3 Tech Stock Picks for Growth-Oriented Investors

GuruFocus.com
·4 min read

- By Alberto Abaterusso

The quarterly revenue and net income of the following technology companies have improved remarkably on a year-over-year basis, drawing the interest of growth-oriented investors.

Furthermore, sell-side analysts on Wall Street have issued positive recommendation ratings for their stocks.

Texas Instruments


The first stock that qualifies is Texas Instruments Inc (NASDAQ:TXN), a Dallas, Texas-based global semiconductors manufacturer.

Texas Instruments saw its quarterly revenue increase by 21.7% year over year to $4.076 billion as of the December 2020 quarter, up from $3.350 billion in the prior-year quarter.

Texas Instruments recorded net income of $1.688 billion for the quarter, which marked a robust advancement of 57.8% from $1.07 billion for the same quarter in 2019.

The stock price traded at 167.94 per share at close on March 5 following a nearly 60% increase over the past year, determining a market capitalization of $154.54 billion and a 52-week range of $93.09 to $181.80.

Texas Instruments Inc is currently paying a quarterly cash dividend of $1.02 per common share with the last payment made on Feb. 8, generating a trailing 12-month dividend yield of 2.29% as of March 5.

GuruFocus assigned a score of 7 out of 10 to the financial strength rating and of 9 out of 10 to the profitability rating of the company.

On Wall Street, the stock has a median recommendation rating of hold and an average target price of $184.80 per share.

Advanced Micro Devices Inc

The second stock that makes the cut is Advanced Micro Devices Inc (NASDAQ:AMD), a Santa Clara, California-based global semiconductors manufacturer.

Advanced Micro Devices saw its quarterly revenue rise by 52.5% year over year to approximately $3.244 billion as of the December 2020 quarter, up from $2.127 billion in the same quarter of 2019.

Advanced Micro Devices Inc has also reported a remarkable improvement in the net income, as it increased to $1.781 billion in the December 2020 quarter, up from $170 million for the same quarter of 2019.

The stock price closed at $78.52 per share on March 5 as a result of an 81.47% increase over the past year, which determined a market capitalization of $95.11 billion and a 52-week range of $36.75 to $99.23.

Advanced Micro Devices is currently not paying dividends.

GuruFocus assigned a score of 8 out of 10 to the company's financial strength rating and of 5 out of 10 to its profitability rating.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of about $102.03 per share.

Workday Inc

The third company that matches the criteria is Workday Inc (NASDAQ:WDAY), a Pleasanton, California-based provider of management software that helps its business clients to handle company activities and optimize their financial, human and capital resources.

The company saw quarterly revenues jump by nearly 16% year over year to about $1.132 billion as of the quarter ended on Jan. 31, up from $976.3 million for the same quarter of 2020.

The bottom line has also improved on a year over year basis, as the net loss of $71.7 million was lower for the recent quarter compared to the net loss of $128 million that was reported in the same quarter of 2020.

The stock price traded at around $237.02 per share at close on March 5 as a result of 65.78% growth that occurred over the past year for a market capitalization of $57.57 billion and a 52-week range of $107.75 to $282.77.

Workday Inc is currently not paying dividends to its shareholders.

GuruFocus assigned a score of 5 out of 10 for the company's financial strength rating and of 3 out of 10 for its profitability rating.

On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $275.27 per share.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.