According to Gartner Inc, global spending on IT and telecom products and services is expected to grow 3.2% to $3.8 trillion in 2014, following a marginal growth of 0.4% during 2013, led by growth in enterprise software and device sales on the back of gradually recovering global economy. Gartner reports that spending growth of 6.9% in enterprise software will continue to lead the growth in 2014 versus 4.9% in 2013, while IT services will increase 4.6% in 2014 after a growth of 1.8% during 2013. Devices such as PCs, ultramobiles, mobile phones and tablets will see a growth of 4.4% in 2014 over last year.
Ubika Research has shortlisted 12 technology stocks which have registered strong growth in 2013 and are sitting with ample cash on their books without any debt. The selected stocks have a high proportion of cash with respect to their market cap. Additionally, these stocks have recorded strong growth in sales and earnings in 2013. Moreover, these stocks are trading at relatively low forward PE ratios in comparison to the industry average and provide high return on equity. We note that some of these stocks have accumulated gains during the past month, recording daily average trading volume in excess of 100,000.
|
Company Name |
Ticker |
Exchange |
Market Cap |
Last Price |
1-Month |
1-Month Price Change |
Cash and Equivalents ($MM) |
Sales Growth |
EPS Growth |
1-Yr Fwd PE Ratio |
Return on Equity |
|
Computer Programs & Systems |
CPSI |
NASDAQ |
692.5 |
62.03 |
132,610 |
0.7% |
11.7 |
9.6% |
8.9% |
19.1 |
51.5% |
|
Manhattan Associates Inc |
MANH |
NASDAQ |
2,329.0 |
30.73 |
554,355 |
-7.8% |
124.4 |
10.2% |
33.3% |
28.7 |
42.6% |
|
Silicom Ltd |
SILC |
NASDAQ |
324.5 |
45.45 |
113,684 |
-23.5% |
13.0 |
50.4% |
68.8% |
16.5 |
20.6% |
|
CommVault Systems Inc |
CVLT |
NASDAQ |
2,323.0 |
49.23 |
1,200,676 |
-27.0% |
434.0 |
21.9% |
62.5% |
24.3 |
15.7% |
|
Electronics For Imaging Inc |
EFII |
NASDAQ |
1,793.0 |
38.49 |
433,233 |
-7.0% |
177.1 |
11.6% |
30.7% |
21.2 |
15.6% |
|
Pegasystems Inc |
PEGA |
NASDAQ |
1,438.6 |
18.87 |
280,449 |
7.0% |
80.2 |
10.2% |
72.4% |
24.0 |
15.0% |
|
Sapient Corp |
SAPE |
NASDAQ |
2,234.2 |
15.76 |
624,353 |
-7.5% |
337.6 |
12.4% |
30.2% |
18.4 |
14.3% |
|
Virtusa Corp |
VRTU |
NASDAQ |
977.4 |
33.51 |
119,477 |
1.2% |
57.2 |
19.9% |
40.7% |
26.1 |
13.2% |
|
Netscout Systems Inc |
NTCT |
NASDAQ |
1,565.1 |
37.87 |
249,486 |
8.0% |
99.9 |
13.6% |
26.0% |
21.4 |
12.6% |
|
Monolithic Power Systems Inc |
MPWR |
NASDAQ |
1,422.2 |
36.84 |
372,596 |
-0.9% |
101.2 |
11.4% |
35.6% |
24.2 |
7.9% |
|
RealPage Inc |
RP |
NASDAQ |
1,460.3 |
18.53 |
438,313 |
4.8% |
34.5 |
17.0% |
300.0% |
27.5 |
6.4% |
|
The Descartes Systems Group Inc |
DSG |
TSX |
891.3 |
14.00 |
294,237 |
-7.4% |
37.6 |
11.3% |
36.8% |
18.3 |
6.2% |
Source: Bloomberg
Last Price and Market Cap are in their respective currencies
Company Description:
Computer Programs & Systems Inc (NASDAQ: CPSI)
Computer Programs and Systems, Inc., is a healthcare information technology company that designs, develops, markets, installs and supports computerized information technology systems to hospitals. The company also provides software and hardware products.
Manhattan Associates Inc (NASDAQ: MANH)
Manhattan Associates, Inc. provides information technology solutions for distribution centers. The solutions are designed to enable the efficient movement of goods through the supply chain. The company’s solutions optimize the receipt, storage, and distribution of inventory, as well as manage equipment and personnel within a distribution center.
Silicom Ltd (NASDAQ: SILC)
Silicom Ltd. designs, manufactures, markets, and supports Multi-Port Gigabit-Ethernet Server Adapters. The company sells its Multi-Port Gigabit-Ethernet Server Networking Adapters (including its Bypass Adapters) mainly to original equipment manufacturers, or OEMs.
CommVault Systems Inc (NASDAQ: CVLT)
CommVault Systems, Inc. provides data management software applications and related services. The company develops, markets, and sells a suite of data management software applications designed to protect and manage data throughout its lifecycle.
Electronics For Imaging Inc (NASDAQ: EFII)
Electronics for Imaging Inc., designs and markets products that support color and black & white printing on a variety of peripheral devices. The company’s Fiery products incorporate hardware and software technologies that transform digital copiers and printers from copier manufacturers into networked printers. Products are sold in North America, Europe, and Japan.
Pegasystems Inc (NASDAQ: PEGA)
Pegasystems Inc. develops customer relationship management software. The software automates customer interactions across transaction-intensive enterprises.The company provides its products to customers in the banking, mutual funds and securities, mortgage services, card services, insurance, healthcare management, and telecommunications industries.
Sapient Corp (NASDAQ: SAPE)
Sapient Corporation provides integrated management consulting services, Internet commerce solutions, and systems implementation services.The company’s services include design and development of Internet commerce solutions, implementation and integration of packaged software solutions, design and development of custom software solutions, and production support.
Virtusa Corp (NASDAQ: VRTU)
Virtusa Corporation is a global information technology services company. The company’s services include a broad range of information technology services, including IT consulting, technology implementation and application outsourcing.
Netscout Systems Inc (NASDAQ: NTCT)
NetScout Systems, Inc. designs, develops, manufactures, markets, and supports a family of products that enable businesses and service providers to manage the performance of computer networks and business software applications. The company’s Application Flow Management solution consists of data collection devices and analysis and presentation software.
Monolithic Power Systems Inc (NASDAQ: MPWR)
Monolithic Power Systems is a high performance analog and mixed-signal semiconductor company. The company designs, develops, and markets proprietary, advanced analog and mixed-signal semiconductors for large and high growth markets.
RealPage Inc (NASDAQ: RP)
RealPage, Inc. provides products and services to the multifamily real estate industry. The company’s services include applicant screening, accounting, budgeting, property management, and compliance reporting. RealPage also develops and delivers proprietary Web-based applications that enhance client information management capabilities.
The Descartes Systems Group Inc (TSX: DSG)
The Descartes Systems Group Inc. provides inter-enterprise software for the execution of supply-chain management, especially for delivery-intensive companies. The company’s products allow users to share and process information via the Internet. Descartes licenses software to customers worldwide.
