JHere are today’s updates for Validea’s growth investor model based on Martin Zweig’s published strategy. This strategy seeks growth stocks with persistently accelerating earnings and sales growth, reasonable valuations and low leverage.
WAYSIDE TECHNOLOGY GROUP, INC. (WSTG) is a small-cap value stock in the computer hardware industry. The rating under our Martin Zweig-based strategy rose from 82% to 89% based on underlying company fundamentals and stock valuation. A score of 80% or higher generally indicates that the strategy has some interest in the stock and a score above 90% generally indicates strong interest.
Company Description: Wayside Technology Group, Inc. is a value-added information technology (IT) distribution and solutions company. The Company’s segments include Distribution segment, which distributes technical software to enterprise resellers, value-added resellers (VARs), consultants and system integrators worldwide under the name Climb Channel Solutions; and Solutions, which is a cloud solutions provider and value-added reseller of software, hardware and services to customers worldwide under the TechXtend and Gray Matter names. It provides cloud technology solutions through its Climb, TechXtend, Gray Matter and Cloud Know How operating segments. Climb is a specialist technology distributor focused on data canter and cloud-based products. TechXtend is a value-added reseller of software, hardware, and services for US and Canadian businesses, government organizations, and academic institutions. Gray Matter is a UK-based software reseller and cloud service provider.
The following table summarizes whether the stock meets each of the tests for this strategy. Not all of the criteria in the table below are given the same weight or are independent, but the table provides a brief overview of the stock’s strengths and weaknesses in the context of the strategy’s criteria.
| P/E RATIO: | PASS |
| REVENUE GROWTH VS EPS GROWTH: | TO FAIL |
| SALES GROWTH RATE: | PASS |
| CURRENT QUARTER BENEFITS: | PASS |
| QUARTERLY PROFITS FROM A YEAR AGO: | PASS |
| POSITIVE GROWTH RATE OF RESULTS FOR THE CURRENT QUARTER: | PASS |
| EARNINGS GROWTH RATE OVER THE LAST SEVERAL QUARTER: | PASS |
| EPS GROWTH FOR THE CURRENT QUARTER MUST BE HIGHER THAN THE PREVIOUS 3 QUARTERS: | PASS |
| EPS GROWTH FOR THE CURRENT QUARTER MUST BE ABOVE HISTORICAL GROWTH RATE: | PASS |
| PERSISTENCE OF BENEFITS: | TO FAIL |
| LONG-TERM EPS GROWTH: | PASS |
| TOTAL DEBT/EQUITY RATIO: | PASS |
| INSIDER TRADING: | PASS |
Detailed analysis of WAYSIDE TECHNOLOGY GROUP, INC.
Full Guru Analysis for WSTG
Full factor ratio for WSTG
More details on Validea’s Martin Zweig strategy
About Martin Zweig: Over the 15 years of tracking, Zweig’s stock recommendation newsletter has returned an average of 15.9% per year, during which time it was ranked number one based on risk-adjusted returns by Hulbert Financial Digest . Zweig has managed both mutual funds and hedge funds during his career, and he’s put the fortune he amassed to good use. He’s owned what Forbes has reported to be New York’s most expensive apartment, a $70 million penthouse that sits atop Manhattan’s Pierre Hotel, and he’s a collector of all manner of pop culture. and historical memorabilia – among his purchases are the gun used by Clint Eastwood in ‘Dirty Harry’, a stock certificate signed by Commodore Vanderbilt, and even two old-fashioned gas pumps similar to the ones he had seen at a nearby gas station while growing up in Cleveland, according to published reports.
About Validea: Validea is an investment research service that tracks 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 on 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.
