The following are the top rated Communication Services stocks according to Validea’s Price/Sales Investor model based on the published strategy of Kenneth Fisher. This value strategy rewards stocks with low P/S ratios, long-term profit growth, strong free cash flow and consistent profit margins.
TABOOLA.COM LTD (TBLA) is a small-cap value stock in the Software & Programming industry. The rating according to our strategy based on Kenneth Fisher is 70% 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: Taboola.com Ltd. is a technology company that powers recommendations across the Open Web with an artificial intelligence (AI)-based, algorithmic engine. The Company’s platform, powered by artificial intelligence, is used by digital properties, including Websites, devices and mobile applications, to drive monetization and user engagement on the Open Web. Digital properties use the Company’s technology platforms to achieve their business goals, such as driving new audiences to their sites and applications or increasing engagement on site. The Company enables advertisers to leverage its AI-powered recommendation platform to reach targeted audiences utilizing effective, native ad-formats across digital properties. As part of the Company E-Commerce offerings, it also syndicates its retailer advertisers’ monetized product listings and links (clickable advertisements) into commerce content-oriented consumer experiences on both the Open Web and within the dominant traditional ad platforms.
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.
| PRICE/SALES RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | FAIL |
| LONG-TERM EPS GROWTH RATE: | FAIL |
| FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | FAIL |
Detailed Analysis of TABOOLA.COM LTD
SINCLAIR INC (SBGI) is a small-cap value stock in the Broadcasting & Cable TV industry. The rating according to our strategy based on Kenneth Fisher is 60% 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: Sinclair, Inc. is a holding company of Sinclair Broadcast Group, Inc. (Sinclair Broadcast), which is a diversified media company and a provider of local news and sports. Its primary business is to engage consumers on multiple platforms with relevant and compelling news, entertainment, and sports content and to provide advertisers and businesses with the means and value to connect with its mass audiences. It owns, operates and/or provides services to approximately 185 television stations in 86 markets affiliated with all the key broadcast networks; owns Tennis Channel and multicast networks Comet, Charge!, and TBD; and owns and provides services to over 20 regional sports network brands. Its content is delivered through multiple platforms, including over-the-air, multi-channel video program distributors, and the streaming aggregator of local news content, NewsON.
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.
| PRICE/SALES RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | FAIL |
| PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | PASS |
| LONG-TERM EPS GROWTH RATE: | PASS |
| FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS |
Detailed Analysis of SINCLAIR INC
ALTICE USA INC (ATUS) is a small-cap value stock in the Communications Services industry. The rating according to our strategy based on Kenneth Fisher is 60% 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: Altice USA, Inc. is a holding company. The Company is engaged in providing broadband communications and video services and markets its services primarily under the Optimum brand. The Company delivers broadband, video, and telephony services to residential and business customers. It offers news programming and advertising services, and a full-service mobile offering to consumers across its footprint. The Company also provides enterprise-grade fiber connectivity, bandwidth and managed services to enterprise customers and provides advertising time and services to advertisers. It offers a variety of video services through Optimum television (TV), which includes delivery of broadcast stations and cable networks, over the top (OTT) services such as Netflix, YouTube and others. Through Voice over Internet Protocol (VoIP) telephone service it also offers unlimited local, regional and long-distance calling within the United States, Canada, Puerto Rico and the United States Virgin Islands.
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.
| PRICE/SALES RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | FAIL |
| PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | PASS |
| LONG-TERM EPS GROWTH RATE: | PASS |
| FREE CASH PER SHARE: | PASS |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | PASS |
Detailed Analysis of ALTICE USA INC
QUINSTREET INC (QNST) is a small-cap value stock in the Business Services industry. The rating according to our strategy based on Kenneth Fisher is 60% 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: QuinStreet, Inc. is engaged in providing performance marketplaces and technologies for the financial services and home services industries. The Company allows clients to engage intent digital media or traffic from a range of device types, in multiple formats or types of media, and in a range of cost-per-action (CPA) forms. Its primary products include qualified clicks, leads, calls, applications and customers. The Company specializes in customer acquisition for clients in high value, information-intensive markets, or verticals. Its media sources include owned-and-operated organic or search engine optimization websites, targeted search engine marketing (SEM) or pay-per-click (PPC) campaigns, social media and mobile programs, internal email databases, call center operations, partnerships with large and small online media companies, and more. It owns or accesses targeted media through business arrangements; runs advertisements or other forms of marketing messages and programs, and others.
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.
| PRICE/SALES RATIO: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| PRICE/RESEARCH RATIO: | PASS |
| PRICE/SALES RATIO: | FAIL |
| LONG-TERM EPS GROWTH RATE: | FAIL |
| FREE CASH PER SHARE: | FAIL |
| THREE YEAR AVERAGE NET PROFIT MARGIN: | FAIL |
Detailed Analysis of QUINSTREET INC
About Kenneth Fisher: The son of Philip Fisher, who is considered the “Father of Growth Investing”, Kenneth Fisher is a money manager, bestselling author, and longtime Forbes columnist. The younger Fisher wowed Wall Street in the mid-1980s when his book Super Stocks first popularized the idea of using the price/sales ratio (PSR) as a means of identifying attractive stocks. According to his alma mater, Humboldt State University, Fisher is also one of the world’s foremost experts on 19th century logging. Appropriately, Fisher’s firm, Fisher Investments, is located in a lush forest preserve in Woodside, California, where the contrarian-minded Fisher says he and his employees can get away from Wall Street groupthink.
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.
https://www.nasdaq.com/articles/valideas-top-communication-services-stocks-based-on-kenneth-fisher-11-26-2023
