Tag Archives: tech leaders

Don’t Overlook 4 Top Tech Stocks Near Buy Point

Sifting through stock lists for a trend is always a sound strategy. Otherwise, you could miss a stock or group of stocks that are making a move. If you look at the industry group rankings for some of the software makers, for instance, you might be quick to dismiss them. The financial software group ranked No. 108 in Thursday’s list, down from No. 45 six weeks ago. Design software came in at No. 133 vs. No. 111 six weeks back, with enterprise software just behind at No. 134 vs. No. 112. One group improved: specialty enterprise software, at No. 120, up from No. 143. But drilling down to look deeper at which stocks make this week’s Tech Leaders, you might uncover a few gems that are near buy points. Citrix Systems ( CTXS ) is back in buy range from an 80 handle buy point initially cleared in April. More importantly, shares are finding support at the 10-week moving average, providing a secondary buy area. The stock spiked as much as 12% on April 22 before settling for a 4% gain, after the business software maker reported Q1 earnings that beat views and raised its full-year outlook. Florida-based Citrix belongs to the specialty enterprise software group. Paycom Software ( PAYC ) provides a cloud-based employment management platform with a software-as-a-service business model. Shares, near the top of a buy zone from a 38.28 cup-with-handle entry, have been rising past resistance around the 40 level, a positive sign. The base was a much steeper than normal 51%, which increases risk. But the stock’s relative strength line is near highs. Paycom hails from the enterprise software group, as does Ultimate Software ( ULTI ). Ultimate, which designs payroll and workforce management software, has posted quarterly double-digit profit and sales gains for at least the past four years. Analysts expect that streak to continue the next two quarters. The stock is shaping a handle with a 209.81 entry. Cadence Design Software ( CDNS ) is holding just above a 23.40 buy point first cleared in late March. It’s finding support at its 50-day line. The stock has the top Composite Rating, 95, in the design software group.

Big Profit Gains Ahead For 3 Top Tech Stocks?

Internet stocks aren’t dominating the Tech Leaders list as they might have in years past. But three online content plays have strong earnings growth, behind them and up ahead. Facebook ( FB ) profit soared 83% to 77 cents a share in Q1, topping views by 15 cents, for its best gain in seven quarters. Revenue grew 52% to $5.26 billion, also well ahead of forecasts. The social network fired on all cylinders, with a 16% increase in daily active users, 15% higher monthly active users, and a 21% jump in mobile monthly active users. Mobile advertising revenue made up 82% of total ad sales, up from 73% in the year-earlier quarter. Analysts expect solid EPS gains to continue in Q2 and Q3 at 62% and 53%, respectively. The stock is still in buy range from a 117.09 cup-with-handle buy point it gapped past April 28 on its earnings report. With the market uptrend still under pressure, Facebook hasn’t been able to gain much upside traction but has held nearly all its gains. WebMD Health ( WBMD ) has posted 33% or higher quarterly earnings growth for the past three years. Analysts expect the pace to slow to a perfectly respectable 25% in Q2 and to 38% in Q3. WebMD’s 96 Composite Rating is second-best in the Internet content group, behind Facebook’s 98. The stock is extended from a 58.35 buy point cleared in March, but it is in buy range from a pullback to the 10-week moving average. Shares have rallied more than 30% so far this year, far outperforming the Nasdaq composite. Weibo ( WB ) (87 Composite) reported its first full-year profit, covering 2015, with consensus estimates targeting a 59% jump this year and 67% the next. The Chinese microblogging service’s Q1 EPS surged by triple digits, although it was just 7 cents from a year-earlier profit of a penny a share. Analysts expect an 80% increase in Q2 and a 60% gain in Q3. Shares are extended from a 19.20 cup-with-handle buy point which they blew past on April 6. Those who haven’t yet locked in gains could consider doing so, given the market uncertainty.

Tech Leaders List Debuts In Tough Market Environment

The new IBD Tech Leaders Index looks at companies in the technology field that are highly rated using IBD’s proprietary ratings. With the current market condition being Uptrend Under Pressure, these names should be approached with higher caution, especially since they will be tied more to the performance of the Nasdaq composite. As of the April 29 list, the electronics sector stands out with a dominant representation by two industry groups making up more than 25% of the list: the scientific measurement electronics group, at No. 10 of IBD’s 197 industry groups, and the electronics parts manufacturers, at No. 23. Many of the stocks in the sector serve in support roles, so part of your analysis should include the areas of exposure for the companies. Are they focused on life sciences with exposure to the biotech industry? Biotechs had a great run in 2014, but the group has fallen considerably, with big winners like Celgene ( CELG ) and Gilead ( GILD ) topping in the summer of 2015. A company like Danaher ( DHR ) has exposure to multiple industries, with segments that serve life sciences and diagnostics vs. its segments focused on industrial technologies and petroleum businesses. Danaher will make the analysis a little easier when they complete a tax-free spinoff in the third quarter of 2016. The company retaining the Danaher name will keep the life science exposure and the new spinoff, named Fortive, will take the industrial side. What about the exposure to foreign markets? Bruker ( BRKR ) not only has strong links to the life sciences and pharmaceutical research but also, according to the company website, 80% of its revenue comes from outside the U.S. As the first-quarter earnings season has unfolded, companies have often pointed to currency headwinds created by a strong dollar as being the culprit behind soft earnings.