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Tech Stocks You HAVE to Buy

Mar 06, 2019

Better Data for Better Investment DecisionsBetter Data for Better Investment Decisions
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  • As a follow up to our post yesterday, “US Tech Stock Correlation and Dispersion Favors Stock Picking Over Passive Investing,” where we concluded that current levels of correlation and dispersion in US tech stocks favor individual stock picking over a passive indexing strategy, today we highlight US tech stocks that have “Top Buy” ratings in both the US Information Technology Global Top Stock Idea model and their respective US market capitalization stock model.
     
  • We highlight these Top Buy tech stocks in order to provide our readers with potential individual tech stock ideas that look attractive relative to the broad US market and the US tech sector.  
     
  • As can be seen in the table below, we identified 12 US tech stocks that are rated “Top Buy” in both the US Information Technology Global Top Stock ideas mode and their respective market capitalization model.

Quantamize US Tech Models and US Market Capitalization Models Top Buys

Company Name Ticker Sector Industry Consumer Model Ranking Market Capitalization Model Ranking
HP INC HPQ Information Technology Technology Hardware, Storage & Peripherals US Information Technology Top Buy US Large-Cap Top Buy
TECH DATA CORP TECD Information Technology Electronic Equipment, Instruments & Components US Information Technology Top Buy US Large-Cap Top Buy
AMDOCS DOX Information Technology IT Services US Information Technology Top Buy US Large-Cap Top Buy
BOOZ ALLEN HAMILTON HLDG CP BAH Information Technology IT Services US Information Technology Top Buy US Large-Cap Top Buy
CDW CORP CDW Information Technology Electronic Equipment, Instruments & Components US Information Technology Top Buy US Large-Cap Top Buy
ITRON INC ITRI Information Technology Electronic Equipment, Instruments & Components US Information Technology Top Buy US SMID-Cap Top Buy
US CELLULAR CORP USM Communication Services Wireless Telecommunication Services US Communication Services Top Buy US SMID-Cap Top Buy
INSIGHT ENTERPRISES INC NSIT Information Technology Electronic Equipment, Instruments & Components US Information Technology Top Buy US SMID-Cap Top Buy
CDK GLOBAL INC CDK Information Technology Software US Information Technology Top Buy US Large-Cap Top Buy
SHENANDOAH TELECOMMUN CO SHEN Communication Services Wireless Telecommunication Services US Communication Services Top Buy US SMID-Cap Top Buy
SCIENCE APPLICATIONS INTL CP SAIC Information Technology IT Services US Information Technology Top Buy US SMID-Cap Top Buy
EBIX INC EBIX Information Technology Software US Information Technology Top Buy US SMID-Cap Top Buy

 

  • Tech Data Corporation (TECD) is a wholesale distributor of various technology products serving value-added resellers, direct marketers, retailers, and corporate resellers.
     
  • Tech Data Corporation trades at an extremely cheap forward 12M multiple of 8.66x its forward projected earnings as of March 5th, 2019’s close.  
     
  • Tech Data Corporation is set to report CY4Q2018 earnings on March 7th, 2019. 
     
  • Tech Data Corporation was highlighted as a Top Buy US Large-Cap & US Information Technology QuantShot in February, seen here.  
     
  • Tech Data Corporation is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
     
  • HP Inc. (HPQ) develops and sells personal computing devices, image and printing products, and other related technology solutions to customers across the globe through its three segments: Personal Systems; Printing; and Corporate Investments.
     
  • HP Inc. shares recently fell more than 17% intraday to USD$19.60 on February 28th, 2019 following weaker-than-expected quarterly financials that invoked a slew of analyst downgrades to the stock. After the recent sell-off, however, HP Inc. is trading at a notable discount with the stock’s trailing 12M P/E trading at 6.92x and forward 12M P/E trading at 9.99x as of March 5th, 2019’s close.  
     
  • HP Inc. reported first quarter 2019 adjusted EPS of USD$0.52 on February 27th, 2019 that matched consensus of USD$0.52.  HP Inc reported first quarter 2019 adjusted revenue of USD$14.7 billion that missed consensus of USD$14.9 billion.  HP Inc gave second quarter EPS guidance of 50-53 cents per share.
     
  • HP Inc. was highlighted as a Top Buy US Large-Cap & US Information Technology QuantShot in January, seen here.
     
  • HP Inc. is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
     
  • Insight Enterprises, Inc. (NSIT) develops and provides information technology hardware, software, and services solutions to customers across the globe.
     
  • Insight Enterprises posted an attractive return on equity of 17.9% to end FY2018, the highest in the company's history.  
     
  • Insight Enterprises reported CY4Q2018 adjusted EPS of USD$1.32 on February 14th, 2019 that largely suprised analyst expectations of USD$1.12. Insight Enterprises' revenue of USD$1.75bn in CY4Q2018 slightly misses analyst consensus of USD$1.76bn. 
     
  • Insight Enterprises was highlighted as a Top Buy US SMID-Cap QuantShot in January, seen here.  
     
  • Insight Enterprises is rated “Top Buy” in our US SMID-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
     
  • CDK Global Inc. (CDK) is headquartered in Illinois and provides software solutions targeted at automotive retailers across the globe.
     
  • CDK Global has displayed a strong ability to increase its profitability in recent history, growing its gross margin every year for the last 5 years from 39.1% in FY2014 to 48.0% in FY2018.  
     
  • CDK Global Inc. (CDK) announced FY2Q2019 adjusted EPS of USD$0.98 on February 5th, 2019 while consensus was for USD$0.91. CDK Global reported revenue of USD$590.4mm in FY2Q2019 while analysts expected USD$578.8mm. CDK Global sees FY2019 adjusted EPS at the higher end of between USD$3.70 and USD$3.80 while analysts expect USD$3.73.
     
  • CDK Global was highlighted as a Top Buy US Information Technology QuantShot in February, seen here.  
     
  • CDK Global is rated “Top Buy” in our US Large-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.
     
  • Ebix, Inc. (EBIX) offers software and e-commerce solutions mainly companies in the insurance, finance, healthcare, and e-learning industry.
     
  • Ebix, Inc. trades at a reasonable forward multiple of 12.72x its 12M forward earnings.  
     
  • Ebix, Inc. reported CY4Q2018 adjusted EPS of USD$1.06 on March 1st, 2019 while consensus was for USD$0.96. Ebix, Inc.'s revenue of USD$136.3mm in CY4Q2018 also beat analyst expectations of USD$130.4mm. 
     
  • Ebix, Inc. was highlighted as a Top Buy US SMID-Cap QuantShot in January, seen here.  
     
  • Ebix, Inc. is rated “Top Buy” in our US SMID-Cap Global Top Stock Ideas and “Top Buy” in our US Information Technology Global Top Stock Ideas.

 

Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS
Global Top Stock IdeasTOP LONG & TOP SHORT STOCK IDEAS FOR GLOBAL MARKETSMONTHLY TOP IDEAS FROM OUR MULTI-FACTOR QUANTITATIVE MODELS