{"id":3153,"date":"2023-06-02T22:10:01","date_gmt":"2023-06-02T22:10:01","guid":{"rendered":"http:\/\/blog.valuengine.com\/?p=3153"},"modified":"2023-06-05T03:36:19","modified_gmt":"2023-06-05T03:36:19","slug":"the-many-dimensions-of-technology-etfs-and-the-stocks-they-hold","status":"publish","type":"post","link":"http:\/\/blog.valuengine.com\/index.php\/the-many-dimensions-of-technology-etfs-and-the-stocks-they-hold\/","title":{"rendered":"The Many Dimensions of Technology ETFs and the Stocks They Hold"},"content":{"rendered":"

The US Stock Market, led by technology, has outperformed most expectations this year. Going into Memorial Day weekend, <\/span>SPY<\/b>, the most popular S&P 500 ETF, has risen more than 10%. That\u2019s a very impressive number in the face of many of the best-known strategists predicting a down year for the major index in 2023.\u00a0\u00a0<\/span><\/p>\n

As impressive as that is, the largest ETF of most-quoted technology indexes, Invesco\u2019s <\/span>QQQ <\/b>tracking the Nasdaq-100, rose 31% year-to-date heading into the Memorial Day weekend.\u00a0 Semiconductors led the way with Van Eck\u2019s Semiconductor ETF, <\/span>SMH<\/b>, recording a 45% year-to-date return. This is\u00a0 nearly 50% higher than that of <\/span>QQQ<\/b>.\u00a0 <\/span>SOXX, <\/b>the iShares Semiconductor ETF, finished second among the Technology ETFs in this report with a 41% gain.\u00a0 \u00a0 After that, the others that had superior returns for both YTD and annualized five-year returns were broader technology sector ETFs including, in order of magnitude of returns:\u00a0 <\/span>XLK<\/b> by SSgA\u2019s SPDR ETFs; <\/span>VGT <\/b>by Vanguard; <\/span>IYW <\/b>by iShares (Blackrock); and <\/span>FTEC<\/b> by<\/span> Fidelity.\u00a0 The Fidelity ETF has the lowest fee, 0.08%, while <\/span>IYW <\/b>is the most expensive.\u00a0\u00a0<\/span><\/p>\n

All 5,000 stocks, 16 sector groups, 140 industries, and 500 ETFs have been updated.<\/b><\/h5>\n
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With technology leading the market, this blog focuses on the spectrum of Technology ETFs, followed by a quick look at a few technology stocks that are highly rated by ValuEngine.\u00a0 Most, but not all, are weighted by market capitalization which favors momentum stocks and can have concentration problems.\u00a0 An equally weighted alternative is <\/span>RYT<\/b>, Invesco S&P 500 Equal-Weight Technology ETF.\u00a0 Its performance for the Year-to-date and 5-Year periods is less than that of <\/span>QQQ <\/b>but still more robust than <\/span>SPY.\u00a0 <\/b>Other technology ETFs focus on specific sub industries and subsets within the sector.\u00a0 Most are narrower and more expensive than the broad ETFs.\u00a0 The ARK Investment Management ETFs, <\/span>ARKK<\/b>, <\/span>ARKW <\/b>and<\/span> ARKQ<\/b>,<\/span> are actively managed and have suffered recent struggles to post returns as robust as <\/span>QQQ<\/b>.<\/span><\/p>\n

ETFdb.com, a leading ETF data analytics site, classifies 59 US-stock ETFs as being in the Technology Sector. \u00a0 The following table includes 37 of these, limiting inclusion to those that have had at least 5 years of history since inception.\u00a0\u00a0<\/span><\/p>\n

Current ValuEngine reports on these stocks or ETFS can be viewed<\/b> HERE<\/b><\/a><\/h5>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Num<\/span><\/td>\nTicker<\/span><\/td>\nName<\/span><\/td>\n# Stocks<\/span><\/td>\nAUM ($Bil)<\/span><\/td>\nYTD Price Change<\/span><\/td>\n5 Year Returns<\/b><\/td>\nExp.<\/span><\/td>\nDiv Yield %<\/span><\/td>\nBeta<\/span><\/td>\n<\/tr>\n
1<\/span><\/td>\nSMH<\/span><\/td>\nVanEck Semiconductor ETF<\/span><\/td>\n26<\/span><\/td>\n8.53<\/span><\/td>\n45.23%<\/b><\/td>\n23.58%<\/b><\/td>\n0.35%<\/span><\/td>\n1.6%<\/span><\/td>\n1.35<\/span><\/td>\n<\/tr>\n
2<\/span><\/td>\nXSD<\/span><\/td>\nSPDR S&P Semiconductor ETF<\/span><\/td>\n39<\/span><\/td>\n1.39<\/span><\/td>\n25.57%<\/span><\/td>\n23.40%<\/span><\/td>\n0.35%<\/span><\/td>\n0.4%<\/span><\/td>\n1.41<\/span><\/td>\n<\/tr>\n
3<\/span><\/td>\nSOXX<\/span><\/td>\niShares Semiconductor ETF<\/span><\/td>\n31<\/span><\/td>\n8.00<\/span><\/td>\n41.07%<\/span><\/td>\n22.41%<\/span><\/td>\n0.35%<\/span><\/td>\n0.9%<\/span><\/td>\n1.34<\/span><\/td>\n<\/tr>\n
4<\/span><\/td>\nXLK<\/span><\/td>\nTechnology Select Sector SPDR Fund<\/span><\/td>\n66<\/span><\/td>\n45.08<\/span><\/td>\n32.71%<\/span><\/td>\n20.11%<\/span><\/td>\n0.10%<\/span><\/td>\n0.8%<\/span><\/td>\n1.14<\/span><\/td>\n<\/tr>\n
5<\/span><\/td>\nVGT<\/span><\/td>\nVanguard Information Technology ETF<\/span><\/td>\n352<\/span><\/td>\n48.76<\/span><\/td>\n31.30%<\/span><\/td>\n19.21%<\/span><\/td>\n0.10%<\/span><\/td>\n0.7%<\/span><\/td>\n1.16<\/span><\/td>\n<\/tr>\n
6<\/span><\/td>\nPSI<\/span><\/td>\nInvesco Dynamic Semiconductors ETF<\/span><\/td>\n31<\/span><\/td>\n0.57<\/span><\/td>\n28.95%<\/span><\/td>\n19.08%<\/span><\/td>\n0.56%<\/span><\/td>\n0.6%<\/span><\/td>\n1.39<\/span><\/td>\n<\/tr>\n
7<\/span><\/td>\nIYW<\/span><\/td>\niShares U.S. Technology ETF<\/span><\/td>\n141<\/span><\/td>\n11.44<\/span><\/td>\n38.78%<\/span><\/td>\n18.77%<\/span><\/td>\n0.39%<\/span><\/td>\n0.4%<\/span><\/td>\n1.15<\/span><\/td>\n<\/tr>\n
8<\/span><\/td>\nFTEC<\/span><\/td>\nFidelity MSCI Information Technology Index ETF<\/span><\/td>\n358<\/b><\/td>\n6.38<\/span><\/td>\n31.16%<\/span><\/td>\n18.57%<\/span><\/td>\n0.08%<\/b><\/td>\n0.8%<\/span><\/td>\n1.16<\/span><\/td>\n<\/tr>\n
9<\/span><\/td>\nPTF<\/span><\/td>\nInvesco DWA Technology Momentum ETF<\/span><\/td>\n41<\/span><\/td>\n0.25<\/span><\/td>\n20.49%<\/span><\/td>\n17.77%<\/span><\/td>\n0.60%<\/span><\/td>\n0.0%<\/span><\/td>\n1.23<\/span><\/td>\n<\/tr>\n
10<\/span><\/td>\nQQQ<\/span><\/td>\nInvesco QQQ Trust<\/span><\/td>\n102<\/span><\/td>\n180.33<\/b><\/td>\n31.04%<\/span><\/td>\n16.30%<\/span><\/td>\n0.20%<\/span><\/td>\n0.6%<\/span><\/td>\n1.11<\/span><\/td>\n<\/tr>\n
11<\/span><\/td>\nIETC<\/span><\/td>\n iShares U.S. Tech Independence Focused ETF<\/span><\/td>\n164<\/span><\/td>\n0.13<\/span><\/td>\n28.07%<\/span><\/td>\n16.22%<\/span><\/td>\n0.18%<\/span><\/td>\n0.9%<\/span><\/td>\n1.12<\/span><\/td>\n<\/tr>\n
12<\/span><\/td>\nFTXL<\/span><\/td>\nFirst Trust Nasdaq Semiconductor ETF<\/span><\/td>\n32<\/span><\/td>\n1.00<\/span><\/td>\n26.41%<\/span><\/td>\n15.26%<\/span><\/td>\n0.60%<\/span><\/td>\n0.7%<\/span><\/td>\n1.29<\/span><\/td>\n<\/tr>\n
13<\/span><\/td>\nIGM<\/span><\/td>\niShares Expanded Tech Sector ETF<\/span><\/td>\n327<\/span><\/td>\n3.00<\/span><\/td>\n33.78%<\/span><\/td>\n14.78%<\/span><\/td>\n0.40%<\/span><\/td>\n0.6%<\/span><\/td>\n1.18<\/span><\/td>\n<\/tr>\n
14<\/span><\/td>\nFXL<\/span><\/td>\nFirst Trust Technology AlphaDEX Fund<\/span><\/td>\n100<\/span><\/td>\n1.08<\/span><\/td>\n17.92%<\/span><\/td>\n13.79%<\/span><\/td>\n0.61%<\/span><\/td>\n0.3%<\/span><\/td>\n1.19<\/span><\/td>\n<\/tr>\n
15<\/span><\/td>\nXNTK<\/span><\/td>\nSPDR NYSE Technology ETF<\/span><\/td>\n36<\/span><\/td>\n0.46<\/span><\/td>\n35.05%<\/span><\/td>\n13.36%<\/span><\/td>\n0.35%<\/span><\/td>\n0.7%<\/span><\/td>\n1.23<\/span><\/td>\n<\/tr>\n
16<\/span><\/td>\nRYT<\/span><\/td>\nInvesco S&P 500\u00c2\u00ae Equal Weight Technology ETF<\/span><\/td>\n65<\/span><\/td>\n2.86<\/span><\/td>\n16.21%<\/span><\/td>\n13.17%<\/span><\/td>\n0.40%<\/span><\/td>\n0.7%<\/span><\/td>\n1.18<\/span><\/td>\n<\/tr>\n
17<\/span><\/td>\nQTEC<\/span><\/td>\nFirst Trust NASDAQ-100 Technology Sector Index Fund<\/span><\/td>\n38<\/span><\/td>\n1.68<\/span><\/td>\n34.10%<\/span><\/td>\n12.81%<\/span><\/td>\n0.57%<\/span><\/td>\n0.2%<\/span><\/td>\n1.17<\/span><\/td>\n<\/tr>\n
18<\/span><\/td>\nIGV<\/span><\/td>\niShares Expanded Tech-Software Sector ETF<\/span><\/td>\n118<\/span><\/td>\n5.57<\/span><\/td>\n26.40%<\/span><\/td>\n12.32%<\/span><\/td>\n0.40%<\/span><\/td>\n0.0%<\/span><\/td>\n1.06<\/span><\/td>\n<\/tr>\n
19<\/span><\/td>\nAIQ<\/span><\/td>\nGlobal X Artificial Intelligence & Technology ETF<\/span><\/td>\n86<\/span><\/td>\n0.19<\/span><\/td>\n29.60%<\/span><\/td>\n12.15%<\/span><\/td>\n0.68%<\/span><\/td>\n0.4%<\/span><\/td>\n1.13<\/span><\/td>\n<\/tr>\n
20<\/span><\/td>\nCIBR<\/span><\/td>\nFirst Trust NASDAQ Cybersecurity ETF<\/span><\/td>\n36<\/span><\/td>\n4.65<\/span><\/td>\n12.63%<\/span><\/td>\n11.19%<\/span><\/td>\n0.76%<\/span><\/td>\n0.2%<\/span><\/td>\n1.00<\/span><\/td>\n<\/tr>\n
21<\/span><\/td>\nPSCT<\/span><\/td>\nInvesco S&P SmallCap Information Technology ETF<\/span><\/td>\n68<\/span><\/td>\n0.31<\/span><\/td>\n15.39%<\/span><\/td>\n11.19%<\/span><\/td>\n0.29%<\/span><\/td>\n0.0%<\/span><\/td>\n1.22<\/span><\/td>\n<\/tr>\n
22<\/span><\/td>\nTDIV<\/span><\/td>\nFirst Trust NASDAQ Technology Dividend Index Fund<\/span><\/td>\n93<\/span><\/td>\n1.80<\/span><\/td>\n15.98%<\/span><\/td>\n11.19%<\/span><\/td>\n0.50%<\/span><\/td>\n2.1%<\/b><\/td>\n1.00<\/span><\/td>\n<\/tr>\n
23<\/span><\/td>\nXSW<\/span><\/td>\nSPDR S&P Software & Services ETF<\/span><\/td>\n156<\/span><\/td>\n0.24<\/span><\/td>\n14.49%<\/span><\/td>\n9.42%<\/span><\/td>\n0.35%<\/span><\/td>\n0.1%<\/span><\/td>\n1.13<\/span><\/td>\n<\/tr>\n
24<\/span><\/td>\nXT<\/span><\/td>\niShares Exponential Technologies ETF<\/span><\/td>\n198<\/span><\/td>\n3.21<\/span><\/td>\n12.57%<\/span><\/td>\n8.80%<\/span><\/td>\n0.46%<\/span><\/td>\n0.7%<\/span><\/td>\n1.02<\/span><\/td>\n<\/tr>\n
25<\/span><\/td>\nPXQ<\/span><\/td>\nInvesco Dynamic Networking ETF<\/span><\/td>\n31<\/span><\/td>\n0.04<\/span><\/td>\n7.53%<\/span><\/td>\n8.57%<\/span><\/td>\n0.63%<\/span><\/td>\n1.5%<\/span><\/td>\n1.02<\/span><\/td>\n<\/tr>\n
26<\/span><\/td>\nPSJ<\/span><\/td>\nInvesco Dynamic Software ETF<\/span><\/td>\n31<\/span><\/td>\n0.19<\/span><\/td>\n13.11%<\/span><\/td>\n7.97%<\/span><\/td>\n0.56%<\/span><\/td>\n1.3%<\/span><\/td>\n1.01<\/span><\/td>\n<\/tr>\n
27<\/span><\/td>\nSKYY<\/span><\/td>\nFirst Trust Cloud Computing ETF<\/span><\/td>\n66<\/span><\/td>\n2.63<\/span><\/td>\n23.12%<\/span><\/td>\n6.92%<\/span><\/td>\n0.60%<\/span><\/td>\n0.1%<\/span><\/td>\n1.06<\/span><\/td>\n<\/tr>\n
28<\/span><\/td>\nHACK<\/span><\/td>\nETFMG Prime Cyber Security Fund<\/span><\/td>\n58<\/span><\/td>\n1.40<\/span><\/td>\n10.33%<\/span><\/td>\n6.00%<\/span><\/td>\n0.60%<\/span><\/td>\n0.2%<\/span><\/td>\n0.93<\/b><\/td>\n<\/tr>\n
29<\/span><\/td>\nIGN<\/span><\/td>\niShares North American Tech-Multimedia Networking ETF<\/span><\/td>\n23<\/span><\/td>\n0.09<\/span><\/td>\n-1.63%<\/span><\/td>\n5.82%<\/span><\/td>\n0.40%<\/span><\/td>\n0.4%<\/span><\/td>\n1.11<\/span><\/td>\n<\/tr>\n
30<\/span><\/td>\nXITK<\/span><\/td>\nSPDR FactSet Innovative Technology ETF<\/span><\/td>\n101<\/span><\/td>\n0.09<\/span><\/td>\n20.27%<\/span><\/td>\n5.39%<\/span><\/td>\n0.45%<\/span><\/td>\n0.1%<\/span><\/td>\n1.14<\/span><\/td>\n<\/tr>\n
31<\/span><\/td>\nFDN<\/span><\/td>\nFirst Trust Dow Jones Internet Index Fund<\/span><\/td>\n43<\/span><\/td>\n4.11<\/span><\/td>\n25.12%<\/span><\/td>\n3.04%<\/span><\/td>\n0.52%<\/span><\/td>\n0.0%<\/span><\/td>\n1.12<\/span><\/td>\n<\/tr>\n
32<\/span><\/td>\nARKW<\/span><\/td>\nARK Next Generation Internet ETF<\/span><\/td>\n30<\/span><\/td>\n1.22<\/span><\/td>\n32.50%<\/span><\/td>\n2.16%<\/span><\/td>\n0.88%<\/span><\/td>\n0.0%<\/span><\/td>\n1.55<\/span><\/td>\n<\/tr>\n
33<\/span><\/td>\nPNQI<\/span><\/td>\nInvesco NASDAQ Internet ETF<\/span><\/td>\n85<\/span><\/td>\n0.54<\/span><\/td>\n31.21%<\/span><\/td>\n1.93%<\/span><\/td>\n0.60%<\/span><\/td>\n0.0%<\/span><\/td>\n1.15<\/span><\/td>\n<\/tr>\n
34<\/span><\/td>\nIPAY<\/span><\/td>\nETFMG Prime Mobile Payments Fund<\/span><\/td>\n55<\/span><\/td>\n0.45<\/span><\/td>\n3.49%<\/span><\/td>\n1.19%<\/span><\/td>\n0.75%<\/span><\/td>\n0.0%<\/span><\/td>\n1.25<\/span><\/td>\n<\/tr>\n
35<\/span><\/td>\nARKK<\/span><\/td>\nARK Innovation ETF<\/span><\/td>\n29<\/span><\/td>\n7.79<\/span><\/td>\n25.16%<\/span><\/td>\n-1.35%<\/span><\/td>\n0.75%<\/span><\/td>\n0.0%<\/span><\/td>\n1.64<\/span><\/td>\n<\/tr>\n
36<\/span><\/td>\nPRNT<\/span><\/td>\n3D Printing ETF<\/span><\/td>\n53<\/span><\/td>\n0.17<\/span><\/td>\n7.17%<\/span><\/td>\n-2.35%<\/span><\/td>\n0.66%<\/span><\/td>\n0.0%<\/span><\/td>\n1.25<\/span><\/td>\n<\/tr>\n
37<\/span><\/td>\nXWEB<\/span><\/td>\nSPDR S&P Internet ETF<\/span><\/td>\n32<\/span><\/td>\n0.02<\/span><\/td>\n13.71%<\/span><\/td>\n-2.79%<\/span><\/td>\n0.35%<\/span><\/td>\n0.0%<\/span><\/td>\n1.39<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
<\/h5>\n
Current ValuEngine reports on these stocks or ETFS can be viewed<\/b> HERE<\/b><\/a><\/h5>\n

Looking forward instead of retrospectively, ValuEngine\u2019s predictive model currently has at least one ETF in each of its five predictive categories.\u00a0 As it turns out, the majority of these ETFs and the best performers on this list are all rated as <\/span>1 (Strong Sell) <\/b>including all nine ETFs with 5-Year annualized returns greater than <\/span>QQQ<\/b> in the chart above. <\/span>QQQ <\/b>escapes our lowest predictive model rating with a <\/span>2 <\/b>(Sell) rather than a Strong Sell. My analysis of the indicators supporting the model is that the price acceleration is not sufficiently supported by acceleration of earnings growth to prevent mean reversion in the upcoming 12 months.\u00a0 A simpler way of saying it is that these ETFs and many of the stocks they own have gotten too far ahead of themselves.\u00a0 When it comes to those components, ValuEngine\u2019s valuation model isn\u2019t any more positive.\u00a0 For example, 27 of the 30 stocks held by <\/span>SOXX <\/b>are ranked as \u201covervalued.\u201d<\/span><\/p>\n

At the other end of the spectrum, most of the buy- rated ETFs by our model for one-year price appreciation have had more modest gains on a five-year annualized basis.\u00a0 Almost all the ETFs in this group are internet-software and cloud-computing oriented.\u00a0 The <\/span>5<\/b>-rated (Strong Buy) ETFs include:<\/span><\/p>\n

PNQI<\/b> – Invesco NASDAQ Internet ETF \u2013 This ETF tracks a modified-market-cap-weighted index of Internet companies listed in the US.\u00a0 Included in the index are software companies, search engines, web hosting or web design, and companies involved with internet retail commerce, as determined by the Consumer Technology Association. The index tames the exposure to mega-cap companies by capping the five highest-ranked securities at 8% and the remaining securities at 4%<\/span><\/p>\n

PSJ – <\/b>Invesco Dynamic Software ETF – selects 30 companies based on its analysis of risk factors, style classification and stock valuation, with the hope of outperforming the industry.\u00a0 Specifically, stocks are evaluated based on five factors, such as price momentum, earnings momentum, quality, management action, and value. Despite including big names, PSJ’s tiered weighting system shifts its focus to smaller-growth companies \u2014 more than 30% is allocated to small- and micro-caps.<\/span><\/p>\n

XWEB<\/b> \u2013 SPDR S&P Internet ETF – XWEB provides equal-weighted exposure to the internet segment of an index that represents the broad US equity market. The fund\u2019s portfolio comprises internet retail, software, and services stocks, as defined by GICS. Since XWEB focuses on internet companies within the technology sector, it avoids hardware and semiconductors.<\/span><\/p>\n

The assets under management (AUM) of these 5-rated ETFs tend to be on the smaller side with <\/span>PNQI <\/b>the largest at $540 million to the $24 million in <\/span>XWEB.\u00a0\u00a0<\/b><\/p>\n

There are several interesting ETFs rated <\/span>4 <\/b>(Buy) in this group as well.\u00a0 They include:\u00a0<\/span><\/p>\n

IGV<\/b> – iShares Expanded Tech-Software Sector ETF <\/span>\u2013 IGV <\/b>provides diverse exposure to the North American software industry. The index redistributes its portfolio away from tech giants into smaller, more growth-oriented software companies.\u00a0 <\/span>IGV, <\/b>rated <\/span>4 <\/b>(Buy)<\/span> is larger than all three <\/span>5<\/b>-rated ETFs with 5.6 billion under management.<\/span><\/p>\n

SKYY <\/b>– First Trust Cloud Computing ETF – was the first ETF to offer exposure to the cloud computing industry, a narrow segment of the technology sector that involves a fast-growing application. <\/span>SKYY<\/b> is so targeted on cloud computing that it can be a useful tool for fine tuning portfolio exposure. It could also have appeal as a minor \u201csatellite\u201d holding in a longer-term buy-and-hold portfolio to complement core positions.\u00a0 <\/span>SKYY, <\/b>rated <\/span>4 <\/b>(Buy),<\/span> has more than $2.3 billion in AUM.\u00a0\u00a0<\/span><\/p>\n

XSW <\/b>– SPDR S&P Software & Services ETF \u2013 is an equally weighted <\/span>XSW\u00a0ETF <\/span>that includes exposure to application software stocks, internet software and services companies, data processing firms, systems software manufacturers, IT consulting companies, and makers of home entertainment software.\u00a0 <\/span>XSW, <\/b>rated <\/span>4 <\/b>(Buy)<\/span> is smaller than <\/span>IGV <\/b>and <\/span>SKYY <\/b>with $240 Million in AUM.<\/span><\/p>\n

Switching the focus to underlying stocks, the technology sector\u2019s highest market cap holdings, Apple Corp. (<\/span>AAPL)<\/b> and Microsoft Corp. (<\/span>MSFT<\/b>) are both rated <\/span>3 <\/b>(Hold).\u00a0 But the biggest price-moving components in the sector are semiconductor companies Nvidia Corp. (<\/span>NVDA) <\/b>and Rambis Inc. (<\/span>RMBS), <\/b>both rated <\/span>1 <\/b>(Strong Sell). <\/span>NVDA <\/b>has gone through the roof because its hardware is essential for further development to most of the established leaders in the Artificial Intelligence race.\u00a0 However, along with a forward P\/E of more than 100 and a 3<\/span>rd<\/span> centile (97% stocks more undervalued) score in our valuation model, our predictive model forecasts a 10% loss.\u00a0\u00a0<\/span><\/p>\n

However, there are several stocks in the sector our predictive model likes.\u00a0 The following stocks are all rated <\/span>5<\/b> (Strong Buy) and have market capitalizations of $4 Billion or greater.\u00a0<\/span><\/p>\n

UI <\/b>\u2013 Ubiquiti Inc. \u2013 develops technology platforms for high-capacity distributed Internet access, unified information technology, and consumer electronics for professional, home, and personal use.<\/span><\/p>\n

WIX <\/b>\u2013 Wix.com Ltd. – develops and markets a cloud-based platform that enables customers to create websites and\/or web applications.\u00a0\u00a0<\/span><\/p>\n

CDAY <\/b>\u2013 Ceridian HCM Holding Inc., together with its subsidiaries, operates as a human capital management (HCM) software company in the United States, Canada, and internationally. It offers Dayforce, a cloud HCM platform that provides human resources, payroll, benefits, workforce management, and talent management functionality; and Powerpay, a cloud HR and payroll solution for the small business market.<\/span><\/p>\n

Financial Advisory Services based on ValuEngine research available:\u00a0 <\/b>www.ValuEngineCapital.com<\/b><\/a><\/h5>\n

This table presents a look at the data behind these stocks and compares them to <\/span>1<\/b>-rated (Strong Sell) <\/span>NVDA<\/b>.\u00a0 Two ETFs, the iShares S&P 500 Index ETF (<\/span>IVV<\/b>) and Invesco Nasdaq-100 (<\/span>QQQ) <\/b>are also used for comparison and benchmarking purposes.\u00a0\u00a0<\/span><\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0Ticker<\/span><\/td>\nUI<\/b><\/td>\nWIX<\/b><\/td>\nCDAY<\/b><\/td>\nNVDA<\/b><\/td>\nQQQ<\/b><\/td>\nIVV<\/b><\/td>\n<\/tr>\n
Stock\/ETF<\/span><\/td>\nUbiquiti Inc.<\/b><\/td>\nWix.com Ltd.<\/b><\/td>\nCeridian Inc.<\/b><\/td>\nNVDIA Corp.<\/b><\/td>\nInvesco Nasdaq-100 ETF<\/b><\/td>\niShares S&P 500 Index ETF<\/b><\/td>\n<\/tr>\n
Market Cap, (Billions)<\/span><\/td>\n10.0<\/span><\/td>\n4.3<\/span><\/td>\n9.6<\/span><\/td>\n936.7<\/b><\/td>\n890.4 (Mkt-Weighted Avg. Holding)<\/span><\/td>\n540.3 (Mkt-Weighted Avg. Holding)<\/span><\/td>\n<\/tr>\n
ValuEngine Rating<\/b><\/td>\n5<\/b><\/td>\n5<\/b><\/td>\n5<\/b><\/td>\n1<\/b><\/td>\n2<\/b><\/td>\n3<\/b><\/td>\n<\/tr>\n
VE Forecast 1-yr. Price Return<\/b><\/td>\n+14.90%<\/span><\/td>\n+16.00%<\/b><\/td>\n+13.75%<\/span><\/td>\n-9.69%<\/span><\/td>\n-4.32%<\/i><\/b><\/td>\n-1.21%<\/i><\/b><\/td>\n<\/tr>\n
Last mo. Price Return<\/span><\/td>\n-28.91%<\/span><\/td>\n-12.62%<\/span><\/td>\n-2.57%<\/span><\/td>\n+36.34%<\/b><\/td>\n+11.77%<\/i><\/b><\/td>\n+3.89%<\/i><\/b><\/td>\n<\/tr>\n
Last 3 mo. Price Return<\/span><\/td>\n-38.86%<\/span><\/td>\n-15.81%<\/span><\/td>\n-15.19%<\/span><\/td>\n+62.97%<\/b><\/td>\n+18.53%<\/i><\/b><\/td>\n+5.62%<\/i><\/b><\/td>\n<\/tr>\n
Last 6 mo. Price Return<\/span><\/td>\n-43.94%<\/span><\/td>\n-15.77%<\/span><\/td>\n-9.63%<\/span><\/td>\n+123.57%<\/b><\/td>\n+21.43%<\/i><\/b><\/td>\n+4.42%<\/i><\/b><\/td>\n<\/tr>\n
Historic 1-Yr. Price Return<\/span><\/td>\n-36.28%<\/span><\/td>\n+20.96%<\/span><\/td>\n+9.86%<\/span><\/td>\n+102.62%<\/b><\/td>\n+16.39%<\/i><\/b><\/td>\n+3.66%<\/i><\/b><\/td>\n<\/tr>\n
Historic 5-Yr Ann. Price Return<\/span><\/td>\n+23.66%<\/span><\/td>\n+1.18%<\/span><\/td>\n+13.96%<\/span><\/td>\n+31.93%<\/b><\/td>\n+13.91%<\/i><\/b><\/td>\n+9.00%<\/i><\/b><\/td>\n<\/tr>\n
Volatility<\/span><\/td>\n44.07%<\/span><\/td>\n34.61%<\/b><\/td>\n41.40%<\/span><\/td>\n51.67%<\/span><\/td>\n37.09%<\/i><\/b><\/td>\n18.90%<\/i><\/b><\/td>\n<\/tr>\n
Sharpe Ratio<\/span><\/td>\n0.54<\/span><\/td>\n0.02<\/span><\/td>\n0.34<\/span><\/td>\n0.62<\/b><\/td>\n-0.06<\/i><\/b><\/td>\n0.46<\/i><\/b><\/td>\n<\/tr>\n
Beta<\/span><\/td>\n1.21<\/b><\/td>\n1.24<\/span><\/td>\n1.48<\/span><\/td>\n1.81<\/span><\/td>\n0.61<\/i><\/b><\/td>\n1.00<\/i><\/b><\/td>\n<\/tr>\n
Undervaluation Percentile<\/span><\/td>\n86<\/span><\/td>\n87<\/b><\/td>\n42<\/span><\/td>\n3<\/span><\/td>\n33*<\/i><\/b><\/td>\n38*<\/i><\/b><\/td>\n<\/tr>\n
P\/E Ratio<\/span><\/td>\n24.5<\/b><\/td>\nNeg.<\/span><\/td>\n3711.0<\/span><\/td>\n172.8<\/span><\/td>\n42.6<\/i><\/b><\/td>\n19.8<\/i><\/b><\/td>\n<\/tr>\n
PEG Ratio<\/span><\/td>\n0.47<\/b><\/td>\n6.02<\/span><\/td>\n1.41<\/span><\/td>\n2.49<\/span><\/td>\n4.58<\/i><\/b><\/td>\n1.64<\/i><\/b><\/td>\n<\/tr>\n
P\/S Ratio<\/span><\/td>\n5.3<\/span><\/td>\n3.1<\/b><\/td>\n7.2<\/span><\/td>\n36.1<\/span><\/td>\n4.3<\/i><\/b><\/td>\n2.4<\/i><\/b><\/td>\n<\/tr>\n
Div. Yield<\/span><\/td>\nNil<\/span><\/td>\nNil<\/span><\/td>\nNil<\/span><\/td>\n0.04%<\/b><\/td>\n0.6%<\/i><\/b><\/td>\n1.6%<\/i><\/b><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n
Financial Advisory Services based on ValuEngine research available: \u00a0<\/b>www.ValuEngineCapital.com<\/b><\/a><\/h5>\n

Our conclusions:<\/p>\n

    \n
  1. These technology stocks are all highly volatile and only <\/span>NVDA <\/b>pays a dividend but even that is minimal with a yield of less than 0.1%.<\/span><\/li>\n
  2. WIX<\/b> is the least volatile and <\/span>NVDA <\/b>is the most volatile stock. <\/span>WIX <\/b>is also the most undervalued by our model and has the largest projected one-year price appreciation from the predictive model.\u00a0 <\/span>UI <\/b>is rated second in both valuation and forecast price appreciation.\u00a0 Both amounts are a very close second to <\/span>WIX.\u00a0 <\/b>\u00a0<\/span><\/li>\n
  3. Although technology stocks may continue to drive the market during the remainder of 2023, the model\u2019s predictive ratings of the semiconductor and technology ETFs along with the Strong Sell rating for <\/span>NVDA<\/b> suggest that active traders may want to ease up on those positions in favor of other S&P 500 sectors.\u00a0 For those staying in the sector, the model suggests focusing on software, not hardware.\u00a0\u00a0<\/span><\/li>\n
  4. Quantitative models, even ours, have limitations.\u00a0 Chief among them is not knowing when paradigm shifts are about to occur.\u00a0 One reason that some software and cloud technology companies may appear relatively undervalued is that the AI-focused market considers many of these companies vulnerable to being made obsolete given the more dynamic solutions that may be offered in the future by AI.\u00a0\u00a0<\/span><\/li>\n<\/ol>\n

    __________________________________________________________________________<\/span><\/p>\n

    By Herbert Blank<\/b><\/h5>\n
    Senior Quantitative Analyst, ValuEngine Inc<\/b><\/h5>\n
    www.ValuEngine.com<\/b><\/a><\/h5>\n
    support@ValuEngine.com<\/b><\/h5>\n
    All of the approximately 5,000 stocks, 16 sector groups, 140 industries, and 600 ETFs have been updated on<\/b> www.ValuEngine.com<\/b><\/a><\/h5>\n
    Financial Advisory Services based on ValuEngine research available through<\/b> ValuEngine Capital Management, LLC<\/b><\/a><\/h5>\n
    Free Two Week Trial to all 5,000 plus equities covered by ValuEngine<\/b> HERE<\/b><\/a><\/h5>\n

    Subscribers log in<\/b> HERE<\/b><\/a><\/p>\n

     <\/p>\n","protected":false},"excerpt":{"rendered":"

    The US Stock Market, led by technology, has outperformed most expectations this year. Going into Memorial Day weekend, SPY, the most popular S&P 500 ETF, has risen more than 10%. That\u2019s a very impressive number in the face of many of the best-known strategists predicting a down year for the major index in 2023.\u00a0\u00a0 As … Read more<\/a><\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4,130,39],"tags":[2138,2214,1755,2145,1716,2174,2215,1760,1761,1719,2223,2206,2209,2211,2221,1731,2208,2210,2222,2213,371,2224,1770,77,2227,2167,2225,2205,2207,2219,1617,2170,1713,2228,2202,2220,2203,2164,2216,2204,2226,1656,2009,85,2168,1887,2212,2169,2217,2218,2165],"_links":{"self":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3153"}],"collection":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/comments?post=3153"}],"version-history":[{"count":5,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3153\/revisions"}],"predecessor-version":[{"id":3158,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/posts\/3153\/revisions\/3158"}],"wp:attachment":[{"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/media?parent=3153"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/categories?post=3153"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.valuengine.com\/index.php\/wp-json\/wp\/v2\/tags?post=3153"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}