1. How to use GuruFocus - Tutorials
  2. What Is in the GuruFocus Premium Membership?
  3. A DIY Guide on How to Invest Using Guru Strategies
Alberto Abaterusso
Alberto Abaterusso
Articles (2203) 

A Trio of Growth Technology Stocks

Taiwan Semiconductor Manufacturing Co Ltd tops the list

May 14, 2020 | About:

The following three growing technology companies have posted significant year-over-year increases in their quarterly revenues and net income.

Taiwan Semiconductor Manufacturing Co Ltd

The first company to consider is Taiwan Semiconductor Manufacturing Co Ltd (NYSE:TSM), a Taiwanese global distributor of integrated circuits.

The company grew its quarterly revenue by 45.4% to $10.31 billion in first-quarter 2020, up from $7.09 billion in the prior-year quarter. The net income was $3.9 billion for the first quarter of 2020 compared to net income of $1.9 billion for the same quarter of 2019.

After a 21% increase over the past year, the stock price traded at $50.92 per American Depositary Receipt at close on May 13 for a market cap of $264.08 billion and a 52-week range of $37.18 to $60.64.

Currently, Taiwan Semiconductor pays a quarterly cash dividend of 41.7 cents per common share.

Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $52.55 per ADR.

GuruFocus assigned a high rating of 8 out of 10 for the company’s financial strength and a high rating of 9 out of 10 for its profitability.

Wall Street sell-side analysts predict that Taiwan Semiconductor will grow its revenues by 20.6% in 2020 and 11.7% in 2021, while its net earnings are expected to increase by 25.6% in 2020 and 15.2% in 2021.

ServiceNow Inc

The second company to consider is ServiceNow Inc (NYSE:NOW), a Santa Clara, California-based provider of cloud computing solutions to enterprises worldwide.

The company has grown its quarterly revenue by 33% to $1.05 billion in the first quarter of 2020, up from $0.79 billion in the prior-year quarter. The net income of $48.2 million in the first quarter of 2020 marked an increse from a net loss of $1.5 million in the comparable quarter of 2019.

As a result of a 32% increase over the past year, the stock price traded at around $361.29 per share at close on May 13 for a market cap of $68.9 billion and a 52-week range of $213.99 to $388.50.

Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $368 per share.

GuruFocus assigned a positive score of 6 out of 10 to the company’s financial strength and a moderate score of 4 out of 10 to its profitability.

Xperi Corp

The third company to consider is Xperi Corp (NASDAQ:XPER), a San Jose, California-based developer of various digital and interconnect technologies.

The company grew its quarterly revenue by nearly 108% to $117.7 million in the first quarter of 2020, up from $56.6 million in the prior-year quarter. The bottom line reported a positive increase to net income of $19.3 million in the first quarter of 2020 compared to a loss of $25.08 million in the comparable period of 2019.

As a result of a 40% decline over the past year, the stock price traded at $14.25 per share at close on May 13 for a market capitalization of $720.12 million and a 52-week range of $9.01 to $25.84.

The company is currently paying a quarterly cash dividend of 20 cents per common share.

Wall Street sell-side analysts recommend a buy rating for this stock and have set an average target price of $24 per share.

GuruFocus assigned a low score of 3 out of 10 to the company’s financial strength and a good score of 7 out of 10 for the profitability.

Disclosure: I have no positions in any securities mentioned in this article.

Read more here:

Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.

About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about gold, silver and precious metals mining industries. My articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. I hold a Master's Degree in Business Administration from Università degli Studi di Bari (Italy), Aldo Moro. I am based in The Netherlands.

You can follow me on Twitter at https://twitter.com/AAbaterusso

Rating: 5.0/5 (1 vote)

Voters:

Comments

Please leave your comment:



Performances of the stocks mentioned by Alberto Abaterusso


User Generated Screeners


pjmason14Momentum
pascal.van.garsseHigh FCF-M2
kosalmmuse6
kosalmmuseBest one1
DBrizanall 2019Feb26
kosalmmuseBest one
DBrizanall 2019Feb25
kosalmmuseNice
kosalmmusehan
MsDale*52-Week Low
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)