3 Tech Stocks to Satisfy Your Thirst for Gains

: CAJPY | Canon Inc. ADR News, Ratings, and Charts

CAJPY – The technology hardware market is experiencing significant growth thanks to growing IT spending, the adoption of new cutting-edge technologies, and increasing reliance on digital technologies. Therefore, investors could consider buying quality tech stocks Nidec (NJDCY), Lenovo Group (LNVGY), and Canon (CAJPY) for solid gains. Read on…

The tech industry’s growth is driven by the digitization of various sectors and the ever-rising dependence on digital solutions. These factors have been a significant growth driver for advanced hardware solutions. With the adoption of newer, more advanced technologies and workloads becoming heavier, the demand for cutting-edge hardware is expected to grow significantly.

Against this backdrop, investors could consider buying fundamentally strong tech stocks such as Nidec Corporation (NJDCY), Lenovo Group Limited (LNVGY), and Canon Inc. (CAJPY) to satisfy their thirst for gains. Before diving deeper into the fundamentals of these stocks, let’s first understand what’s shaping the tech industry’s prospects.

Gartner’s recent forecast predicts global IT spending to reach $5.06 trillion in 2024, representing an 8% uptick from the previous year. This new estimate is higher than its earlier estimate of 6.8%. The forecast suggests that worldwide IT spending is on track to exceed $8 trillion well before the end of the decade. Gartner expects device spending to rise 3.6% year-over-year to $687.94 billion.

Businesses belonging to various sectors have started digitizing their operations to enhance delivery and improve efficiency, thereby contributing to the growth of the IT hardware market.

With GenAI’s immense popularity and potential, individuals and businesses want to employ it in daily operations. To train large language models (LLMs), one requires considerable computational resources for training and inference, thus driving the demand for high-performance hardware, such as CPUs, GPUs, etc.

Moreover, the evolution of new technologies like 5G, the Internet of Things, and edge computing has fueled the demand for cutting-edge hardware to support their highly complex processing needs.

Furthermore, the demand for new hardware devices has increased rapidly, owing to the declining average lifespan of devices and new features in hardware tools that encourage consumers to stay updated with the ongoing trends. The IT Hardware Market is projected to reach $191.03 billion by 2029, growing at a 7.9% CAGR.

Considering these conducive trends, let’s examine the fundamentals of the three featured Technology – Hardware stocks, beginning with the third choice.

Stock #3: Nidec Corporation (NJDCY)

Headquartered in Kyoto, Japan, NJDCY develops, manufactures, and sells motors, electronics and, optical components, and other related products in Japan and internationally.

In terms of forward EV/Sales, NJDCY is trading at 1.77x, 1.2% lower than the industry average of 1.79x. The stock’s trailing-12-month Price/Book of 2.44x is 11.6% lower than the industry average of 2.76x.

NJDCY’s net sales and gross profit for the fiscal year that ended March 31, 2024, increased 4.7% and 20.4% over the prior-year quarter to ¥2.35 trillion ($15.20 billion) and ¥497.61 billion ($3.22 billion), respectively.

For the same year, its profit attributable to owners of the parent and earnings per share attributable to owners of the parent stood at ¥125.39 billion ($811.54 million) and ¥218.22, up 178.9% and 179.3% year-over-year, respectively.

For the quarter ending September 30, 2024, NJDCY’s revenue is expected to increase 1.3% year-over-year to $4.03 billion. Its EPS for fiscal 2025 is expected to increase 62.2% year-over-year to $0.57. It surpassed consensus revenue estimates in each of the trailing four quarters. The stock has gained 24.3% over the past three months to close the last trading session at $11.49.

NJDCY’s POWR Ratings reflect its positive prospects. It has an overall B rating, equating to Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 distinct factors, with each factor weighted to an optimal degree.

NJDCY has an A grade for Stability and a B for Value and Quality. Within the B-rated Technology – Hardware industry, it is ranked #15 out of 37 stocks. Click here for the additional POWR Ratings for NJDCY (Growth, Momentum, and Sentiment).

Stock #2: Lenovo Group Limited (LNVGY)

Headquartered in Quarry Bay, Hong Kong, LNVGY develops, manufactures, and markets technology products and services. It operates through the segments of Intelligent Devices Group, Infrastructure Solutions Group, and Solutions and Services Group.

In terms of forward EV/EBITDA, LNVGY is trading at 5.57x, 63.1% lower than the industry average of 15.10x. The stock’s forward Price/Sales of 0.27x is 90.6% lower than the industry average of 2.83x. Similarly, its forward EV/Sales is trading at 0.29x, 89.7% lower than the industry average of 2.84x.

On May 2, 2024, LNVGY launched its new AI-based Cyber Resiliency as a Service (CRaaS), leveraging Lenovo device telemetry and Microsoft security software solutions to offer comprehensive cyber protection, detection, response, and recovery for businesses. This addresses growing security concerns and aids business continuity.

For the fiscal third quarter that ended December 31, 2023, LNVGY’s revenue increased 3% year-over-year to $15.72 billion. Its gross profit stood at $2.60 billion. For the same quarter, its non-HKFRS profit attributable to equity shareholders and EPS stood at $357 million and 2.64 cents, respectively.

Analysts expect LNVGY’s revenue for the quarter that ended March 31, 2024, to increase 4.2% year-over-year to $13.16 billion. Its EPS for the year ending March 31, 2025, is expected to grow 38.3% year-over-year to $1.94. The company surpassed Street revenue estimates in three of the trailing four quarters. Over the past year, the stock has gained 17.8%, closing the last trading session at $24.04.

LNVGY’s POWR Ratings reflect this promising outlook. It has an overall rating of B, equating to Buy in our proprietary rating system.

LNVGY has an A grade for Value and a B for Momentum. It is ranked #14 in the same industry. Beyond what we stated above, we have also given LNVGY grades for Growth, Stability, Sentiment, and Quality. Get all the LNVGY ratings here.

Stock #1: Canon Inc. (CAJPY)

Headquartered in Tokyo, Japan, CAJPY manufactures and sells office multifunction devices (MFDs), laser and inkjet printers, cameras, medical equipment, and lithography equipment worldwide. The company operates through the Printing Business Unit, Imaging Business Unit, Medical Business Unit, Industrial Business Unit, and Others segments.

In terms of forward EV/Sales, CAJPY is trading at 1.08x, 62.1% lower than the industry average of 2.84x. The stock’s forward Price/Sales of 0.97x is 65.8% lower than the industry average of 2.83x. Similarly, its forward EV/EBIT is trading at 8.95x, 57.1% lower than the industry average of 20.84x.

CAJPY’s net sales for the fiscal first quarter that ended March 31, 2024, increased 1.8% over the year-ago value to ¥988.52 billion ($6.40 billion). Its gross profit rose 5.4% year-over-year to ¥478.44 billion ($3.10 billion).

Moreover, its net income attributable to CAJPY stood at ¥59.95 billion ($388 million), up 6.3% over the prior-year quarter. Also, its net income attributable to CAJPY shareholders per share grew 9.3% year-over-year to ¥60.67.

Street expects CAJPY’s revenue for the quarter ending September 30, 2024, to increase 2% year-over-year to $6.95 billion. CAJPY’s stock has gained 17.6% over the past year to close the last trading session at $27.93.

CAJPY’s strong fundamentals are reflected in its POWR Ratings. It has an overall rating of B, equating to Buy in our proprietary rating system.

It has a B grade for Value, Momentum, Stability, and Quality. It is ranked #10 in the Technology – Hardware industry. In total, we rate CAJPY on eight different levels. Too see CAJPY’s Growth and Sentiment ratings click here.

What To Do Next?

43 year investment veteran, Steve Reitmeister, has just released his 2024 market outlook along with trading plan and top 11 picks for the year ahead.

2024 Stock Market Outlook >


CAJPY shares were trading at $27.77 per share on Wednesday morning, down $0.16 (-0.57%). Year-to-date, CAJPY has gained 8.48%, versus a 9.06% rise in the benchmark S&P 500 index during the same period.


About the Author: Neha Panjwani


From her school days, Neha harbored a profound fascination for finance, a passion that steered her toward a career as an investment analyst following the completion of her bachelor's degree in commerce. Currently enrolled in the CFA program, Neha is dedicated to further enriching her comprehension of investment fundamentals. Neha's primary objective is to aid retail investors in discerning optimal investment opportunities by diligently evaluating crucial aspects of financial instruments, with a primary focus on stocks and ETFs. Her commitment lies in empowering individuals to make informed and strategic investment decisions in the dynamic world of finance. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CAJPYGet RatingGet RatingGet Rating
NJDCYGet RatingGet RatingGet Rating
LNVGYGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


These 5 Economic Reports Hold the Key for Stocks

Thanks to signs of easing inflation in May we have enjoyed a rally for stocks with the S&P 500 (SPY) making new all time highs. What happens next for stocks very much is tied to the results for these 5 upcoming economic reports. Steve Reitmeister previews these announcements with keys to what stocks do next. Read it all in the full article below...

4 Software Stocks Primed for Major Upside in 2024

The software industry is thriving, buoyed by digital transformation, soaring demand for cloud solutions, and the integration of advanced technologies like AI and ML, presenting lucrative opportunities for savvy investors. So, let’s look at tech stocks SS&C Technologies (SSNC), Informatica (INFA), Verint Systems (VRNT), and Yext (YEXT) poised for significant upside in 2024. Read on…

3 Pharma Stocks Primed for May Investment Opportunities

The pharma industry is poised for tremendous growth driven by surging healthcare needs, the introduction of groundbreaking medications, and relentless technological innovation. Hence, quality pharma stocks Collegium Pharmaceutical (COLL), Green Thumb Industries (GTBIF), and Bristol-Myers Squibb (BMY) emerge as prime investment options this month. Read more…

3 Bargain Internet Stock Buys for Savvy Investors

The increased internet penetration is reshaping various industries, driving digital transformation, connectivity, and access to services like e-commerce, remote work, and online entertainment. Thus, robust internet stocks Jamf Holding (JAMF), Upwork (UPWK), and TrueCar (TRUE), which are trading at discounts to their peers, could be ideal buys. Keep reading…

Will Stocks Continue to Rise...Or Time for Rug Pull?

It’s hard not to celebrate each new high for the S&P 500 (SPY). Yet with high inflation not dead and buried then perhaps this stock market celebration is a tad early. That is why you need to hear what 44 year investment veteran Steve Reitmeister is saying about what comes next for the stock market and how to stay on the right side of the action. Read on below for more...

Read More Stories

More Canon Inc. ADR (CAJPY) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CAJPY News