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:
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 Stock History Chart Of China Telecom (CHA) |
| Long-Term Dividends History of China Telecom (CHA) |
| 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 Stock History Chart Of BT Group (BT) |
| Long-Term Dividends History of BT Group (BT) |
| 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 Stock History Chart Of Activision Blizzard (ATVI) |
| Long-Term Dividends History of Activision Blizzard (ATVI) |
| Long-Term Dividend Yield History of Activision Blizzard (ATVI) |
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| 20 Most Recommended Technology Stocks (Click to enlarge) |


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.
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