The meme-inspired cryptocurrency Dogecoin has attracted attention in the past couple of weeks. Although it caught the attention of investors for its crypto-craze-driven rally, its advance is probably not sustainable because of its deficiencies as a real-world digital currency. Even if cryptocurrencies in general eventually become mainstream, Dogecoin may not become widely accepted due its high volatility and limited market presence.
Putting the hype to one side, a much better and safer option for investors now is in technology stocks. They are buoyed by increasing demand for next-generation technologies. The tech industry enjoys favorable investor sentiment, as evidenced by Technology Select Sector SPDR Fund ETF’s (XLK) 54.3% returns over the past year, compared to SPDR S&P 500 ETF Trust’s (SPY) 43.3% gains over this period. Surging demand for electronic devices, coupled with the need for good connectivity and performance, has further accelerated the technology industry’s growth. The global market for big data technology is expected to grow at a 14% CAGR of 14% over the next six years to reach $116.07 billion in 2027.
Intel Corporation (INTC)
INTC is a manufacturer and seller of essential technologies for the cloud, smart, and connected devices for retail, industrial, and consumer uses worldwide. It operates through DCG, IOTG, Mobileye, NSG, PSG, CCG, and All Other segments. The company also has a strategic partnership with MILA to develop and apply advances in artificial intelligence (AI) methods for enhancing medical research.
This month, INTC teamed with Samsung on the new Galaxy Book Pro series to deliver innovative and advanced experiences across connectivity and performance. Together, the companies have co-engineered a new family of PCs that meets all the verified standards the Evo platform promises, such as industry-leading responsiveness, instant wake, and long battery life. The collaboration should solidify INTC’s position in the market and boost its revenues.
Also, this month Intel Threat Detection Technology collaborated with Microsoft, Inc. (MSFT) on integrating Microsoft Defender for Endpoint with INTC’s silicon-based threat detection. The partnership should help further accelerate endpoint detection and response against crypto jacking malware without compromising user experience.
INTC’s CCG business revenue increased 8% year-over-year to $10.6 billion in the first quarter, ended March 27, 2021. Its Mobileye segment’s revenue grew 48% from its year-ago value to $377 million, while its IOTG segment’s revenue rose 4% year-over-year to $914 million. The company reported $3.36 billion in net income for this period.
The company’s EPS is expected to grow at the rate of 5.4% over the next five years. Also, INTC beat the Street’s EPS estimates in each of the trailing four quarters. The stock has gained 17% year-to-date.
INTC’s POWR Ratings reflect this promising outlook. The company has an overall B rating, which translates to Buy in our proprietary ratings system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
INTC is rated an A in Value, and a B in Quality. Within the B-rated Semiconductor & Wireless Chip industry, it is ranked #12 of 97 stocks.
To see additional POWR Ratings for Growth, Momentum, Sentiment, and Stability for INTC, Click here.
HP Inc. (HPQ)
Formerly known as Hewlett-Packard Company, HPQ provides personal computing and other access devices, imaging and printing products, and related technologies, solutions, and services in the United States and internationally. The company operates through three segments: Personal Systems, Printing, and Corporate Investments.
This month, HPQ announced the expansion of HP+, which it claims is the smartest printing system designed for consumers and small businesses. With high demand for printing with millions of people working and learning from home, HP+ is modernizing today’s printing experience with unique solutions.
Also this month, HPQ was awarded seven Green Good Design Awards across its sustainable PC portfolio for responsible design and manufacturing. Its unique approach to design enables the use of more sustainable and recycled materials. This should help the company gain its customers’ trust that it is seeking to make a positive contribution to a sustainable world.
In the first quarter ended January 31, HPQ’s net revenue increased 7% year-over-year to $15.65 billion, while its non-GAAP net earnings increased 24% from its year-ago value to $1.19 billion. The company’s EPS increased 41.5% year-over-year to $0.92.
Analysts expect HPQ’ revenue for the quarter ending April 30, to be $14.94 billion, representing 15.6% year-over-year growth. The company’s EPS is likely to increase 72.5% year-over-year in the current quarter. HPQ’s stock has gained 113.1% over the past year.
It is no surprise that HPQ has an overall A rating, which translates to Strong Buy in our proprietary ratings system. It also has an A grade for Value, and a B grade for Momentum, and Quality. In the B-rated Technology – Hardware industry, it is ranked #4 of 49 stocks.
In total, we rate HPQ on eight different levels. Beyond what we’ve stated above, we have also given HPQ grades for Growth, Sentiment, and Stability. Get all the HPQ ratings here.
Fujitsu Limited (FJTSY)
Headquartered in Tokyo, Japan, FJTSY is an information and communication technology (ICT) company that operates internationally. The company operates through Technology Solutions, Ubiquitous Solutions, and Device Solutions segments. It also has a strategic partnership with NetApp to enhance data management infrastructure.
This month, FJTSY announced a strategic business alliance with NTT Corporation for the “Realization of a Sustainable Digital Society”. The companies will leverage their respective strengths to deliver innovation that contributes to meeting and resolving societal and environmental challenges. The partnership should help FJTSY deliver new value to its customers and shareholders.
During the full-year ended March 31, 2021, FJTSY’s operating profit increased 25.9% year-over-year to ¥266.3 billion. Its profit for the year rose 26.7% from its year-ago value to ¥202.7 billion, while its total comprehensive income increased 62.7% year-over-year to ¥277.09 billion.
FJTSY is expected to generate $34.44 billion in revenue for the fiscal period ending March 31, 2022, representing an 89.8% year-over-year growth. Over the past year, FJTSY’s stock has gained 50.3%.
FJTSY’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which equates to Buy in our POWR Ratings system. FJTSY has an A grade for Value, and a B grade for Momentum, Stability, and Quality. Among the 76 stocks in the Technology – Services industry, it is ranked #10.
Click here to see the additional POWR Ratings for FJTSY (Growth and Sentiment).
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INTC shares were trading at $57.95 per share on Friday morning, down $0.33 (-0.57%). Year-to-date, INTC has gained 17.72%, versus a 11.93% rise in the benchmark S&P 500 index during the same period.
About the Author: Samiksha Agarwal
Samiksha Agarwal has always had a keen interest in financial markets. This has led her to a career as a financial journalist. Through her extensive knowledge of fundamental analysis, her goal is to help investors identify untapped investment opportunities in the stock market. More...
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