As technology stocks remain in the Fed’s hockey position, they could face a strong return in the near term to the overwhelming demand for advanced technology products and services. So, we think it might be wise to place bets on quality technology stocks Avid Technology (AVID), Box (BOX), Rambus (RMBS), and Celestica (CLS). Based on the strong growth traits of these companies, their shares have risen more than 5% year on year and are rated strong buy or buy in our proprietary rating system. To read.
Despite the Fed’s hoax position, technology stocks have returned a degree of late price stability. As investors seem to have absorbed most of the market negativity, the industry may soon recover due to the steady demand for technology products and services. According to the Computing Technology Industry Association, the U.S. technology industry is expected to make a registration 2% increase in jobs This year.
With continued hybrid lifestyles and rapid global digitization, demand for technology products is expected to increase. Proof of investor interest in technology industry Technology Select Sector SPDR ETF (XLK(SPDR S&P 500 Trust ETF returns 7.8% last month)Spy) 5.7% return.
Against this background, we think that the stock of fundamentally powerful technology Avid Technology, Inc. Betting on it can be a wise thing to do.AVID), Box, Inc. (BoxRambus Inc. (RMBS), And Celestica Inc. (CLS) Each of them has gained more than 5% of the price per year due to their strong growth traits and has been rated our Strong Buy or Buy POWR rating Method.
Avid Technology, Inc. (AVID)
Together with its affiliates, Burlington, Mass. Avid develops, markets and supports software and integrated solutions for creating, managing and distributing video and audio content worldwide.
On March 1, 2022, Jeff Rosica, CEO and President of AVID, stated, “As we begin 2022, we see strength across the end market for our solutions, and enable us to make selective investments in new products and innovations.” Our customers are keen to continue to provide industry-leading solutions that rely on our company’s strategy and our long-term growth and profitability goals. “
For the fourth quarter ended December 31, 2021, AVID’s total net income reached 9 119.06 million, up 14.2% year-over-year. Its non-GAAP net income came in at 20.87 million, up 37% year-over-year, while its non-GAAP EPS was $ 0.46, up 39.4% year-over-year.
19.95% forward of AVID EBITDA Growth is 19.1% higher than the industry average of 16.75%.
AVID’s revenue is expected to grow 8.1% to $ 475.71 million in 2023. Its EPS is projected to increase by 17.7% to $ 1.73 in 2023. Also, it exceeded the EPS estimate in each of the four trailing quarters. The stock rose 12.5% year-to-date to close at .3 35.31 in yesterday’s trading session.
AVID’s strong fundamentals are reflected in its POWR ratings The stock has an overall B rating, which indicates a buy in our proprietary rating system. The POWR rating evaluates the stock by 118 individual components, each with its own weight.
Avid has an A grade for quality and a B grade for growth and feel. In Technology – Services Industry, it ranks 7th out of 81 stocks. Click Here View additional POWR ratings for Avid for quality, speed, and stability.
Note that Avid is one of the few stocks currently handpicked in the Reitmeister Total Return portfolio. Learn more here.
Box, Inc. (Box)
BOX provides a cloud content management platform that enables companies of all sizes to manage and share their content from anywhere on any device. The Los Altos, California-based company has more than 105,000 payment agencies and its solutions are offered in 25 languages and has 77.70 million registered users.
On March 2, 2022, Dylan Smith, Co-Founder and CFO of BOX, stated, “With our sharp focus on profitable growth, capitalizing on our expanding market opportunities, we expect to provide one more year of accelerating revenue growth and expanding operating margins. . For the full year 2023. “
For the fourth quarter ended January 31, 2022, BOX’s revenue rose 17.3% year-on-year to $ 233.36 million. Its net loss was $ 4.33 million compared to $ 4.94 million in the year-ago period. Also, its total current assets for the period ended January 31, 2022 were $ 916.56 million, compared to $ 879.29 million for the period ended January 31, 2021.
BOX’s 18.35% forward EBITDA growth is 9.6% higher than the 16.75% industry average.
Analysts expect BOX’s revenue to reach $ 993.51 million in 2023, representing a 13.6% year-over-year increase. The company’s EPS is expected to increase by 32.9% to 13 1.13 in 2023 It surpassed the road EPS estimate in each of the next four quarters The stock has risen 11.7% year-over-year to close at .8 28.84 in yesterday’s trading session.
BOX has an overall B rating, indicating a buy in our proprietary rating system. It has an A grade for growth and quality and a B grade for value. BOX ranked # 8 Technology – Services Art Click Here See BOX’s additional POWR ratings for momentum, stability and feel.
Rambus Inc. (RMBS)
Sunnyvale, Calif.-based RMBS, the pioneer of high-performance memory subsystem, supplies semiconductor products to the United States, Taiwan, South Korea, Japan, Europe, Canada, Singapore, China and internationally. The company offers DDR5, DDR4, and DDR3 memory interface chips.
On March 9, 2022, RMBS announced that its Rambus Root of Trust RT-640 Embedded Hardware Security Module (HSM) has received Automotive Safety Integrity Level B (ASIL-B) certification in accordance with ISO 26262 international standards. “With the help of Rambus RT-640 embedded HSM, automated manufacturers get the best of both worlds: strong cyber security anchored to the hardware with the assurance of effective ASIL-B security,” said Neeraj Paliwal, General Manager, Security IP RMBS.
RMBS total revenue for the fourth quarter ended December 31, 2021 was $ 91.78 million, up 48.2% year-over-year. Also, its net income was $ 6.11 million, compared to a previous loss of $ 12.05 million. Moreover, its EPS came in at $ 0.05, compared to a loss of $ 0.11 per share for the period a year ago.
1,084.02% year-over-year EBITDA growth of RMBS is significantly higher than the industry average of 26.20%.
Analysts expect RMBS revenue to grow 13.3% year-on-year to $ 513.40 million in FY2022. Its EPS is expected to grow at an annual rate of 8.4% for the next five years. This exceeds the road EPS estimate in each of the four back quarters. The stock rose 5.8% year-on-year to 28.62 in yesterday’s trading session.
Not surprisingly, RMBS has an overall B rating, which is equivalent to a buy in our proprietary rating system. Also, it has an A grade for growth and a B grade for quality. RMBS ranks # 31 out of 96 A-rated stocks Semiconductor and wireless chip Art Click Here Get all RMBS ratings (quality, speed, stability, and feel).
Click here to check out our Semiconductor Industry Report for 2022
Celestica Inc. (CLS)
Headquartered in Toronto, Canada, CLS provides hardware platforms and supply chain solutions in North America, Europe and Asia. It works through Advanced Technology Solutions and Connectivity and Cloud Solutions.
On January 26, 2022, Rob Mayonis, President and CEO of CLS, stated, “We enter 2022 with confidence that Celestica is in a good position to succeed. We are focused on successfully managing the dynamic macro environment as well as meeting our 2022 performance expectations. “
For the fiscal fourth quarter ended December 31, 2021, CLS’s revenue was 1.51 billion, up 9.1% year-over-year. Its net income for the period was $ 31.90 million, up 58.7% year-over-year, while its EPS was 26 0.26, up 62.5% year-over-year.
32.65% year-over-year EBITDA growth of CLS is 26.20% higher than the industry average of 24.6%.
CLS’s revenue is expected to reach 6.34 billion in FY 2022, representing an annual growth of 12.4%. Also, the company’s EPS is expected to grow 24.1% per annum for the next five years. This exceeds the road EPS estimate in each of the four back quarters. The stock rose 6% year-over-year to 11.36 in yesterday’s trading session.
CLS has an overall A rating, which is equivalent to a strong buy in our proprietary rating system. It has an A grade for growth and a B grade for value and feeling. CLS ranks 5th out of 81 stocks Technology – Services Art Click Here See CLS ratings for momentum, stability and quality.
AVID shares were unchanged in premarket trading on Wednesday. Year-to-date, AVID rose 8.41%, compared to a -5.64% increase in the benchmark S&P 500 index over the same period.
Author Profile: Riddhima Chakraborty
Riddhima is a financial journalist who is interested in analyzing financial instruments. With a master’s degree in economics, he helps investors make informed investment decisions through his insights.
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