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business news5 Tech Stocks to Buy Now
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MoneyShow.com Jul 26, 2011 1:00 pm
Tech is leading the way, so it's important to find some good companies with plenty of headroom.
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Innovation in information technology is fueling profit growth for several companies. Some you have heard of, others you have not.
Here are five information technology stocks to buy now:
1. Gartner (IT)
Proud to be in the business of information technology, Gartner is a $3.75 billion market cap company that touches many sides of the business. In addition to providing services to IT managers, the company also has an investment arm that provides technology research.
Its primary goal is to make companies more efficient through information technology. In doing so, Gartner is profitable—and rapidly growing.
In the current year, Wall Street expects Gartner to make a profit of $1.41 per share. That number jumps 26% to $1.78 in 2012. Shares trade for 27 times current-year estimates.
After peaking in late April and bouncing briefly at the end of June, shares of Gartner have been drifting lower. I would use the recent selling as an opportunity to buy this fast-growing IT firm.
2. Cardtronics (CATM)
This company is one of the largest owners and operators of automated teller machines in the United States. It has more than 37,000 machines under its umbrella, and is growing rapidly.
Shares of Cardtronics have been a steady performer in the market. Shares have doubled in value during the past 12 months. In that time, the company has met or bested analyst estimates for earnings.
For the current year, Wall Street is looking for a profit of $1.23 per share. In 2012, that profit is expected to grow by 16%, to $1.43 per share.
At current prices, Cardtronics trades for 19 times current-year estimates. That slight premium is justified given the potential of the company to dominate the kiosk ATM market.
3. IBM (IBM)
No longer just a PC and mainframe business, IBM is a dominant player in information technology and consulting. More importantly, Big Blue is a proven performer. At a time when other companies stagnate or fail to meet expectations, IBM continues to impress.
Most recently, the company’s earnings were better than expected. Excluding items, the company made a profit of $3.09 in the second quarter, surpassing the $3.02-per-share analyst estimate.
No positions in stocks mentioned.
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Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
