Barron's had several positive pieces on different tech stocks in this weekend's version of the widely followed industry publication. These articles highlighted several attractive stocks in various parts of the technology space. Quite often these profiled equities get a "Barron's Bounce" on Monday and several are in my own portfolio as well.
First up in this week's magazine is a longtime favorite of both Barron's and my own portfolio, Apple (NASDAQ:AAPL). The stock has been a strong performer so far in 2014, but the magazine still sees more upside for this tech giant. The piece cites a consumer survey showing even stronger demand for the upcoming iPhone 6 with larger screens than the hugely successful iPhone 5.
Barron's also points out several attractive features to the shares I have been highlighting for more than a year. The shares sell for less than the overall market multiple even without considering the company is sitting on ~$164B in net cash & marketable securities (~28% of market capitalization). Earnings should grow in the low teens this year as well as next. The shares also yield just over two percent (2.1%).
Next up is a tech stock currently going in a different direction, Juniper Networks (NYSE:JNPR). Barron's postulates in an article this weekend that some orders have been delayed this year due to the consolidation currently going on within the cable space but revenue growth should pick up in 2015.
More importantly, the article highlights thanks to cost cuts, stock buybacks and some organic growth that earnings should increase ~17% this year and ~24% in 2015. The shares go for just over 12 times next year's projected earnings, have a five year projected PEG of just over 1 (1.18) and the company has over $1 billion in net cash (over 10% of market capitalization) on its balance sheet.
Also mention in the same page of the Apple article is sensor maker OmniVision Technologies (NASDAQ:OVTI) which also receives a positive mention in Barrron's this week. The article points out the company just received a buyout offer from a Chinese investment firm at $29 a share. Barron's states this puts a floor under the stock and cites an analyst that postulates a likely deal will probably take place at ~$32 a share.
Even without a buyout, there is value in these shares. The company has more than $400 million in net cash representing some 30% of its current market capitalization. OmniVision also has crushed expectations each of its last four quarters and the stock is selling at under nine times trailing earnings once net cash is accounted for.
My regular readers know that I am not sanguine about the market at current levels. However, technology still looks like it is reasonably valued with some exceptions and I am overweight the sector currently. The selections with cash rich balance sheets above represent good value in an overvalued market.
Disclosure: The author is long AAPL, JNPR. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.