{"id":44453,"date":"2018-11-07T03:32:00","date_gmt":"2018-11-07T03:32:00","guid":{"rendered":"https:\/\/wp2.inovestor.com\/2018\/11\/sizing-up-the-wealth-creators-among-u-s-technology-stocks\/"},"modified":"2018-11-07T03:32:00","modified_gmt":"2018-11-07T03:32:00","slug":"sizing-up-the-wealth-creators-among-u-s-technology-stocks","status":"publish","type":"post","link":"https:\/\/www.inovestor.com\/en-us\/2018\/11\/sizing-up-the-wealth-creators-among-u-s-technology-stocks\/","title":{"rendered":"Sizing up the wealth creators among U.S. technology stocks"},"content":{"rendered":"<p><span style=\"box-sizing: border-box; font-family: Lato, 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 14px; color: #1d2129;\">In the filter created this week for\u00a0The Globe and Mail, we\u00a0<\/span><span style=\"box-sizing: border-box; font-family: Lato, 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 14px;\">screened for\u00a0<span style=\"box-sizing: border-box; color: #62ccf9;\"><span style=\"box-sizing: border-box; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\"><a href=\"https:\/\/www.theglobeandmail.com\/investing\/investment-ideas\/number-cruncher\/article-sizing-up-the-wealth-creators-among-us-technology-stocks\/\" target=\"_blank\" rel=\"noopener noreferrer\">Wealth creators in the U.S. information technology sector.<\/a><\/span><\/span><\/span><\/p>\n<p>Signals indicating a nearing bear market have been encircling us for months. In periods such as these, fundamental analysis is key; we\u2019re looking for real quality that can protect one\u2019s portfolio. With U.S. technology stocks taking a particularly big hit recently, I decided to make that sector our focus.\u00a0We screened the U.S. information technology sector by focusing on the following criteria:<\/p>\n<ul>\n<li>Positive\u00a012-month change in the economic value-added (EVA) metric \u2013 a positive figure shows us that the company\u2019s profits are increasing at a faster and greater pace than the costs of capital. The EVA gives us a sense of how much value this stock is adding for shareholders and is calculated by taking the net operating profit after tax and subtracting the capital expense;<\/li>\n<li>Positive\u00a0EVA\/share, and EVA\/share growth over 12 months;<\/li>\n<li>Economic\u00a0performance index (EPI) \u2013 the ratio of return on capital to cost of capital \u2013 must be greater than one;<\/li>\n<li>Average\u00a0five-year return on capital must be greater than 10 per cent and the 12-month change in return on capital must be positive;<\/li>\n<li>Future\u00a0growth value\/market value (FGV\/MV) and its 12-month change. This ratio represents the proportion of the market value of the company that is made up of future growth expectations rather than the actual profit generated. The higher the percentage, the higher the baked-in premium for expected growth and the higher the risk;<\/li>\n<li>Beta\u00a0\u2013 this gives us an idea of how closely the company mimics the market\u2019s fluctuations. A beta of less than one would indicate the stock is less volatile than the market at large.<\/li>\n<\/ul>\n<p><strong style=\"box-sizing: border-box;\"><em style=\"box-sizing: border-box;\"><span style=\"box-sizing: border-box; color: #1d2129;\"><span style=\"box-sizing: border-box; font-family: Helvetica, Arial, sans-serif;\">Read more in this\u00a0<a href=\"https:\/\/www.theglobeandmail.com\/investing\/investment-ideas\/number-cruncher\/article-sizing-up-the-wealth-creators-among-us-technology-stocks\/\" target=\"_self\" rel=\"noopener noreferrer\"><span style=\"box-sizing: border-box; color: #62ccf9; background: transparent; outline: -webkit-focus-ring-color auto 5px; outline-offset: -2px; text-decoration-line: none;\"><span style=\"box-sizing: border-box; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\"><span style=\"box-sizing: border-box; background-image: initial; background-position: initial; background-size: initial; background-repeat: initial; background-attachment: initial; background-origin: initial; background-clip: initial;\">article<\/span><\/span><\/span>\u00a0<\/a>written by\u00a0<\/span><span style=\"box-sizing: border-box; font-family: Helvetica, Arial, sans-serif;\">Noor Hussain, Analyst &#038; Account Executive at Inovestor Inc.<\/span><\/span><\/em><\/strong><\/p>\n<div class=\"zone zone-content\" style=\"box-sizing: border-box; color: #222222; font-family: Lato, 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 14px;\">\n<article class=\"blog-post content-item\" style=\"box-sizing: border-box;\">\n<div class=\"post-body col-md-offset-2\" style=\"box-sizing: border-box; margin-left: 141.234px; position: relative;\">\n<h1><strong style=\"box-sizing: border-box;\"><em style=\"box-sizing: border-box;\"><span style=\"box-sizing: border-box; color: #1d2129;\"><span style=\"box-sizing: border-box; font-family: Helvetica, Arial, sans-serif;\">\u00a0<\/span><\/span><\/em><\/strong><\/h1>\n<h1 style=\"box-sizing: border-box; margin: 0px 0px 11px;\"><\/h1>\n<\/div>\n<div class=\"col-md-offset-2\" style=\"box-sizing: border-box; margin-left: 141.234px;\">\n<div style=\"box-sizing: border-box; clear: both;\"><\/div>\n<\/div>\n<\/article>\n<\/div>\n<div class=\"zone zone-content\" style=\"box-sizing: border-box; color: #222222; font-family: Lato, 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 14px;\">\n<article class=\"blog-post content-item\" style=\"box-sizing: border-box;\">\n<div class=\"post-body col-md-offset-2\" style=\"box-sizing: border-box; margin-left: 141.234px; position: relative;\"><\/div>\n<div class=\"col-md-offset-2\" style=\"box-sizing: border-box; margin-left: 141.234px;\">\n<div style=\"box-sizing: border-box; clear: both;\"><\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In the filter created this week for\u00a0The Globe and Mail, we\u00a0screened for\u00a0Wealth creators in the U.S. information technology sector. Signals indicating a nearing bear market have been encircling us for months. In periods such as these, fundamental analysis is key; we\u2019re looking for real quality that can protect one\u2019s portfolio. With U.S. technology stocks taking [&hellip;]<\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[626,627],"tags":[694,656,660],"class_list":["post-44453","post","type-post","status-publish","format-standard","hentry","category-number-cruncher-en-us","category-screeners-en-us","tag-eva-en-us","tag-technology-en-us","tag-us-en-us"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Sizing up the wealth creators among U.S. technology stocks - Inovestor<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.inovestor.com\/en-us\/2018\/11\/sizing-up-the-wealth-creators-among-u-s-technology-stocks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sizing up the wealth creators among U.S. technology stocks\" \/>\n<meta property=\"og:description\" content=\"In the filter created this week for\u00a0The Globe and Mail, we\u00a0screened for\u00a0Wealth creators in the U.S. information technology sector. Signals indicating a nearing bear market have been encircling us for months. In periods such as these, fundamental analysis is key; we\u2019re looking for real quality that can protect one\u2019s portfolio. With U.S. technology stocks taking [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.inovestor.com\/en-us\/2018\/11\/sizing-up-the-wealth-creators-among-u-s-technology-stocks\/\" \/>\n<meta property=\"og:site_name\" content=\"Inovestor\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Inovestor\/\" \/>\n<meta property=\"article:published_time\" content=\"2018-11-07T03:32:00+00:00\" \/>\n<meta name=\"author\" content=\"Newswire Inovestor\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Inovestor_\" \/>\n<meta name=\"twitter:site\" content=\"@Inovestor_\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Newswire Inovestor\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.inovestor.com\/en-us\/2018\/11\/sizing-up-the-wealth-creators-among-u-s-technology-stocks\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.inovestor.com\/en-us\/2018\/11\/sizing-up-the-wealth-creators-among-u-s-technology-stocks\/\"},\"author\":{\"name\":\"Newswire Inovestor\",\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#\/schema\/person\/4a05be738abb4600b8509b4f2d5a0bd7\"},\"headline\":\"Sizing up the wealth creators among U.S. technology stocks\",\"datePublished\":\"2018-11-07T03:32:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.inovestor.com\/en-us\/2018\/11\/sizing-up-the-wealth-creators-among-u-s-technology-stocks\/\"},\"wordCount\":316,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.inovestor.com\/en-ca\/#organization\"},\"keywords\":[\"EVA\",\"Technology\",\"US\"],\"articleSection\":[\"Number Cruncher\",\"Screeners\"],\"inLanguage\":\"en-USA\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.inovestor.com\/en-us\/2018\/11\/sizing-up-the-wealth-creators-among-u-s-technology-stocks\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.inovestor.com\/en-us\/2018\/11\/sizing-up-the-wealth-creators-among-u-s-technology-stocks\/\",\"url\":\"https:\/\/www.inovestor.com\/en-us\/2018\/11\/sizing-up-the-wealth-creators-among-u-s-technology-stocks\/\",\"name\":\"Sizing up the wealth creators among U.S. technology stocks - 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