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Alberto Abaterusso
Alberto Abaterusso
Articles (2474) 

A Trio of Tech Stocks for Growth-Oriented Investors

These companies have improved quarterly sales and profits recently

November 20, 2020 | About:

Growth-oriented investors may want to consider the following tech stocks, as they have reported a strong improvement in their quarterly revenue and net income on a year over year basis.

Qualcomm Inc

The first stock to consider is Qualcomm Inc (NASDAQ:QCOM), a San Diego, California-based manufacturer of semiconductors for mobile devices and other wireless products.

Qualcomm saw its quarterly revenue grow by 73.4% year over year to $8.35 billion as of the most recent quarter that ended September, up from $4.81 billion in the prior-year quarter.

Qualcomm recorded net income of $2.96 billion for the quarter that ended in September, marking an impressive advancement from $506 million for the same quarter in 2019.

The stock price traded at $147.53 per share at close on Nov. 19 after a 73.34% increase over the past year, determining a market capitalization of $166.86 billion and a 52-week range of $58 to $153.33.

Qualcomm is currently paying quarterly dividends of 65 cents per common share with the next one scheduled for release on Dec. 17. It generates a trailing 12-month dividend yield of 1.73% and a forward dividend yield of 1.77% as of Nov. 19.

GuruFocus assigned a score of 6 out of 10 to the financial strength rating and of 8 out of 10 to the profitability rating of the company.

On Wall Street, the stock has an overweight recommendation rating with an average target price of $155.69 per share.

VANGUARD GROUP INC leads the group of top fund holders of the company, owning 9.23% of shares outstanding. It is followed by BlackRock Inc., owning 6.85% of shares outstanding, and STATE STREET CORP with 4.20% of shares outstanding.

Cloudflare Inc

The second stock to consider is Cloudflare Inc (NYSE:NET), a San Francisco, California-based provider of integrated cloud-based security solutions to secure network services of businesses worldwide.

Cloudflare Inc saw its quarterly revenue grow by 54.4% year over year to about $114.2 million as of the most recent quarter which ended in September, up from nearly $73.94 million in the same quarter in 2019.

Cloudflare also considerably improved the bottom line of its income statement, as it recorded a net loss of $26.5 million in the quarter ended in September, which is better than the net loss of $41 million recorded in the same quarter of 2019.

The stock price closed at $65.89 per share on Nov. 19 after it soared 279.6% over the past year, for a market capitalization of $20.25 billion and a 52-week range of $15.05 to $71.77.

Cloudflare Inc is currently not paying dividends.

GuruFocus assigned a score of 5 out of 10 to the company's financial strength rating. The three-year revenue growth rate of 76.5% (versus the industry median of 7.6%) stands out of the crowd as a profitability indicator.

On Wall Street, the stock has a buy recommendation rating with an average target price of $67.87 per share.

Venrock Management V, LLC leads the group of top fund holders of the company, owning 10.27% of shares outstanding. It is followed by BAILLIE GIFFORD & CO with 9% of shares outstanding and VANGUARD GROUP INC with 3.01% of shares outstanding.

Qorvo Inc

The third company to consider is Qorvo Inc (NASDAQ:QRVO), a Greensboro, North Carolina-based developer of wireless and wired connectivity solutions for mobile manufacturers as well as infrastructure companies and other operators in the defense industry.

The company saw quarterly revenues increased by 31.4% year over year to about $1.06 billion as of the most recent quarter ended in October, up from $806.7 million for the same quarter of 2020.

The quarterly net income for the period in question advanced 65% year over year, hitting $137 million this year compared to $83.04 million in 2019.

The stock price traded at around $146.86 per share at close on Nov. 19 as a result of a 45.55% increase over the past year, determining a market capitalization of $16.75 billion and a 52-week range of $67.54 to $154.43.

Qorvo Inc does not pay dividends.

GuruFocus assigned a score of 6 out of 10 for the company's financial strength rating and of 5 out of 10 for its profitability rating.

On Wall Street, the stock has an overweight recommendation rating with an average target price of $159.24 per share.

Among the top fund holders of the company, VANGUARD GROUP INC dominates with 11.48% of shares outstanding. It is followed by BlackRock Inc. with 7.9% of shares outstanding and Vulcan Value Partners, LLC with 6.86% of shares outstanding.

Disclosure: I have no positions in any securities mentioned.

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About the author:

Alberto Abaterusso
I am a contributor at GuruFocus. I primarily write about how to pick potential value stocks. Gold, silver and precious metals mining industries is also my cup of tea. 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

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