8 Tech Stocks With the Most Conservative Accounting Practices

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Includes: AVGO, CTL, CTSH, FLEX, NIHD, NTAP, VMW, WDC, XLK
by: Kapitall

The following is a list of tech stocks with the most conservative accounting practices, according to the ratings developed by forensic accounting firm Audit Integrity.

Audit Integrity was founded in 2002 to develop risk management tools based on a statistical analysis of corporate integrity. The Accounting and Governance Risk (NYSE:AGR) rating is a forensic measure of the transparency and reliability of a corporation’s financial reporting and governance practices. The closer the score is to 100, the more conservative the company's accounting practices, according to Audit Integrity.

All the tech names mentioned below have high AGR scores above 70, i.e. more conservative and transparent accounting practices than other tech stocks.

Short float values sourced from Finviz, AGR ratings sourced from Audit Integrity.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research. Note: The numbers on top of items represent the forward P/E ratio, if available.

The list has been sorted by the AGR score.

1. NetApp, Inc. (NASDAQ:NTAP): Data Storage Devices Industry. Market cap of $21.32B. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 88. Short float at 4.83%, which implies a short ratio of 3.18 days. The stock has gained 77.15% over the last year.

2. Avago Technologies Limited (NASDAQ:AVGO): Semiconductor Industry. Market cap of $6.7B. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 87. Short float at 7.58%, which implies a short ratio of 5.59 days. The stock has gained 56.25% over the last year.

3. Qwest Communications International Inc. (NYSE:Q): Telecom Services Industry. Market cap of $12.6B. According to Audit Integrity, the company has Conservative accounting practices, with an AGR score of 87. Short float at 1%, which implies a short ratio of 0.72 days. The stock has gained 70.12% over the last year.

4. Flextronics International Ltd. (NASDAQ:FLEX): Printed Circuit Boards Industry. Market cap of $6.45B. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 79. Short float at 1.71%, which implies a short ratio of 2.33 days. The stock has gained 15.98% over the last year.

5. Cognizant Technology Solutions Corp. (NASDAQ:CTSH): Business Software & Services Industry. Market cap of $22.92B. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 78. Short float at 1.77%, which implies a short ratio of 2.2 days. The stock has gained 57.58% over the last year.

6. VMware, Inc. (NYSE:VMW): Technical & System Software Industry. Market cap of $40.11B. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 76. Short float at 6.35%, which implies a short ratio of 2.18 days. The stock has gained 107.3% over the last year.

7. SanDisk Corp. (SNDK): Semiconductor Industry. Market cap of $12.44B. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 74. Short float at 4.96%, which implies a short ratio of 1.35 days. The stock has gained 76.57% over the last year.

8. NII Holdings Inc. (NASDAQ:NIHD): Wireless Communications Industry. Market cap of $7.17B. According to Audit Integrity, the company has Average accounting and governance risk, with an AGR score of 71. Short float at 1.87%, which implies a short ratio of 1.78 days. The stock has gained 15.73% over the last year.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.