The following are today's upgrades for 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.
SMART GLOBAL HOLDINGS INC ( SGH ) is a small-cap value stock in the Semiconductors industry. The rating according to our strategy based on Joel Greenblatt changed from 0% to 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: SMART Global Holdings, Inc. is a provider of specialty memory, storage and hybrid solutions. The Company delivers components, modules and storage solutions to original equipment manufacturers (OEMs) in computing, networking, communications, storage, mobile and industrial markets. The Company, through its SMART Specialty Compute & Storage Solutions (SCSS) unit is focused on offering its services in areas requiring specialized computing platforms in artificial intelligence ( AI ), machine learning (ML), advanced modeling and high performance computing serving enterprises and government organizations. It has its operations in the United States, Europe, Asia and Latin America, and enables it to provide customized, integrated supply chain services assisting worldwide OEM customers in the management and execution of their procurement and asset management processes. It also manufactures mobile memory products, memory components and modules for smart phones, desktops, notebooks and servers.
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.
|RETURN ON TANGIBLE CAPITAL:||NEUTRAL|
For a full detailed analysis using NASDAQ's Guru Analysis tool, click here
Since its inception, Validea's strategy based on Joel Greenblatt has returned 88.49% vs. 128.53% for the S&P 500. For more details on this strategy, click here
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.