6 Tech Stocks That Rate Better Than Apple
So I'm curious: Which stock is next? Are there other tech companies that have even better metrics than Apple and could be up-and-comers?
To find these stocks, I selected two key metrics on which I place a high degree of importance when evaluating a stock from a fundamental perspective: return on equity and gross margins. The companies I found have ROE greater than Apple's 45.6% and gross margins greater than Apple's 44.7%.
Here are six tech stocks that rater better than Apple .
Revenue for the company grows in the low double-digit percentages, but given Gartner's business model as a service provider, its high gross margin rate converts revenue growth into even higher earnings growth. Earnings per share are expected to rise at a percentage rate in the mid-20s in 2012 and 2013.
With the stock selling at 25 times current year's earnings and a PEG ratio of just 1.06, Garner makes for a compelling investment. Linear Technologies
Linear Technologies (LLTC) is a specialized semiconductor company that produces analog integrated circuitry for a wide range of end users in industries such as telecommunications, networking, computers and factory automation. Revenue for the fiscal year ended June 2011 rose 27%.
The company is making a strategic decision to reduce its exposure to the consumer and cell-phone markets as those customers are becoming less reliant on analog-based technology and increasing exposure to the more rapidly growing industries in the global economy such as industrial, automotive, communication infrastructure and military. While this strategy may yield some short-term consequences, in the long term, the company will benefit. The market has already priced these decisions into the company's stock price.
In addition, Linear Technology pays an above-market-average dividend of 3%.
Linear Technology was also featured recently in " 8 Stocks Rising on Monster Volume ." IBM
IBM(IBM) , known by many on Wall Street by its nickname "Big Blue," was regarded by the last two generations as a computer hardware company. It made money for investors for decades by manufacturing hardware and software for large mainframe computers.
Then, in the 1980s, IBM pioneered the personal computer. Its big mistake was focusing on the hardware and allowing Microsoft (MSFT) to engineer and control the operating system. Now IBM is focused entirely on information technology consulting, systems integration and software.