If you love tech and are new to investing, it’s crucial to focus on established companies with solid financials and focused, proven business models rather than gamble on any stock without a strong foundation.
We’ve landed on three high-quality tech stocks that meet important criteria, such as positive net income, market valuations of $100+ billion, and favorable analyst recommendations. With these comes excellent exposure to the tech market, which increases the likelihood of long-term wealth and success.
These are as solid as they come. They’re performing very well, and the analysts love them…
Qualcomm Inc (QCOM)
As a leading semiconductor company, Qualcomm (QCOM) focuses on advanced broadband technology and outsources chip manufacturing. QCOM derives a large part of its sales from Apple (AAPL). Despite a cyclical industry downturn, QCOM made more than $2 billion in net income last quarter and experienced growth in its automotive and IoT (Internet of Things) businesses. With its significant revenue from smartphone makers and intellectual property licensing, QCOM stands to benefit from the expanding handset market and emerging opportunities in sectors like automotive and IoT. How will AI play a role?
QCOM stock is up year-to-date by 4.80% yet is still trading near the bottom of its 52-week price range, having room to increase. With an ROE (return on equity) of 64.36% and a PEG (price/earnings/growth) ratio of 0.67x, QCOM is forecasted to report $8.5 billion in sales at $1.81 per share for the current fiscal quarter. Last quarter, it beat revenue projections by around $150 million, a 1.66% margin. QCOM has an annual dividend yield of 2.78% and a quarterly payout of 80 cents ($3.20/year) per share. With a 10-day average volume of 7.04 million shares, QCOM’s average price target is $135, with a high of $152 and a low of $95, representing a potential price upside of 32%. QCOM has 21 buy ratings and nine hold ratings.
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Meta Platforms Inc (META)
Given the positive reception of META’s recent Threads launch, analysts from Bank of America Securities issued “buy” ratings for its stock. Despite skepticism about its impact on share prices, Wall Street remains highly optimistic about META. The timing of the Threads launch is also potentially very advantageous for META because, with the potential to attract users away from Twitter, especially considering recent decisions made by Elon Musk, Threads is well-positioned for success. An increasing number of users have already expressed their intentions to switch from Twitter to Threads. If this trend continues, it could provide the necessary momentum for META to continue its current upward trajectory.
META is currently up year-to-date by a whopping 142.61%, with a free cash flow of almost $14 billion and a PEG ratio of 0.98x. For the present fiscal quarter, META is forecasted to report $30.9 billion in sales at $2.89 per share. Most recently, META defeated Wall Street analysts’ EPS and revenue forecasts; it reported EPS of $2.20 per share vs. $1.95 per share as projected (a 13.07% margin) and revenue of $28.64 billion vs. $27.66 billion as expected (a 3.57% margin). With a 10-day average volume of 26.08 million shares, META has a median price target of $295, with a high of $400 and a low of $100; this indicates a potential price upside of 37%. META has 47 buy ratings and eight hold ratings.
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Broadcom Inc (AVGO)
Broadcom (AVGO) is a versatile semiconductor company known for its analog devices. AVGO serves diverse markets, and while having a significant stake in the smartphone market, the firm has diversified through strategic acquisitions such as picking up Brocade, CA Technologies, Symantec’s enterprise security business, and the ongoing VMware deal. With the rise of 5G networks, the demand for radio frequency devices is also set to increase, benefiting AVGO. Its strong presence in data centers and cloud computing fuels growth that could move well beyond traditional semiconductor sales.
AVGO’s stock is up year-to-date by 51.66% and is forecasted to report sales of $8.9 billion at $10.43 per share for the current quarter; it holds a free cash flow of $13.67 billion. AVGO, at its latest earnings call, reported EPS of $10.32 per share vs. $10.14 per share as expected by analysts (a 1.75% win) and revenue of $8.73 billion vs. the $8.71 billion predicted (a slight 0.31% win). AVGO also reported year-over-year growth in crucial areas such as revenue (+7.77%), net income (+34.40%), EPS (+37.44%), and net profit margin (+24.72%). AVGO has a 2.17% annual dividend yield, a quarterly payout of $4.60 ($18.40/year) per share, and a 54.47% payout ratio. With a 10-day average volume of 2.21 million shares, AVGO has an average price target of $900, with a high of $1050 and a low of $800; if you can afford it, this suggests the potential for an almost 24% price jump. AVGO has 22 buy ratings and four hold ratings.
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