The technology market is growing rapidly due to the proliferation of cloud computing, cybersecurity solutions, and digital technologies. The pandemic has further increased the demand for solutions that support remote work and cybersecurity measures, among other things.
Therefore, investors can consider investing in high-quality tech stocks.HPQ), Teledyne Technologies Incorporated (TDY), Bell Fuse Co., Ltd. (bellhub) Take advantage of industry tailwinds at the end of this year.
The technology hardware industry is growing due to continuous innovation with advances in AI, IoT, and 5G implementation. A surge in remote work, e-commerce, automotive innovation, and sustainability efforts will further drive growth.
Additionally, the global Device as a Service (DaaS) market is growing due to the increasing demand for subscription models and adoption of cloud services, especially in developing countries.The global Device-as-a-Service market is expected to expand rapidly CAGR 29.1% From 2023 to 2030.
Furthermore, the expected expansion of the global consumer electronics market is supported by smartphone penetration and technological advancements.The global home appliance market is expected to grow rapidly CAGR 6.6% From 2023 to 2030.
Additionally, the ongoing digital transformation across industries is driving demand for IT services to implement and optimize digital technologies, cloud computing, and data analytics. Additionally, the dynamic evolution of the technology industry requires an increased emphasis on user experience optimization with a focus on mobile-first design.
This year, the global IT services market is expected to reach $1.24 trillion in revenue. It is expected to expand at a CAGR of 7.4% in the coming years. reaching $1.77 trillion By 2028.
With these favorable trends in mind, let’s take a look at the fundamentals of some of the hottest tech stocks.
HP Co., Ltd. (HPQ)
HPQ is a global technology company that provides personal computing devices, printers, and related services. The company operates through three segments: Personal Systems; Personal Systems; printing; and business investment. The company serves consumers, businesses and various sectors around the world.
On November 7, HPQ partnered with Indo-MIM Private Limited to advance metal additive manufacturing, with INDO-MIM investing in three HP Metal Jet S100 printers. The partnership will focus on materials and application development in Bangalore, India, and support North American customers in Texas.
The partnership aims to qualify new HP Metal Jet materials and increase speed using HPQ’s process development software to drive innovation in aerospace, automotive, consumer electronics, healthcare and other industries. I am.
For the fourth quarter ended October 31, 2023, HPQ reported net revenue of $13.82 billion. The company’s non-GAAP net income and operating income increased 8.4% and 11.3% year over year to $902 million and $1.25 million, respectively. Net income per share was $0.97, compared to his net loss per share of $0.02 in the year-ago period.
The company expects non-GAAP EPS for fiscal 2024 to be in the range of $3.25 to $3.65. Furthermore, HPQ free cash flow For the same year, it would range from $3.1 billion to $3.6 billion.
HPQ’s revenue and EPS for the second quarter ending April 2024 are expected to be $13.17 billion, up 2% year over year, and $0.81, up 1.8% year over year, respectively. The company has exceeded his EPS estimates in three of his four subsequent quarters, which is great.
HPQ stock is up 9.8% over the past nine months and 12.2% year-to-date, closing at $30.15.
HPQ power rating It reflects that healthy outlook. The stock has an overall rating of B, which equates to a Buy according to our proprietary rating system. POWR ratings are calculated by considering 118 different factors, with each factor weighted to the best degree.
HPQ has an A grade for Value and a B grade for Growth, Momentum, and Quality.within A rating Technology – Hardware It ranks #4 out of 37 stocks in its industry.
In addition to the POWR Rating above, you can access additional Stability and Sentiment Ratings for HPQ. here.
Teledyne Technologies Incorporated (TDY)
TDY operates globally, specializing in instrumentation, digital imaging, aerospace and defense electronics, and engineered systems. The company’s diverse portfolio includes cutting-edge solutions for surveillance equipment, digital cameras, electronic components, and defense, space, and environmental applications.
On October 3, TDY acquired Xena Networks, strengthening its presence in the protocol testing market. This move strengthens TDY’s Ethernet system verification capabilities as demand for high-speed data transmission in AI, machine learning, and 5G increases.
This strategic acquisition is in line with TDY’s goal to provide comprehensive solutions to network equipment manufacturers and cloud computing providers.
TDY’s net sales for the third quarter ended October 1, 2023 were $1.4 billion, an increase of 2.9% from the same period last year. The company reported non-GAAP net income and EPS of $241.9 million and $5.05, respectively, up 11.7% and 11.2% from the prior year. Additionally, non-GAAP operating income increased 8.5% year over year to $319.2 million.
Analysts expect TDY’s revenue and EPS to increase 3.8% year-over-year to $1.48 billion and 10.8% year-over-year to $4.29, respectively, for the second quarter ending June 2024. The company beat his EPS estimates in each of his subsequent four quarters.
The stock price has risen slightly over the past year, rising 9.8% in the past month to close at $421.90.
TDY’s strong fundamentals are reflected in its POWR rating. The stock has an overall rating of B, which equates to a Buy according to our proprietary rating system.
The sentiment rating is B. Within B rating Technology – Electronics It ranks #11 out of 39 stocks in its industry.
Click to see additional POWR ratings for TDY on Growth, Value, Momentum, Stability, and Quality here.
Bell Fuse Co., Ltd. (bellhub)
BELFB designs, manufactures and markets products for industries such as networking and aerospace, offering magnetic solutions, power products, protection solutions and connectivity products under a variety of brands. We sell through direct account managers and authorized distributors.
On November 8, BELFB expanded its portfolio with the introduction of the advanced single-port, 10G, NBase-T, 60W, and 100W Power over Ethernet (PoE) MagJack® integrated connector module (ICM).
These modules are designed for applications such as industrial controllers, video cameras, and Wi-Fi access points to meet customers’ increasing demands for higher speeds and increased power capacity.
BELFB’s strategic expansion will allow the company to capture greater market share, increase revenue, foster customer loyalty, and play a key role in the company’s overall growth.
For the nine months ended September 30, 2023, BELFB’s non-GAAP adjusted net sales were $485.38 million, an increase of 4.2% from the prior year period. The company’s adjusted EBITDA and non-GAAP net income were $86.58 million and $65.34 million, respectively, representing increases of 49.2% and 61.6%, respectively, from the prior year period.
Cash and cash equivalents at the end of the period were $100.23 million, an increase of 41.4% from the same period last year.
Street expects BELFB’s sales to be $150.5 million in the fourth quarter ending December 2023. The company’s EPS is expected to be $1.41, up 4.4% year-over-year. The company beat his revenue and EPS estimates in each of his four subsequent quarters.
BELFB stock has increased 92.2% over the past nine months and 89.3% since the beginning of the year, closing at $62.30.
BELFB’s POWR Rating reflects a positive outlook. The stock has an overall rating of B, which equates to a Buy according to our proprietary rating system.
The stock has a Value and Sentiment grade of A and a Quality grade of B. Technology – Ranked 3rd within the electronics industry.
click here See additional Growth, Momentum, and Stability ratings for BELFB here.
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HPQ stock was trading at $31.06 per share Thursday morning, up $0.91 (+3.02%). Year-to-date, HPQ has risen 19.82%. In comparison, the benchmark S&P 500 index rose 24.92% in the same period.
About the author: Kritika Sarma
An interest in risky financial products and a passion for writing led Kritika to become an analyst and financial journalist. She earned a Bachelor’s degree in Commerce and is currently enrolled in the CFA program. She aims to help investors identify untapped investment opportunities with her fundamental approach. more…
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