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03 April
Validea's Top Information Technology Stocks Based On Warren Buffett - 4/3/2024

The following are the top rated Information Technology stocks according to Validea's Patient Investor model based on the published strategy of Warren Buffett. This strategy seeks out firms with long-term, predictable profitability and low debt that trade at reasonable valuations.

INFOSYS LTD ADR (INFY) is a large-cap growth stock in the Computer Services industry. The rating according to our strategy based on Warren Buffett is 79% 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: Infosys Limited is an India-based company, which provides consulting, technology, outsourcing and digital services. Its segments include Financial Services; Retail; Communication; Energy, Utilities, Resources and Services; Manufacturing; Hi-Tech; Life Sciences and All other segments. All other segments represent the operating segments of businesses in India, Japan, China, Infosys Public Services and other enterprises in public services. Its core services primarily include application management services, proprietary application development services, independent validation solutions, product engineering and management, infrastructure management services, traditional enterprise application implementation, support and integration services. Its products and platforms include Finacle, Edge Suite of products, Panaya platform, Infosys Equinox, Infosys Helix, Infosys Applied AI, Infosys Cortex, Stater digital platform, Infosys McCamish and others. It also owns Danske Bank's IT center in India.

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.

Detailed Analysis of INFOSYS LTD ADR

WIPRO LTD (ADR) (WIT) is a large-cap growth stock in the Computer Services industry. The rating according to our strategy based on Warren Buffett is 72% 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: Wipro Limited is a technology services and consulting company. The Company operates through two segments: Information Technology (IT) Services, and IT Products. IT Services segment provides a range of IT and IT enabled services which include digital strategy advisory, customer centric design, technology consulting, IT consulting, custom application design, re-engineering and maintenance, systems integration, package implementation, cloud and infrastructure services, business process services, cloud, mobility and analytics services, research and development and hardware and software design. The IT Products segment provides a range of third-party IT products, which allows it to offer IT system integration services. These products include computing, platforms and storage, networking solutions, and software products. Its services include Applications, Artificial Intelligence, Business Process, Cloud, Consulting, Data & Analytics, Digital Experiences, Engineering, And Sustainability.

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.

Detailed Analysis of WIPRO LTD (ADR)

AMDOCS LTD (DOX) is a large-cap growth stock in the Software & Programming industry. The rating according to our strategy based on Warren Buffett is 65% 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: Amdocs Limited is a provider of software and services to communications and media companies. The Company's offerings are based on a product and service mix, using technologies and methodologies such as fifth generation (5G) cloud, microservices, development and operations (DevOps), open source, bimodal operations, site reliability engineering (SRE) and automation through standard information technology (IT) tools, open application programming interfaces (APIs) and artificial intelligence (AI). The Company's services include end-to-end systems integration services, managed services, digital business operations, quality engineering services, cloud services, consulting services, and integration services. In addition, the Company also provides advertising and media offerings for media publishers, television (TV) networks, video streaming providers, advertising agencies and service providers. Its service assurance suite includes fault, performance, and service management capabilities.

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.

Detailed Analysis of AMDOCS LTD

About Warren Buffett: Warren Buffett is considered by many to be the greatest investor of all time. As the chairman of Berkshire Hathaway, Buffett has consistently outperformed the S&P 500 for decades, and in the process has become one of the world's richest men. (Forbes puts his net worth at $37 billion.) Despite his fortune, Buffett is known for living a modest lifestyle, by billionaire standards. His primary residence remains the gray stucco Nebraska home he purchased for $31,500 nearly 50 years ago, according to Forbes, and his folksy Midwestern manner and penchant for simple pleasures -- a cherry Coke, a good burger, and a good book are all near the top of the list -- have been well-documented.

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.