U.S. technology stocks, the second- best industry of the past decade, have fallen to the cheapest levels in at least seven years and are vulnerable to more losses as analysts reduce second-quarter profit estimates.
Earnings at computer companies will fall 5.5 percent in the three months through June as consumers and government agencies cut spending, according to more than 2,000 analyst estimates tracked by Bloomberg. The group, led by Apple Inc. (AAPL) and International Business Machines Corp. (IBM), trades at 13 times projected profit, the lowest level compared with the Standard & Poor�� 500 since Bloomberg began compiling the data in 2006.
Bulls say the unprecedented discount means technology stocks, which tend to lead during expansions, are too cheap to pass up as the world economy grows. Bears say the shares will remain the worst-performing group in the S&P 500 (SPX) this year with companies and governments spending less on technology as growth weakens in Europe and China. President Barack Obama�� proposed budget would reduce spending on information technology by $2.5 billion by 2015, according to Bloomberg Industries.
Best Information Technology Stocks To Watch Right Now: Mitie Grp(MTO.L)
MITIE Group PLC, through its subsidiaries, provides strategic outsourcing and energy services in support of the buildings, facilities, and infrastructure of clients in the United Kingdom and internationally. It operates through four divisions: Facilities Management, Technical Facilities Management, Property Management, and Asset Management. The Facilities Management division offers facilities consultancy, management, and service delivery to clients. It provides services in the areas of business services, client services, PFI businesses, cleaning, landscaping, pest control, environmental services, security, and catering. The Technical Facilities Management division offers integrated facilities management services focusing on technology, engineering, and energy needs. Its services include mechanical and electrical engineering maintenance, mobile multi-site facilities management, specialist technical services, carboncare energy services, lighting design and maintenance, build ing management systems and controls, and compliance services. The Property Management division provides an integrated property management service, including mechanical and electrical engineering installation, and energy and general facilities management services, as well as maintenance, refurbishment, painting, roofing, interior fit-out, fire protection, plumbing, and heating. The Asset Management division offers the integration, management, and maintenance of technical assets, such as infrastructure projects, building services, and mechanical and electrical engineering, as well as energy design, generation and certification. The company serves government, social housing, education, healthcare, finance and professional, manufacturing, technology and communications, retail, property management, utilities, transport and logistics, construction, and leisure sectors. MITIE Group PLC was founded in 1987 and is based in Bristol, the United Kingdom.
Best Information Technology Stocks To Watch Right Now: Starpharma Holdings Ltd(SPL.AX)
Starpharma Holdings Limited, together with its subsidiaries, engages in the development and commercialization of dendrimer products for pharmaceutical, life science, and other applications primarily in the United States and Australia. The company?s lead sexual health product under development is VivaGel, a vaginal microbicide to prevent the transmission of sexually transmitted infections, including HIV and genital herpes, as well as for the treatment and prevention of bacterial vaginosis. It also licenses VivaGel for use as a condom coating. In addition, the company develops dendrimer for drug delivery and life science applications, including drug targeting, drug solubilisation, diagnostics, and pharmaceutical excipients. Further, it explores use of dendrimer technology in materials science applications, such as cosmetics, agrochemicals, coatings, adhesives, and water. The company was founded in 1996 and is headquartered in Melbourne, Australia.
Top High Tech Stocks To Buy Right Now: LinkedIn (LNKD)
LinkedIn Corporation operates an online professional network. The company, through its proprietary platform, allows members to create, manage, and share their professional identity online; build and engage with their professional networks; access shared knowledge and insights; and find business opportunities. Its platform also offers members with solutions, including applications and tools to search, connect, and communicate with business contacts, learn about career opportunities, join industry groups, research organizations, and share information. In addition, the company provides LinkedIn mobile applications across various platforms and languages, such as Android, Blackberry, iPad, and iPhone mobile devices; a public Website that allows developers to integrate its content and services into their applications; and a set of embeddable widgets to allow Web developers to include content from the company�s network into their Website or application. Further, it offers hiring solutions comprising LinkedIn Corporate Solutions that enable enterprises and professional organizations to find, contact, and hire qualified candidates; LinkedIn Jobs that allow enterprises and professional organizations to advertise job opportunities on the company�s network; and Subscriptions, which enable recruiters and hiring managers to find, contact, and manage potential candidates. Additionally, the company provides marketing solutions, such as LinkedIn Ads, a self-service platform that enable advertisers to build and target their advertisement to its members; and LinkedIn Ads for Enterprise, which are marketing solutions to target larger advertisers that receive dedicated account management and additional marketing solutions. It also offers premium subscriptions that are subscription packages designed for general professionals to manage their professional identity and connect with talent. LinkedIn Corporation was founded in 2002 and is headquartered in Mountain Vi ew, California.
Advisors' Opinion:- [By Quickel]
LinkedIn Corp. (NYSE: LNKD) has refused to suffer under the backlash of rival Facebook, and shares are holding up very well so far as 2013 gets underway. The challenge that faces LinkedIn is how to keep its more professional users active and how to win with job search functions. The social networking site has made a solid and steady effort that seems to be paying off, with op-ed pieces and serious content from some of the greatest names in business. That may end up being a new line of business. One serious criticism sure stood out from James O’Shaughnessy in Fortune, who said that no matter how he cuts the numbers he cannot make a P/E of 600 and valuation of over 12-times sales look good.
LinkedIn trades at $113, with a $12 billion market cap. The public company is now over a year old, and its 52-week trading range is $61.90 to $125.50. Analysts have a consensus value of $136.68, implying upside of about 21% if they are right. LinkedIn trades at close to 90-times its expected 2013 earnings.
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