7 Best Performing Large Cap Tech Stocks

by: Rash Menaria

Following is a list of what I consider the seven best performing large cap technology stocks based on year to date returns.




YTD Returns


ARM Holdings plc

Semiconductor - Specialized



Baidu, Inc.

Internet Information Providers



Cerner Corporation

Healthcare Information Services



China Telecom Corp. Ltd.

Telecom Services



Chunghwa Telecom Co. Ltd.

Telecom Services



China Unicom (Hong Kong) Limited

Wireless Communications



Motorola Mobility Holdings, Inc.

Diversified Communication Services


One stock likely to continue its outperformance going forward is Baidu Inc. Baidu is the market leader in the Chinese Internet search market with an 80% market share. The business has high barriers to entry and even Google (NASDAQ:GOOG) wasn’t able to meaningfully challenge Baidu’s dominance in the past. Going forward, I believe Baidu can continue to post 50% plus growth for next several years. China’s total online advertising spend to GDP ratio is still five to eight years behind the US.

There is a secular tailwind for leading search companies as the normalization occurs and Baidu will be the likely beneficiary. According to consensus estimates, Baidu is expected to post EPS of $2.91 in the current year and $4.39 in the next year. It is trading at 33x forward P/E which is reasonable given its 50% growth rate.

ARM Holdings plc designs microprocessors, physical intellectual property and related technology and software, and sells development tools. The company operates in three business divisions: Processors, physical IP and system design. Out of nine analysts covering the company, three have buy ratings, four have hold ratings and two have sell ratings.

Cerner Corporation is a supplier of healthcare information technology solutions, healthcare devices and related services. Cerner solutions optimize processes for healthcare organizations. These solutions are licensed by approximately 9,000 facilities globally, including more than 2,600 hospitals; 3,500 physician practices covering more than 30,000 physicians; 500 ambulatory facilities, such as laboratories, ambulatory centers, cardiac facilities, radiology clinics and surgery centers; 800 home health facilities, and 1,600 retail pharmacies. Out of 23 analysts covering the company, 13 have buy ratings, eight have hold ratings and two have sell ratings.

China Telecom Corporation Limited is an integrated information service provider in the People’s Republic of China with full-service capabilities. The company offers a range of telecommunications services, including wireline voice services, mobile voice services, internet access services, value-added services, integrated information application services, managed data and leased line services and other related services. Out of three analysts covering the company, two have buy ratings and one has a hold rating.

Chunghwa Telecom Co., Ltd. is a telecommunications service provider in Taiwan. The company has five segments: Domestic fixed communications business, mobile communications business, Internet business, international fixed communications business and others. One analyst who covers the company has a buy rating.

China Unicom Limited is an integrated telecommunications operator in China providing mobile voice and value-added, fixed-line voice and fixed-line broadband, data communications and other telecommunications services to its customers. It operates in two business segments, mobile services and fixed-line services. Out of three analysts covering the company, one has a buy ratings and two have hold ratings.

Motorola Mobility Holdings, Inc. is a provider of technologies, products and services that enable a range of mobile and wireline digital communication, information and entertainment experiences. Google recently announced an acquisition of Motorola Mobility.

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