The following tech companies have seen 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.
Advanced Micro Devices Inc.
The first stock that meets the criteria is Advanced Micro Devices Inc. (AMD, Financial), a Santa Clara, California-based global semiconductors manufacturer.
Advanced Micro Devices Inc.'s quarterly revenue increased 71% year over year to $5.887 billion as of the March 2022 quarter. Revenue was $3.445 billion in the prior-year quarter.
The company recorded net income of $786 million for the quarter, improving nearly 42% from $555 million a year ago.
The stock was trading at $81.57 per share at close on June 17 following a 1.24% decline over the past year for a market capitalization of $132.18 billion and a 52-week range of $79.43 to $164.45.
GuruFocus assigned a score of 9 out of 10 to the company's financial strength and 6 out of 10 to its profitability.
On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $136.61 per share.
Toast Inc.
The second stock that makes the cut is Toast Inc. (TOST, Financial), a Boston, Massachusetts-based provider of ordering and payment technologies to restaurant customers in the United States and Ireland. These can be used at the counter, via cell phone and in various other situations.
Toast Inc.'s quarterly revenue increased 89.7% year over year to $535 million as of the March 2022 quarter. Revenue was $282 million in the prior-year quarter.
Although the company reported a net loss of $23 million for the quarter, it was a significant improvement from the net loss of $99 million for the prior year’s quarter.
The stock was trading at $13.12 per share at the close of regular hours on June 17 following a 79.01% drop that occurred over the past year, determining a market capitalization of $6.72 billion and a 52-week range of $11.91 to $69.93.
GuruFocus gave the company an 8 out of 10 financial strength rating, while profitability is still negative on various metrics except for gross margin. The company is still trying to find the right balance in resource allocation in order to turn a profit.
On Wall Street, the stock holds a median recommendation rating of overweight with an average target price of about $22.43 per share.
Qualcomm Inc.
The third company that qualifies is Qualcomm Inc. (QCOM, Financial), a San Diego-based manufacturer of semiconductors for mobile devices and other wireless products.
Qualcomm Inc.'s quarterly revenue increased 40.7% year over year to $11.164 billion as of the quarter that ended on March 27. Revenue was $7.935 billion in the prior-year quarter.
For the quarter, the company posted net income of $2.934 billion, which was a significant improvement of 66.5% from the $1.762 billion net income recorded for the prior-year quarter.
The stock was trading around $120.99 a share as of June 17 after falling 9.68% over the past year. It has a market cap of $135.51 billion and a 52-week range of $118.36 to $193.58.
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 $204.06 per share.
