Validea's Leading IT Stocks According to Joel Greenblatt - 8/18/2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 18 2025
0mins
Source: NASDAQ.COM
Top Rated IT Stocks: Validea's Earnings Yield Investor model highlights HP Inc., Western Digital Corp., MicroStrategy Inc., Cognizant Technology Solutions Corp., and Leidos Holdings Inc. as top-rated stocks based on Joel Greenblatt's investment strategy.
HP Inc. Overview: HP Inc. received a 100% rating, indicating strong interest due to its fundamentals in personal computing and printing solutions across various segments.
Western Digital Corp. Overview: With a 90% rating, Western Digital specializes in data storage devices and solutions, catering to diverse markets including cloud and consumer sectors.
MicroStrategy and Cognizant Ratings: Both MicroStrategy and Cognizant Technology Solutions scored 80%, focusing on software development and technology services, with MicroStrategy notably investing heavily in Bitcoin.
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Analyst Views on HPQ
Wall Street analysts forecast HPQ stock price to rise
14 Analyst Rating
1 Buy
10 Hold
3 Sell
Hold
Current: 24.430
Low
20.00
Averages
25.30
High
30.00
Current: 24.430
Low
20.00
Averages
25.30
High
30.00
About HPQ
HP Inc. is a global provider of sustainable devices, services and subscriptions for personal computing (PC), printing, three-dimensional (3D) printing, hybrid work, gaming and other related technologies. The Company's segments include Personal Systems, Printing and Corporate Investments. Its Personal Systems segment offers desktops, notebooks, and workstations, thin clients, retail point-of-sale (POS) systems, displays, hybrid systems, software, solutions including endpoint security and services. Its Printing segment provides consumer and commercial printer hardware, supplies, services and solutions. Printing is also focused on graphics and 3D printing and personalization in the commercial and industrial markets. Its Corporate Investments segment includes certain business incubation and investment projects. Its security solutions provide layered resiliency using features such as containment and isolation technology as well as artificial intelligence (AI) deep learning.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Inflation Data Focus: Investors are closely watching the upcoming personal consumption expenditures data, which is the Fed's preferred inflation measure, as it could alter interest rate expectations under new chair Kevin Warsh's leadership.
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- Strong Personal Systems Performance: Personal systems revenue increased by 13% year-over-year, driven by robust demand in both commercial and consumer segments, indicating the success of the company's strategy in high-end products and service expansion.
- Gross Margin Improvement: Gross margin reached 20.9%, up year-over-year, primarily due to favorable pricing strategies and contributions from key growth areas, further solidifying the company's profitability.
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- Personal Systems Performance: The Personal Systems segment saw a 13% year-over-year revenue growth, with robust performance in both commercial and consumer markets, while the shipment mix of AI PCs increased from 35% to 44%, reflecting the company's proactive positioning in the technological shift.
- Cash Flow and Shareholder Returns: The company generated over $900 million in cash from operations this quarter and returned nearly $400 million to shareholders through dividends and share repurchases, showcasing strong financial health and commitment to shareholder value.
- Future Outlook: Management expects diluted earnings per share for fiscal year 2026 to range between $2.90 and $3.10, maintaining confidence in future profitability despite rising input cost pressures, with Q4 anticipated to be a trough for margins.
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