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5 Hot Tech Stocks to Consider for 2012

March 29, 2012 | About:
The technology sector is extremely dynamic and fast paced. It offers a lot of opportunities to investors looking for profits and returns. In this article I will be evaluating five technology stocks which are worth considering while building a diversified portfolio of investments.

Marvell Technology Group (MRVL): This stock is trading in the market at a price just above $16 per share. Some experts believe that the price will remain unchanged but others predict that it will fall. The 52-week trading range is between $11 and $19 per share approximately. Market capitalization at the current price is more than $9 billion and the average trading volume is above 11 million. Earnings per share (EPS) are more than $1 while the price-to-earnings (P/E) ratio is nearly 13. Beta for this stock is calculated to be 1.17 which indicates that there is low risk involved with this investment. Positive growth trends are being seen in terms of sales and income and the net profit margin is close to 21%. Based on its financial highlights in the 3rd and 4th quarter, MRVL seems to be an attractive investment. Market analysis suggests that the experts in the industry consider this stock to be a viable option to invest in. In my opinion, this stock would be a good option to invest in for lower risk and diversified portfolios.

Advanced Micro Devices (AMD): The trading price for this stock is currently above $7 per share. Some experts and analysts believe that the price will not change for a while. Others feel that there is a high chance that it might increase. The 52-week trading range for the stock is between $4 and $10 per share approximately. Market capitalization at current price is more than $5 billion and the average trading volume is close to 15 million. Earnings per share (EPS) are almost $1 and the price-to-earnings (P/E) ratio is nearly 11. Beta for this stock is calculated to be 2.22 which means that it could be risky to invest in this stock in case the market falls. But it does offer higher returns if the market rises further. The debt-to-equity ratio is 1.27 and there is a positive trend in terms of sales and income growth. It has been reported that AMD has already increased by approximately 37% this year. It is relatively stable as compared to its competitors and has offered attractive returns to its investors in the previous quarter. I believe that AMD would be a good investment option because there are chances of high returns.

Qualcomm (QCOM): The current trading price for this stock is approximately $63 per share. There are some experts and analysts who predict that the price will remain constant while some believe that it will increase. The 52-week trading range for this stock is between $45 and $63 per share approximately. Market capitalization at current price is more than $104 billion and the average trading volume is close to 13 million. Earnings per share (EPS) are nearly $3 and the price-to-earnings (P/E0 ratio is 24. Dividend yield is nearly 1.4% and the dividend rate is 0.86. Debt-to-equity ratio is 0.03 and the beta is calculated to be 0.96. This indicates that the stock is safer and more stable than other options. QCOM has a 29% profit margin with positive trends in sales and income growth. This is reported to be one of the three stocks which are offering dividend growth but are currently selling at a 20% discount. In my opinion, QCOM would be a good investment option because it is safer than most of the other stock options and at the same time offers better returns as well.

SanDisk (SNDK): This stock is currently trading in the market at approximately $50 per share. According to some experts in the market, the price will remain stable but others suggest that it might increase. The 52-week trading range is between $32 and $54 per share. Market capitalization at the current price is close to $11 billion and the average trading volume is nearly 6 million. Earnings per share (EPS) are 4 and the price-to-earnings (P/E) ratio is nearly 12. Debt-to-equity ratio is 0.23 while the beta for this stock is calculated to be 1.70. This indicates that there might be a bit of risk associated with investing in this stock but at the same time it has the potential to offer higher returns than the market average. There are more than 240 million outstanding shares for this company. It is being said that SanDisk will have some good news for its investors in this quarter. The company is trying to stabilize itself and widen its competitive moat. Some experts have even categorized it among the 12 undervalued technology stocks which offer high profitability. I believe that it would be a viable option to buy this stock because it has the potential to offer higher returns and will help in creating a diversified portfolio of investments.

Rambus (RMBS): The current trading price for this stock is close to $8 per share. A majority of the experts and analysts in the industry believe that the price will remain unchanged for a while. The 52-weeek trading range for this stock is between $4 and $22 per share approximately. Market capitalization at current trading price is close to $852 million and the average trading volume is nearly 2 million. Earnings per share (EPS) may not be very impressive but the price-to-earnings (P/E) ratio is 19 and the debt-to-equity ratio is 0.41. This indicates that the company is still stable. There are almost 110 million outstanding shares in the market. Although the company did recently suffer a loss which led to a fall in share prices, there are reports coming in that the issue has been resolved. A deal has been made between Rambus Inc. and NVIDIA which has brought some stability to the company’s share prices. It is also being said that the company will soon be able to recover from the loss and stabilize itself once again. I believe that this stock is worth considering investing into once the situation has improved.

About the author:

StockCroc
I'm mostly interested in income investing using dividends, preferred stocks and other debt instruments, and pair trading.

I fundamentally analyze every business from the top down.

In my personal life, I have a strong Jewish faith and enjoy playing Scrabble and entrepreneurship.

Visit StockCroc's Website


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