The following tech companies saw their quarterly revenue and net income improve significantly on a year-over-year basis, attracting the interest of growth-focused investors. Furthermore, sell-side analysts on Wall Street have issued positive recommendation ratings for these stocks, suggesting they expect better market valuations in the future.
ASML Holding
The first stock that meets the criteria is ASML Holding NV (ASML, Financial), a Dutch developer and marketer of advanced semiconductor equipment systems for memory and logic chip manufacturers.
ASML Holding's quarterly revenue increased by 8.69% year over year to $5.63 billion as of the December 2021 quarter. Revenue was $5.18 billion in the prior-year quarter.
The company recorded a net income of $1.92 billion for the quarter, growing by nearly 19.25% from $1.61 billion a year ago.
The stock was trading at $681.48 per share at close on Feb. 1 following a 24.64% jump over the past year for a market capitalization of $276.86 billion and a 52-week range of $501.11 to $893.95.
GuruFocus assigned a score of 7 out of 10 to the company's financial strength and 9 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $925 per share.
Texas Instruments Inc
The second stock that makes the cut is Texas Instruments Inc. (TXN, Financial), a Dallas-based global semiconductor manufacturer.
Texas Instruments saw its quarterly revenue increase by 18.38% year over year to about $4.83 billion as of December 2021, up from $4.08 billion in the prior-year quarter.
The company recorded net income of $2.14 billion for the quarter, growing by nearly 26.63% from $1.69 billion a year ago.
The stock was trading at $181.29 per share at close on Feb. 1 following a 9.85% rise that occurred over the past year, determining a market capitalization of $171.23 billion and a 52-week range of $161.67 to $202.26.
GuruFocus assigned a score of 7 out of 10 to the company's financial strength and 9 out of 10 to its profitability.
On Wall Street, the stock holds a median recommendation rating of overweight with an average target price of about $201.75 per share.
Applied Materials
The third company that qualifies is Applied Materials Inc. (AMAT, Financial), a Santa Clara, California-based supplier of manufacturing equipment, services and software to semiconductor producers.
Applied Materials reported revenue of $6.123 billion for the fiscal quarter ended Oct. 31, 2021. This represents a 30.61% increase from $4.688 billion in the same quarter of 2020.
Net income was $1.712 billion, an increase of 51.37% over net income of $1.131 billion reported in the year-ago quarter.
The stock was trading at around $138.61 a share as of Feb. 1 after rising 37.89% over the past year. It has a market cap of $122.13 billion and a 52-week range of $99.82 to $167.06.
GuruFocus assigned a score of 7 out of 10 to the company's financial strength and 9 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight with an average target price of $173.69 per share.
