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Demand for technology products and services continues to grow, providing the technology sector with significant growth opportunities. So it might be wise to download his three top tech stocks: Cognizant Technology Solutions (CTSH), Nomura Research Institute (NRILY) and Hackett Group (HCKT) into your portfolio. read more….
Despite pervasive market uncertainty, the technology industry is constantly evolving, pushing boundaries, and driving innovation across a range of disciplines. Additionally, demand for AI technology, expertise and solutions continues to soar as businesses and industries realize the immense value that artificial intelligence (AI) can bring.
Against this backdrop, tech stocks are fundamentally healthy, according to Cognizant Technology Solutions Corporation (CTSHMore), Nomura Research Institute, Ltd. (Niriri), and The Hackett Group, Inc. (HCKT), which could be a solid portfolio addition. But before we dive into the fundamentals of hot stocks, let’s take a look at how the tech industry has fared.
After initially appearing to be struggling after the pandemic, the tech sector has made a strong comeback, fueled by tremendous demand for AI across sectors. The sector’s strong performance is evidenced by a 30.2% year-to-date gain in the tech-heavy Nasdaq Composite Index.
Moreover, the global AI market is expected to reach $136.55 billion in 2022 and grow rapidly. CAGR of 37.3% From 2023 to 2030.
In addition, rapid digitization, prevalence of enterprise applications, and widespread remote work have led to a surge in IT outsourcing.
Revenue from the IT outsourcing sector is expected to reach a milestone of approximately $430.5 billion by 2023. CAGR 8.1% The market size from 2023 to 2027 will reach approximately $587.3 billion by 2027.
Considering all the factors above, the long-term outlook for the tech sector looks bright, thanks to advances in AI and persistent demand for innovative products and services. With that said, let’s take a closer look at the fundamentals of the aforementioned stocks.
Cognizant Technology Solutions Inc. (CTSHMore)
CTSH is a renowned professional services firm providing consulting, technology and outsourcing services worldwide. The company operates through his four segments. Health Sciences; Products and Resources. communications, media and technology.
On June 21, CTSH announced a partnership with Accuray Incorporated (arrayA global leader in high-tech targeted cancer therapies, the company will help implement SAP S/4HANA to enhance data analysis capabilities and improve operational efficiency for its radiotherapy business.
By leveraging CTSH’s services, ARAY aims to deploy SAP to enhance its infrastructure and provide enhanced patient care. Moreover, this reflects a strong demand for CTSH’s services across various sectors.
On May 9th, CTSH and Google Cloud announced an expanded partnership to accelerate the integration of AI into businesses around the world. This partnership helps clients start, migrate, and modernize their AI initiatives to meet their needs and current progress. Additionally, the company will be able to scale his AI capabilities globally.
For the first quarter of the fiscal year ending March 31, 2023, CTSH had revenues of $4.81 billion and operating revenues of $702 million.Company’s net income Adjusted EPS increased 3%, 2.8% year over year to $580 million and adjusted EPS was $1.11.
Cash and cash equivalents for the same period were $2.46 billion, up 12.2% from $2.19 billion as of December 31, 2022.
Street expects CTSH to generate $4.84 billion in revenue in the second quarter, which ends June 30, 2023. His EPS for the quarter he is expected to be $0.99. Moreover, EPS is expected to improve at an annualized rate of 5.4% over the next five years. Plus, he beat EPS expectations in three of the four quarters since then, which is encouraging.
CTSH’s stock has surged 12.9% over the past six months to close at $62.60.
of CTSH power rating It reflects this strong outlook. This stock has an overall B rating, which is equivalent to a “buy” in our own rating system. POWR Ratings values stocks by 118 different factors, each with its own weighting.
The quality grade is A and the value grade is B. A rating out of 9 brands Outsourcing – Technical Services It ranks second in the industry. To see additional CTSH ratings on growth, momentum, stability, and sentiment, click here.
Nomura Research Institute, Ltd. (Niriri)
Headquartered in Tokyo, NRILY provides research, business consulting and system services. The company operates in his four segments. Financial IT Solutions; Industrial IT Solutions; and IT Infrastructure Services.
On June 1, NRILY successfully developed a carbon tracking system called NRI-CTS. The system is designed to accurately calculate carbon dioxide emissions and track greenhouse gas emissions according to the technical specifications outlined in Pathfinder Networks ver1 and ver2.
Based on this technical specification, the NRI-CTS prototype has completed the interoperability test “Connectathon,” which has been conducted since April 17, 2023. NRILY’s achievements mean that the company is one of the world’s pioneers in developing solutions compliant with the Pathfinder Network standards.
On March 23, NRILY announced the launch of the latest version of its system operation management solution, “Senju Family 2023.” The new version introduces the configuration management tool “Senju Configuration Manager (Senju/CM)” to deal with the increasing threat of cyberattacks.
With this tool, you can implement reliable countermeasures to address vulnerabilities on your managed systems.
NRILY’s revenue for the fiscal year ended March 31, 2023 increased 13.2% year-on-year to ¥692.17 billion ($4.86 billion). Operating profit increased by 5.3% year-on-year to 111.83 billion yen ($785.58 million).
The company’s profit before tax and EPS were 108.49 million yen ($762.12 million) and 128.92 yen, up 3.7% and 6.9% year-on-year. In addition, gross profit increased by 11% year-on-year to 239.83 billion yen ($1.69 billion).
Analysts expect NRILY’s second quarter 2024 revenue, which ends September 30, 2023, to grow 7.5% year-on-year to $1.26 billion. Over the past three months, the stock has gained 26.5% and closed at $28.82 in last trade.
NRILY’s strong fundamentals are reflected in the POWR rating. The overall rating is B, which is equivalent to “Buy” in our own rating system.
It has an A grade for stability. It is ranked 3rd in the same A rating industry. click here See NRILY’s ratings on growth, value, momentum, sentiment and quality.
Hackett Group, Inc. (HCKT)
HCKT operates primarily as a strategic advisor and technology consulting firm in the United States, Europe, and internationally. The company operates through his three segments of Global Strategy and Business Transformation. Oracle solutions; and SAP solutions.
On May 2nd, HCKT division Answerthink partnered with Nagarro to sell the ComplianceNow suite to US companies using SAP software. ComplianceNow, a product line within Nagarro, consists of a variety of tools designed to enhance and streamline SAP compliance procedures.
The main goal of this collaboration is to provide customers with SAP-certified products that drive innovation, simplify processes, and provide cost-effective solutions.
On April 13, HCKT announced the launch of a new research project under its Market Intelligence Service aimed at evaluating and ranking financial and accounting outsourcing providers.
The study includes various aspects of financial operations and analysis, including purchase-to-pay, customer-to-cash, general accounting, consolidated and regulatory reporting, control, risk management, and financial planning and analytical functions.
This project is expected to provide valuable insight and guidance to organizations when selecting a financial and accounting outsourcing provider.
HCKT’s total revenues for the first quarter ended March 31, 2023 were $71.23 million, while total costs and operating expenses decreased 3.7% year-on-year to $59.98 million.
For the same period, the company posted adjusted net income of $9.96 million, or earnings per share of $0.37. Total current liabilities were $46.26 million, down 22.4% from $59.6 million as of December 30, 2022.
Consensus EPS guidance for the third quarter (ending September 30, 2023) was $0.40, representing an 8.1% improvement year over year. Consensus earnings forecast for the next quarter is $75.18 million, up 4.4% year-over-year.
Additionally, the company has a history of stellar performance surprises, beating consensus EPS estimates in each of its subsequent four quarters.
Shares have surged 24.1% over the past three months to close at $21.76.
It’s no surprise that HCKT has an overall rating of B, which is equivalent to a ‘buy’, in its own rating system. B grade for stability and quality. Ranked 1st out of 9 brands in the same industry.
In addition to the POWR ratings above, there are also HCKT ratings for growth, value, momentum and sentiment.Get all HCKT assessments here.
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CTSH shares were trading down $0.67 (-1.07%) to $61.93 per share Friday afternoon. Year-to-date, CTSH is up 9.26%, while the benchmark S&P 500 index is up 14.39% over the same period.
About the Author: Anushka Mukherjee
Anushka’s ultimate goal is to provide investors with critical knowledge to enable them to make informed investment choices and achieve long-term sustained economic prosperity. .
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