All Entries Tagged With: "Tech Stocks"
Top Five Tech Stocks to Invest In
A couple of weeks ago I wrote about how Tech stocks historically outperform during the fall and gave my Top 10 picks. In addition, here are five more stock picks that I
believe will also climb higher.
Intel Corporation (INTC) – Earnings were outstanding (2nd Quarter sales jumped 34%) along with optimistic long-term projections. Intel hones a tremendous balance sheet with over $17 billion dollars in cash and less than $3 billion in debt. Their P/E ratio is trading historically low right now (currently at 10; historically trades around 20). Quarter after quarter Intel has destroyed analyst estimates and guided future prospects higher. Intel has monopolized the computer business; regardless of Mac or PC, it uses an Intel Chip. Don’t expect this trend to stop anytime soon, meaning Intel can easily rise to $28-$29.
NVIDIA (NVDA) – NVDA sell microchips – and lots of them. This stock has transformed its business turning a $200 million loss in the first quarter of 2009 into a $138 million profit a year later in Q1 2010. Based on book value, NVDA is cheap. With a PEG of 0.8 and P/E of 12 the firm is discounted significantly compared to it’s peer competitors. Throughout the past year they have significantly trailed the sector, but heading into the fall I think NVDA will soar to $20.
Corning (GLW) – As a manufacturer of specialty glass for many technology companies (most notably the Gorilla Glass used in the iPhone 4), GLW is extremely undervalued. Currently, shares are trading at 8 times next year’s earnings. Historically though they have traded at close to 15. Adding to this, the company projects a grow rate of 12% over the next five years. GLW holds a strong balance sheet with $4 billion in cash while generating millions more. Expect this stock to rise to around $25.
Thermo Fisher Scientific (TMO) – TMO sells analytical instruments. After a successful first quarter where profits rose 55%, TMO looks to continue the streak. TMO’s P/E ratio of 13 reflects a significant discount compared to industry averages, making a strong case for TMO to rise to $65.
Formula Systems (FORTY) – FORTY is an Israel-based software and IT company. Recently, they have been on a tear with first quarter profits soaring 42%. This past year the stock has soared, but don’t expect this trend to stop anytime soon. With a P/E ratio of 12, this stock has become a clear “BUY.” The 10% dividend it pays out is not bad either.
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The Start of Earning Season: What to Expect from GOOG, GS, & IBM
As we enter the start of earning season many people are nervous on what to expect and whether or not earnings alone can rally us into another bull market. Should be an interesting first week, here are my Top 3 Most Important Earnings Reports:
Google (GOOG) – If anyone doubts the Internet King, think again. Google has been rallying since all year up 80% ytd. Google has the momentum behind them with three recent upgrades that I am sure they will come through and crush the earnings report and report a positive long-term outlook. I think we are starting to see a resurgence in Ad spending that will send Google to $600.
Goldman Sachs (GS) – Goldman, the cream of the crop when it comes to investment banks. Up 175% ytd and I don’t see them stopping anytime soon. With M&A activity picking up along with large trading gains $200 is inevitable. Look for them to report amazing numbers.
International Business Machines (IBM) – Fall is always a bull market for Tech stocks and I see nothing different this year. We saw IBM soar on Friday look for them to continue the streak leading to the report. With strong recent upgrades, a clean balance sheet, and a good-looking P/E the future looks good.
