1/04/2013

20 Hottest Technology Stocks | Best Stock Buy Rating List

Technology stocks with highest buy ratings originally published at "long-term-investments.blogspot.com". Technology fascinates us all also if we are not real techies who wants the latest stuff whatever it costs.

Technology stocks also made many people very rich. Some of the wealthiest and youngest persons in this world made their wealth on the internet or in related industries. I don’t talk about the Page brothers from Google, Facebook's Zuckerberg or Bill Gates.

This alone is a reason why we should observe the technology sector because there is a huge potential of growth at limited cots. Today, I like to proceed with my January research of the most recommended stocks and I do this at the technology sector.


Below is a small list with some fundamentals about tech stocks with the highest buy rating. I excluded stocks with a market capitalization below USD 2 billion because I think the risk should be much higher as for mid-capitalized stocks.

These are the results: Eleven of the best to buy rated stocks pay dividends; nine have a strong buy rating.

Here are my favorite stocks:
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China Telecom (NYSE:CHA) has a market capitalization of $45.42 billion. The company employs 309,799 people, generates revenue of $39.331 billion and has a net income of $2.664 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $11.981 billion. The EBITDA margin is 30.46 percent (the operating margin is 9.85 percent and the net profit margin 6.77 percent).

Financial Analysis: The total debt represents 12.43 percent of the company’s assets and the total debt in relation to the equity amounts to 20.35 percent. Due to the financial situation, a return on equity of 6.58 percent was realized. Twelve trailing months earnings per share reached a value of $3.11. Last fiscal year, the company paid $1.12 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.02, the P/S ratio is 1.15 and the P/B ratio is finally 1.10. The dividend yield amounts to 1.95 percent and the beta ratio has a value of 0.83.


”Long-Term
Long-Term Stock History Chart Of China Telecom (CHA)
”Long-Term
Long-Term Dividends History of China Telecom (CHA)
”Long-Term
Long-Term Dividend Yield History of China Telecom (CHA)

BT Group (NYSE:BT) has a market capitalization of $30.23 billion. The company employs 89,000 people, generates revenue of $30.435 billion and has a net income of $3.226 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9.487 billion. The EBITDA margin is 31.17 percent (the operating margin is 15.45 percent and the net profit margin 10.60 percent).

Financial Analysis: The total debt represents 43.79 percent of the company’s assets and the total debt in relation to the equity amounts to 808.48 percent. Due to the financial situation, a return on equity of 124.27 percent was realized. Twelve trailing months earnings per share reached a value of $4.24. Last fiscal year, the company paid $1.34 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.04, the P/S ratio is 1.00 and the P/B ratio is finally 14.30. The dividend yield amounts to 3.62 percent and the beta ratio has a value of 1.29.


”Long-Term
Long-Term Stock History Chart Of BT Group (BT)
”Long-Term
Long-Term Dividends History of BT Group (BT)
”Long-Term
Long-Term Dividend Yield History of BT Group (BT)

Activision Blizzard (NASDAQ:ATVI) has a market capitalization of $12.25 billion. The company employs 7,300 people, generates revenue of $4.755 billion and has a net income of $1.085 billion. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1.475 billion. The EBITDA margin is 31.02 percent (the operating margin is 27.93 percent and the net profit margin 22.82 percent).

Financial Analysis: The company has no long-term debt. Due to the financial situation, a return on equity of 10.33 percent was realized. Twelve trailing months earnings per share reached a value of $0.78. Last fiscal year, the company paid $0.16 in the form of dividends to shareholders.

Market Valuation: Here are the price ratios of the company: The P/E ratio is 14.12, the P/S ratio is 2.58 and the P/B ratio is finally 1.19. The dividend yield amounts to 1.63 percent and the beta ratio has a value of 0.51.


”Long-Term
Long-Term Stock History Chart Of Activision Blizzard (ATVI)
”Long-Term
Long-Term Dividends History of Activision Blizzard (ATVI)
”Long-Term
Long-Term Dividend Yield History of Activision Blizzard (ATVI)


Take a closer look at the full list of the best recommended technology stocksThe average P/E ratio amounts to 24.43 and forward P/E ratio is 20.50. The dividend yield has a value of 1.13 percent. Price to book ratio is 5.32 and price to sales ratio 3.05. The operating margin amounts to 13.38 percent and the beta ratio is 1.07. Stocks from the list have an average debt to equity ratio of 1.25. If we exclude BT Group, the value is at 0.3.

Here is the full table with some fundamentals (TTM):

20 Most Recommended Technology Stocks (Click to enlarge)

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Related stock ticker symbols:
KNM, NTT, SPIL, SATS, SNPS, MCRS, A, AZPN, BT, CDNS, QIHU, ATVI, FEIC, IPGP, CHA, CHU, TEL, CTRX, CTSH, DST

Selected Articles:

* I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I receive no compensation to write about any specific stock, sector or theme.

1 comment:

  1. Anonymous1/04/2013

    The Long Term Debt/Equity Ratio illustrates how aggressively a company is financing its growth via debt. The more debt financing that is used in a capital structure, the more volatile earnings can become due to the additional interest expense. Should a company's potentially enhanced earnings fail to exceed the cost associated with debt financing over time, this can lead the company toward substantial trouble. Debt is normally not relevant for tech stocks but for telecoms which are also part of the sector. I dont't agree with BT and China Telecom.

    ReplyDelete

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