Validea’s Price/Sales Investor Model Upgrades – Based on Kenneth Fisher’s Strategy (June 2024)
Today, we highlight the latest upgrades for Validea’s Price/Sales Investor model, which is based on the published strategy of renowned investor Kenneth Fisher. This value-oriented strategy favors stocks exhibiting low price-to-sales (P/S) ratios, strong long-term profit growth, robust free cash flow, and consistent profit margins.
Lantronix Inc (LTRX) – Communications Equipment Industry
Lantronix Inc. (LTRX) is a small-cap value stock operating in the Communications Equipment sector. According to our valuation model inspired by Kenneth Fisher’s approach, the rating for LTRX has improved from 58% to 70%. This upgrade reflects enhancements in the firm’s underlying fundamentals and an attractive stock valuation.
What do these ratings mean? A score of 80% or higher usually signals some interest by the strategy in the stock, while a rating above 90% typically indicates strong conviction.
Company Overview
Lantronix Inc. specializes in compute and connectivity Internet of Things (IoT) solutions, targeting industries such as smart cities, automotive, and enterprise markets. The company’s products and services help businesses capitalize on the growing IoT market by delivering customizable solutions that address every layer of the IoT stack.
Lantronix’s offerings include intelligent substation infrastructure, infotainment systems, and video surveillance, complemented by advanced out-of-band management (OOB) solutions for cloud and edge computing environments. Its technologies enable ultra-fast Ethernet-to-cellular and Wi-Fi machine connectivity, even in demanding conditions.
The product portfolio includes Embedded IoT Modules, IoT System Solutions, Software and Engineering Services. Key products comprise Edge AI gateways, OOB management tools, network infrastructure, industrial IoT solutions, system-on-modules (SoMs), and developer kits. A notable product is the SmartLV, an AI-enabled IoT Edge Compute Cellular Gateway powered by the Qualcomm IQ-615 processor.
Strategy Test Summary for Lantronix Inc.
| Criteria | Result |
|---|---|
| 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 |
While Lantronix passes several key financial metrics, including valuation and free cash flow, it falls short on some growth and profitability measures according to the strategy’s criteria.
Just Eat Takeaway.com NV ADR (JTKWY) – Business Services Industry
Just Eat Takeaway.com NV (JTKWY) is a mid-cap value stock in the Business Services sector. The company’s rating under the Kenneth Fisher-based model moved from 58% to 70% due to improvements in fundamentals and stock valuation.
As with Lantronix, a score near 70% indicates moderate interest, while 80%+ suggests the strategy is more confidently favorable toward the stock.
Company Overview
Formerly known as Takeaway.com NV, Just Eat Takeaway.com is a Netherlands-based company operating a leading online food delivery marketplace. It connects consumers with restaurants, allowing users to order meals for home delivery.
The platform facilitates order transmission from customers to restaurants, which prepare and deliver the food. Just Eat Takeaway.com operates across multiple countries, including Portugal, Switzerland, Austria, Luxembourg, Belgium, the Netherlands, Germany, Poland, Bulgaria, Romania, Israel, and Vietnam.
Its websites include Lieferando.de, Lieferservice.at, Lieferservice.ch, Pizza.be, Pizza.lu, Pizza.pl, Pyszne.pl, BGmenu.com, Oliviera.ro, Takeaway.com, Thuisbezorgd.nl, and Vietnammm.com, featuring a wide variety of restaurants.
Strategy Test Summary for Just Eat Takeaway.com
| Criteria | Result |
|---|---|
| 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 |
Similar to Lantronix, Just Eat Takeaway.com passes certain valuation and cash flow tests but falls short on some growth and profitability criteria under this strategy.
About Kenneth Fisher
Kenneth Fisher, son of Philip Fisher—the “Father of Growth Investing”—is a distinguished money manager, bestselling author, and longtime Forbes columnist. In the mid-1980s, Fisher gained attention on Wall Street with his book Super Stocks, which popularized the use of the price-to-sales ratio (PSR) as a tool for identifying attractive investment opportunities.
Aside from investing, Fisher is noted as a leading expert on 19th-century logging. His firm, Fisher Investments, is headquartered in a forest preserve in Woodside, California, where Fisher and his team seek to distance themselves from conventional Wall Street thinking.
About Validea
Validea is an investment research service that tracks the published strategies of legendary investors. It provides both stock analysis and model portfolios based on gurus who have historically outperformed the market—such as Warren Buffett, Benjamin Graham, Peter Lynch, Martin Zweig, and Kenneth Fisher.
For more information about Validea, please click here.
Disclaimer: The views and opinions expressed herein are those of the author and do not necessarily reflect the official policy or position of Nasdaq, Inc.
https://www.nasdaq.com/articles/validea-kenneth-fisher-strategy-daily-upgrade-report-10-18-2025
About the Author
