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The technology industry is expected to thrive this year amid rising spending and widespread adoption of digital technologies. Investors may therefore be wise to buy tech stocks with strong fundamentals, Fuji Electric (FELTY) and Bellhughes (BELFB), despite macroeconomic headwinds. keep reading.
Banking crises and heightened recession risks have raised expectations that the Fed will begin cutting rates later this year, helping to drive lower bond yields and tech stocks down. lift moreAlso, given the industry’s solid long-term potential, a quality tech stock is Fuji Electric Co., Ltd. (Felty) and Bell Hughes Co., Ltd. (belf) may be an ideal investment.
According to Peter Voser, chairman of ABB, the Swedish-Swiss tech and engineering giant, the global shortage of semiconductors is affecting the tech industry, causing supply chain disruptions. ResolvingHe believes the worst of the chip supply crisis has subsided.
Moreover, despite economic uncertainty, the technology industry is experiencing strong demand.Gartner Globally IT spending will increase by 5.1% This year it reached $4.6 trillion year-on-year.
Moreover, in recent years, the global artificial intelligence market has experienced significant growth, mainly due to the spread of digital technology. This trend is expected to continue, and increasing demand for artificial intelligence in various industries such as automotive, banking, finance, and manufacturing is expected to be a key driver of market growth.
The International Data Corporation’s (IDC) Worldwide Artificial Intelligence Spending Guide, which covers artificial intelligence (AI)-focused software, hardware, and services, shows that worldwide spending on artificial intelligence (AI) is 27% We expect to reach an increasing CAGR. $300 billion By 2026.
Take a look at the stocks above.
Fuji Electric Co., Ltd. (Felty)
Headquartered in Tokyo, Japan, FELTY develops power semiconductors and electronics solutions domestically and internationally.
FELTY’s forward looking EV/Sales of 0.82x is 49.1% lower than the industry average of 1.61x.ahead of it price/sales A multiple of 0.74 is 42.3% lower than the industry average of 1.28.
FELTY’s 12-month asset turnover ratio of 0.89x is 11.7% higher than the industry average of 0.80x. The return on capital over the last 12 months was 8.08%, 15.2% above the industry average of 7.01%.
FELTY pays out $0.20 per year in dividends. This translates to a yield of 2.10% at current market prices, compared to a four-year average dividend yield of 2.44%. Dividend payments have grown at a CAGR of 25.1% over the past five years.
For the nine months ended December 31, 2022, FELTY’s net sales increased 11.4% year-on-year to ¥690.78 billion ($5.21 billion). Net income increased 16.1% year-on-year to ¥33.22 billion ($250 million), and net income per share increased 14% year-on-year to ¥0.75.
FELTY’s revenue is expected to grow 69.7% year-over-year to $7.54 billion during the current fiscal year ending March 2023.
The stock rose 3.9% year-to-date and closed the last trading session at $9.76.
felties POWR rating reflects this promising outlook. The stock has an overall rating of B, which translates to a ‘Buy’ in our proprietary rating system. POWR Ratings evaluate stocks by 118 different factors, each with its own weighting.
B grade for value and momentum.This stock ranks second out of 42 stocks Technology – Electronics industry.
click here See FELTY’s POWR Ratings (Growth, Quality, Stability, Emotion).
Bellfuse Co., Ltd. (belf)
BELFB designs, manufactures, markets and markets products used in the networking, telecommunications, computing, general industrial, high speed data transmission, military, commercial aerospace, transportation and e-mobility industries.
BELFB announced on February 6 that it has entered into and completed a minority investment agreement with Germany-based innolectric AG. innolectric was founded in 2016 through a privately owned group and aims to be a platform-based business in the field of power electronics for eMobility, especially on-board fast charging for commercial vehicles.
This passive investment creates a strategic alliance with a broad focus on EV on-board power electronics, but with a particular focus on next-generation fast-charging technology.
BELFB’s 12-month EV/EBITDA was 6.70x, 50.4% lower than the industry average of 13.49x. The price/sales multiple over the last 12 months is 0.67, 75% lower than the industry average of 2.69.
Additionally, BELFB’s 12-month EBITDA margin of 12.96% is 32.5% higher than the industry average of 9.78%. Net profit margin for the last 12 months was 8.05%, 198% higher than the industry average of 2.70%.
On February 28, 2023, BELFB announced a quarterly dividend of $0.07 payable on May 1, 2023.
BELFB pays $0.28 per year in dividends. This translates to a yield of 0.79% at current market prices, compared to a four-year average dividend yield of 1.84%. We have also paid dividends for 23 consecutive years.
BELFB’s net sales for the fourth quarter ended December 31, 2022 were $169.2 million, an increase of 15% compared with the same period last year. Gross profit was $52.51 million, up 33.7% year-over-year. Additionally, net earnings increased 75.3% year-over-year to $14.04 million, and net earnings per common share increased 76.7% year-over-year to $1.06.
BELFB’s EPS is estimated to increase 95.1% year-over-year to $0.80 for the current fiscal quarter ending March 2023. Revenue for the quarter is expected to increase 7.1% year over year to $146.49 million. In addition, it exceeded consensus earnings and EPS estimates in each of the four subsequent quarters.
The stock has gained 133.1% over the past nine months and closed its last trading session at $36.27.
BELFB’s strong fundamentals are reflected in its POWR rating. The stock has an overall rating of A, which corresponds to a strong buy in our proprietary rating system.
BELFB also has an A grade for value and emotion and a B grade for growth and quality. No. 1 in the industry.
To access additional assessments of BELFB Stability and Momentum, click here.
Consider this before making your next trade…
We are still in the middle of a bear market.
Yes, some special stocks can go up, as discussed in this article. However, most will fall as the bear market claws lower than ever this year.
So you need to discover “”.Revision: 2023 Stock Market Outlook‘ was just created by 40-year investment veteran Steve Reitmeister. So he explains:
- Start now with the 5 Warning Signs of a Bear Return!
- Banking crisis worries another nail in the coffin
- How far will stock prices fall?
- 7 timely trades to profit on the way down
- Plans to bottom out for the next bull market
- 2 Trades with over 100% upside potential when new bulls appear
- etc!
Watch this timely presentation before making your next trade.
Revision: Stock Market Outlook 2023 >
FELTY shares were trading at $9.66 per share on Friday morning, down $0.11 (-1.08%). Year-to-date, FELTY is up his 2.88%, while the benchmark S&P 500 index is up his 6.52% over the same period.
About the Author: Nidhi Agarwal
Nidhi’s passion for capital markets and wealth management inspired him to pursue a career as an investment analyst. She has a Bachelor’s degree in Finance and Marketing and is pursuing the CFA program. Her fundamental approach to stock analysis helps investors identify the best investment opportunities.
post Two top tech stocks that won’t break the bank first appeared StockNews.com