MPWR Guru Analysis
MPWR Fundamental Analysis
ADOBE INC (ADBE) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Warren Buffett is 72% 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: Adobe Inc. is a global technology company. The Company’s products, services and solutions are used around the world to imagine, create, manage, deliver, measure, optimize and engage with content across surfaces and fuel digital experiences. Its segments include Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment is centered around Adobe Creative Cloud and Adobe Document Cloud, which include Adobe Express, Adobe Firefly, Photoshop and other products, offering a variety of tools for creative professionals, communicators and other consumers. The Digital Experience segment provides an integrated platform and set of products, services and solutions through Adobe Experience Cloud. The Publishing and Advertising segment contains legacy products and services. In addition, its Adobe GenStudio solution allows businesses to simplify their content supply chain process with generative artificial intelligence (AI) capabilities and intelligent 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.
| EARNINGS PREDICTABILITY: | PASS |
| DEBT SERVICE: | PASS |
| RETURN ON EQUITY: | FAIL |
| RETURN ON TOTAL CAPITAL: | FAIL |
| FREE CASH FLOW: | PASS |
| USE OF RETAINED EARNINGS: | PASS |
| SHARE REPURCHASE: | PASS |
| INITIAL RATE OF RETURN: | PASS |
| EXPECTED RETURN: | PASS |
Detailed Analysis of ADOBE INC
ADBE Guru Analysis
ADBE Fundamental Analysis
Warren Buffett Portfolio
Top Warren Buffett Stocks
About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world’s richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures — a cherry Coke, a good burger, and a good book are all near the top of the list — have been well-documented.
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.
#Valideas #Top #Information #Technology #Stocks #Based #Warren #Buffett