The tech sector broke out over the past year, beating the S&P 500 index by returning 36.4% to its 23.2%. But the sector has some laggards.
The driving forces behind tech’s gains were Nvidia Corp. (up 118%), PayPal Holdings Inc. (up 100.6%) and Micron Technology Inc. (up 97.1%). Value investors may shy away from the stocks, however, given their exorbitant prices and high price-earnings (P/E) ratios. The price-earnings ratio is 57.2 for Nvidia and 64.8 for PayPal. Micron breaks the mold by qualifying as being both one of the highest performers and having one of the lowest price-earnings ratios at 6.7.
Within the tech space still lurk players with price tags that don’t shock. The ones with the lowest price-earnings ratios, and most gurus buying, are: Micron Technology Inc. (MU, Financial), Intel Corp. (INTC, Financial), HP Inc. (HPQ, Financial), IBM Corp. (IBM, Financial) and Xerox Corp. (XRX, Financial).
Micron Technology
In the past six months, nine investors tracked by GuruFocus have purchased Micron Technologies stock.
Micron Technology is a memory and storage technologies company. In the past five years, it achieved an average annual growth rate of 14.6% for revenue, 26.9% for EBITDA and 15.2% for book value.
Micron Technology Inc. has a market cap of $49.56 billion; its shares were traded around $42.86 Friday afternoon with a price-sales (P/S) ratio of 2.20. GuruFocus rated Micron Technology Inc. the business predictability rank of 2.5-star.
Intel Corp.
Six investors tracked by GuruFocus purchased Intel Corp. over the past six months. It has a price-earnings ratio of 15.6.
Intel Corp. is a maker of semiconductor chips used in computing and communications. In the past five years it had growth rates of 3.9% for revenue, 1.3% for EBITDA and 8.3% for book value.
Intel Corp. has a market cap of $209.06 billion; its shares were traded around $44.67 on Friday afternoon with a price-sales (P/S) ratio of 3.48. The trailing 12-month dividend yield of Intel Corp. is 2.41%. The forward dividend yield of Intel Corp. is 2.45%. Intel Corp. had an annual average earnings growth of 10.3% over the past 10 years. GuruFocus rated Intel Corp. the business predictability rank of 2-star.
HP Inc.
Six investors tracked by GuruFocus purchase HP Inc. over the past six months. It has a price-earnings ratio of 15.8.
HP Inc. focuses on selling desktop PCs and printing. In the past five years, it had a revenue decline rate of 15% and free cash flow decline rate of 17.6%.
HP Inc. has a market cap of $38.96 billion; its shares were traded around $23.68 Friday afternoon with price-sales (P/S) ratio of 0.77. The trailing 12-month dividend yield of HP Inc. stocks is 2.28%. The forward dividend yield of HP Inc. is 2.39%.
IBM Corp.
IBM Corp. has a price-earnings ratio of 13.5, and four investors purchased it over the past six months.
IBM is an information technology company that offers services, software and hardware. It has five-year revenue rates of decline of 1.3% for revenue, 3.6% for EBITDA and 0.3% for book value.
IBM Corp. has a market cap of $150.32 billion; its shares were traded around $162.37 with a P/E ratio of 13.58 and P/S ratio of 1.96. The trailing 12-month dividend yield of IBM Corp. is 3.63%. The forward dividend yield of IBM Corp. is 3.55%. IBM Corp. had an annual average earnings growth of 5.2% over the past 10 years.
Xerox Corp.
Xerox Corp. has a price-earnings ratio of 15.5, and two investors purchased it over the past six months.
Xerox is a printing equipment company. Over the past five years, it had rates of decline of 9% for revenue, 9.7% for EBITDA and 1.1% for book value.
Xerox Corp. has a market cap of $8.1 billion; its shares were traded around $31.80 Friday afternoon with and price-sales ratio of 0.81. The trailing 12-month dividend yield of Xerox Corp. is 2.55%. The forward dividend yield of Xerox Corp. is 3.19%.
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