Which technology should businesses invest in?

business
December 24, 2022
60 / 100

Introduction

The top three IT firms this month are Fair Issac Corp., Enphase Energy Inc., and Arrow Electronics Inc.

With outstanding third-quarter sales records in a struggling electronics industry, semiconductor distributor Arrow Electronics has become a top bargain as a result of its stock’s recent decline. Enphase, a manufacturer of solar equipment, is reporting surging earnings and sales as the market for alternative energy products continues to grow. Additionally, FIC0, a firm that provides credit scores, is growing after posting quarterly results that are above forecasts.

As technology equities, represented by the Technology Select Sector SPDR Fund (XLK), have lost more than a fifth of their value in the past year compared to the 15% decline of the Russell 1000, these businesses are dominating their category.

Here are the top five tech stocks with the best value and the quickest growth out of 15 different categories. The information in the tables below and the market performance figures above are current as of November 22, 2022.

Best Tech Stocks for Value

Value investing is a factor-based investment technique that entails selecting stocks that you think are undervalued compared to their inherent value, often by evaluating the stock’s price in relation to one or more key company measures. Price-to-earnings (P/E) ratio is a recognized measure of value. Worth investors think that a company is undervalued in relation to its inherent value (in this example, as determined by its P/E ratio). 

However, when the price reverts to reflecting the value of the firm, its stock price may increase more quickly than those of competitors. The tech equities with the lowest 12-month trailing P/E ratio are those listed below.

Electronics firm Arrow Inc. Arrow offers clients enterprise computing goods and services, including electronic components, distribution, and solutions. Over 220,000 consumers globally are served by Arrow, which has roughly 21,000 employees worldwide. Early in November, the business announced a third-quarter record third-quarter net income up 18% year-over-year and revenue up 9% to $9.3 billion. A carrier board system called JetCarrier96, which has uses in autonomous machines, intelligent vision, and diagnostic medical imaging, was recently introduced by the business.

HP Inc.: HP provides workstations, retail point-of-sale systems, displays, printers, hardware, and support in addition to desktop and notebook computers, printers, and hardware. Individual consumers, companies, and governments are among HP’s clients. The business has 27,000 patents and works in 170 nations worldwide. On November 22, HP declared a dividend of $0.2625 per common share, which was due on January 4.

Hewlett Packard Enterprise Co.: This company provides a wide variety of goods and services in the cloud, high-performance computing, artificial intelligence (AI), software, and storage sectors. Globally, the business serves 55,000 clients, and its edge networking links 10 million devices.

Avnet Inc.: Avnet offers distribution, design assistance, and supply chain and logistics services for electronic components. It employs 15,300 people and ships 283 billion items yearly.

Inc. Dell Technologies: Hardware, software, peripherals, data center infrastructure, and cloud technologies are all sold by Dell to both individuals and companies. About 32,000 salespeople and 35,000 services and support personnel worked at Dell as of January 2022. According to a recent report from Dell, the third quarter’s declining revenue caused a 93% decline in net income from continuing operations. A $1 billion court settlement expenditure affected the results.

Highest-Rising Technology Stocks

These are the top tech stocks according to a growth model that weighs a company’s most recent quarterly year-over-year (YOY) earnings-per-share (EPS) growth and year-over-year (YOY) percentage sales growth equally. Sales and profits are equally important for a company’s success.

Due to this, evaluating businesses that are based on just one growth indicator leaves a ranking open to accounting irregularities of the quarter (such as changes in the tax legislation or restructuring charges), which might render one or both figures unrepresentative of the whole firm. Companies were removed as outliers if their quarterly EPS or sales growth exceeded 2,50%.

Energy Enphase Inc. Enphase creates, manufactures, and distributes solar energy technology, including microinverters, tools and software for tracking energy production, and items for battery storage. On more than 2.7 million houses in more than 145 countries, Enphase has installed more than 52 million microinverters. Customers in the U.S. and Europe increased their migration away from fossil fuels, resulting in a seven-fold increase in the company’s third-quarter net profits on record quarterly sales.

NCR Corp.: NCR is a point-of-sale transactions firm that offers services to restaurants, retail outlets, and self-directed banking customers. The firm has 38,000 employees. In the third quarter, NCR reported increased revenue and a five-fold rise in net income attributable to the company from ongoing operations, driven by expansion in its payments and network businesses. PC systems, consumer electronics, storage, networking, and servers are just a few of the IT goods and services that are distributed by TD Synnex Corp. The firm has 22,000 employees. On September 27, the business said that thanks to its merger with Tech Data a year earlier, third-quarter net income rose by 57% while revenue nearly quadrupled.

Monolithic Power Systems Inc.: Monolithic offers services for process and system integration as well as semiconductor-based electronics solutions. More than 2,700 people work at the firm. In a report published in late October, the business said that growth in all of its end markets helped the third quarter’s sales surge 81% while also increasing net income.

Inc. Arista Networks: Customers in data centers, campuses, and routes may use cloud network services from Arista. Over 50 million cloud networking ports have been distributed worldwide.

Categories

More Posts:

Nyago Michael Emmanuel

We invite many people who can invest in our Akiba Ya umoja community benefit savings and investment group of Uganda to enable us expand our operations in Uganda

How Startups Can Ensure Health and Safety at the Workplace

Everyone, including the owners, management, and staff, is responsible for ensuring workplace safety. All parties must take the proper steps so that no one is harmed while working. If you are looking for ways to keep your workplace safe, here are ten tips to help you out.

How to Put Safety First at Your Business

As a business owner, it is your responsibility to provide a safe environment for both your employees and your customers. When you take the proper steps, you can prevent accidents, injuries, and even lawsuits. You need to make safety a top priority at your business. ...

Supplies Your Business Should Donate to Schools

Back-to-school season is upon us, and that means it's time for businesses to start thinking about donating supplies to schools. Donating supplies is a great way to give back to the community, and it can also be a great marketing tool for your business.  Here are a few...

How to Decide Which Business Data to Archive

When it comes to business data, it's not a question of if you should archive it, but rather how you should archive it. With so many factors to consider — from the costs of storage to the ease of retrieval — it can be tough to know where to start. In this blog post,...

A Five-Step Guide to Starting a Logistics Company

If you've been considering launching a transportation and logistics company, now is the moment. The transportation and storage sector is very important and profitable. Statistics show that by 2027, the global logistics market would have grown from its 2017 valuation...

The top five cybersecurity blunders to avoid

Due to the widespread use of smartphones and data consumption during the past ten years, there has been a significant increase in opportunities for hackers to access your devices. Overall, consumption has grown, but there is a gross ignorance about digital security...

13 Best tech business ideas to start this year

Technology companies are concerned with the research and development of technology-based goods as well as their distribution. The products and services that technology companies provide are applicable in a variety of different markets. The following is a list of the...

How to Avoid Regrets When Selling Your Business

For years, you have spent countless hours and allocated immeasurable effort into growing your business, and now the time has come to sell. Even with an offer that exceeds your expectations, you may have trouble letting go. When selling your business, to avoid regrets...

How to Reduce Wasted Time in Your Business

In any business, time is precious. It's something that you can't get back, and it's always in short supply. That's why it's important to use your time wisely in your business.  Here are some strategies that you can use to reduce wasted time and make the most of the...
Nyago Michael Emmanuel

Nyago Michael Emmanuel

We invite many people who can invest in our Akiba Ya umoja community benefit savings and investment group of Uganda to enable us expand our operations in Uganda

How to Put Safety First at Your Business

How to Put Safety First at Your Business

As a business owner, it is your responsibility to provide a safe environment for both your employees and your customers. When you take the proper steps, you can prevent accidents, injuries, and even lawsuits. You need to make safety a top priority at your business. ...

How to Avoid Regrets When Selling Your Business

How to Avoid Regrets When Selling Your Business

For years, you have spent countless hours and allocated immeasurable effort into growing your business, and now the time has come to sell. Even with an offer that exceeds your expectations, you may have trouble letting go. When selling your business, to avoid regrets...

All Categories

Business Operations

Entrepreneur Interviews

Marketing, Networking, & Social Media

Self Care & Personal Development

Working Moms

Business Software and Technology

Entrepreneurship & Small Business

Organizing Tips

Sales

Career Building

Family Businesses

Inspiration

Starting Your Own Business

Work-Life Balance

Communication

Hiring Help

Management & Leadership

Time Management & Priorities

Women in Leadership

Recent Posts

Soe Tun: The Copy Doctor

Soe Tun: The Copy Doctor

Autistic kid finds out that he’s unemployable and doesn’t enjoy most social settings. Decides to be a pro copywriter as a result.

Annie Anderson – Business Strategist & WordPress Creator

Annie Anderson – Business Strategist & WordPress Creator

Annie Anderson is the owner and digital creator at Midnight Rebel Digital Co. With over 25 years experience in design and development and more than 15 years experience with WordPress, Annie is a great person to have in your corner when it comes to websites, tech, and systems.

How Startups Can Ensure Health and Safety at the Workplace

How Startups Can Ensure Health and Safety at the Workplace

Everyone, including the owners, management, and staff, is responsible for ensuring workplace safety. All parties must take the proper steps so that no one is harmed while working. If you are looking for ways to keep your workplace safe, here are ten tips to help you out.

Product Mistakes You Might Be Making at Your Business

Product Mistakes You Might Be Making at Your Business

Running a business isn’t easy, and making product-related mistakes can cost your company time and money. From creating products without doing market research to holding excess inventory or failing to file patents, there are numerous pitfalls that you need to be aware...

Occupational Hazards That Come With an Office Job

Occupational Hazards That Come With an Office Job

Working in an office can be a great way to make a living, but it also comes with certain risks. Sitting at a desk for long hours and staring at screens can lead to physical ailments that not only cause discomfort but could eventually lead to more serious health...

How to Make Your Social Media Campaigns More Relevant

How to Make Your Social Media Campaigns More Relevant

Social media is a powerful tool for businesses of all sizes. It allows you to connect with customers and followers in a way that was never possible before. However, it's important to make sure your social media campaigns are relevant to your target audience. Here are...