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While macro headwinds have hit the tech sector hard, its long-term prospects are impressive. So fundamentally sound technology stocks Gartner (IT), Ricoh (RICOY), and Jabil (JBL) may be worth buying now. keep reading.
The technology sector has witnessed a significant drop amid a series of Federal Reserve (Fed) rate hikes. Additionally, layoffs are on the rise in the industry due to widespread recession concerns. But given the industry’s solid long-term outlook, I’m bullish on Gartner, a fundamentally sound tech stock.that),Ricoh Company, Ltd(Ricoy), and Jabil Inc. (JBL).
The industry is rapidly evolving with advanced technologies such as artificial intelligence (AI). The artificial intelligence chip industry is expanding due to the growing demand for smart homes and smart cities.
Companies are developing new technologies and conducting research and development to facilitate AI training and inference and increase efficiency.The artificial intelligence chip market is expected to grow rapidly CAGR 39.8% Until 2027.
Gartner predicts spending to reach $4.5 trillion by 2023, 2.4% Increased from the previous year.
Gartner Distinguished VP Analyst John-David Lovelock said: While inflation has devastated consumer markets and contributed to B2C layoffs, companies continue to spend more on digital business initiatives despite the global economic slowdown. “
Additionally, the global market for technical support services is expected to grow rapidly. CAGR 5.3%will reach $111 billion by 2033.
Investor interest in technology stocks is fueled by the Technology Select Sector SPDR ETF (XLK) The return rate over the last 3 months is 8.1%.
So IT, RICOY and JBL are worth owning now.
Gartner (that)
IT operates as a global research and advisory firm. The company operates through his three broad segments: meetings; and consulting.
this is gross margin 69.07% is 40.4% higher than the industry average of 49.19%, and the EBITDA margin of 24.01% is 114% higher than the industry average of 11.22%.
IT revenue increased 15.2% year-over-year to $1.18 billion in the fourth quarter of fiscal year 2022, which ended December 31. During the same period, the company’s Adjusted EBITDA increased 37.1% year-on-year to $421 million and its adjusted net income increased 18.3% year-on-year to $297 million. The company’s adjusted EPS was $3.70, up 23.7% year-over-year.
IT revenue is expected to grow 10.8% year-on-year to $6.42 billion in 2024. EPS is expected to grow 16% year-over-year to $10.94 in 2024. IT’s stock has surged 25.2% over the past nine months to close its last trading session at $334.60.
this is POWR rating reflects this promising outlook. The stock has an overall rating of B, which is equivalent to a buy in our proprietary rating system. POWR Ratings evaluate stocks by 118 different factors, each with its own weighting.
IT quality is A grade. within A rank Outsourcing – Technical Service In the industry, it ranks 3rd out of 9 stocks. To see additional his POWR ratings on IT Growth, Value, Stability, Sentiment and Momentum, click here.
Ricoh Company, Ltd(Ricoy)
Headquartered in Tokyo, Japan, RICOY is engaged in domestic and international integrated manufacturing services. The company’s segments include Imaging and Solutions. industrial products; and others.
RICOY has paid dividends for nine consecutive years. Over the past three years, RICOY’s dividend has increased at his CAGR of 22.9%. RICOY’s four-year average dividend yield is 2.1%, while its current dividend yield is 3.14%.
In terms of asset turnover over the last 12 months, RICOY’s 1.06% is 73.9% higher than the industry average of 0.61%.
RICOY’s sales for the third quarter ended December 31, 2023 increased 23.3% year-on-year to ¥555 billion ($4.07 billion). Operating income was 16.1 billion yen ($120 million), an increase of 27.8% year-on-year. over a year. Profit and EPS were 12.5 billion yen ($91.88 million) of 20.56 yen, up 4.2% and 11.6% year-on-year.
Consensus revenue estimate for fiscal 2024 is $16.61 billion, representing a 4.5% year-over-year increase. His EPS for the company is expected to be his $0.78 in 2024, up 13% year-over-year. Over the past six months, the stock has climbed his 6.3% to finish the last trading session at $7.93.
RICOY’s strong outlook is reflected in its POWR rating. The stock has an overall rating of A, which translates to a strong buy in our proprietary rating system. There is an A grade for growth and a B grade for value and stability.
1 out of 42 brands. Technology – Hardware industry. Click for additional POWR ratings on RICOY’s Sentiment, Momentum, and Quality. here.
J Building Co., Ltd. (JBL)
JBL provides products and services for manufacturers worldwide. The company operates in his two segments, Electronics Manufacturing Services and Diversified Manufacturing Services.
JBL has not paid a dividend for 16 consecutive years. JBL’s average four-year dividend yield is 0.75%, while its current dividend yield is 0.38%.
JBL’s 41.31% 12-month ROCE is 767% higher than the industry average of 4.75%. Last 12 months ROTA is 4.77%, 209.7% above the industry average of 1.54%.
JBL’s net revenues were $9.64 billion for the first quarter of the fiscal year ended November 30, 2022, an increase of 12.5% year-over-year. Gross profit increased 10.1% year-over-year to $743 million. Also, operating profit was $362 million, up 3.4% year-on-year.
Analysts expect JBL’s revenue to grow 3.1% year-on-year to $34.51 billion in 2023. EPS is estimated to grow 9.5% year-on-year to $8.38 in 2023. It has beaten EPS estimates in all four quarters. Over the past year, the stock has risen 59.8% to close its last trading session at $84.04.
JBL’s strong fundamentals are reflected in its POWR rating. It has an overall B rating indicating a purchase on their own rating system. There are also A grades for Momentum and B grades for Value, Sentiment, and Quality.
JBL ranks 9th out of 80 stocks. Technology – Service industry. click here Additional POWR ratings for JBL’s stability and growth.
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IT shares traded at $337.63 per share on Wednesday morning, up $3.03 (+0.91%). Year-to-date, IT is up 0.44% for him, while the benchmark S&P 500 index is up 4.35% for him over the same period.
About the Author: RashmiKumari
Rashmi’s passion for capital markets, wealth management, and financial regulatory issues led her to pursue a career as an investment analyst. With her Master of Commerce degree, she aims to help individual investors understand complex financial issues and make sound investment decisions.
post 3 tech stocks to buy today first appeared StockNews.com