Seeking Alpha
Value, growth, long-term horizon, medium-term horizon
Profile| Send Message|
( followers)  

Looking for highly profitable companies but don’t know where to start? Here are some ideas to get you started.

We ran a screen on the tech sector for stocks rallying above their 20-day, 50-day, and 200-day moving averages, indicating very strong bullish sentiment and upward momentum.

We screened these stocks for those seeing consistent increases in diluted normalized EPS over the last four years. (We also made sure that all companies had positive earnings for all four years.)

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these companies will continue to see increasing earnings? Use this list as a starting point for your own analysis.

List sorted by market cap.

1. Google Inc. (NASDAQ:GOOG): The world's most popular search engine. Market cap of $201.40B. The stock is currently trading at 2.57% above its 20-Day SMA, 4.59% above its 50-Day SMA, and 11.81% above its 200-Day SMA. Diluted normalized EPS increased from 13.29 to 13.31 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, diluted normalized EPS increased from 15.8 to 20.41 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the last time interval, the EPS increased from 20.41 to 26.31 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock has gained 4.5% over the last year.

2. Rackspace Hosting, Inc. (NYSE:RAX): Operates in the hosting and cloud computing industry. Market cap of $5.80B. The stock is currently trading at 4.33% above its 20-Day SMA, 7.48% above its 50-Day SMA, and 10.57% above its 200-Day SMA. Diluted normalized EPS increased from 0.17 to 0.19 during the first time interval (12 months ending 2008-12-31 vs. 12 months ending 2007-12-31). For the second time interval, diluted normalized EPS increased from 0.19 to 0.24 (12 months ending 2009-12-31 vs. 12 months ending 2008-12-31). And for the last time interval, the EPS increased from 0.24 to 0.35 (12 months ending 2010-12-31 vs. 12 months ending 2009-12-31). The stock is a short squeeze candidate, with a short float at 9% (equivalent to 5.97 days of average volume). The stock has gained 42.7% over the last year.

3. Jack Henry & Associates Inc. (NASDAQ:JKHY): Provides integrated computer systems and services for in-house and outsourced data processing to commercial banks, credit unions, and other financial institutions primarily in the United States. Market cap of $2.85B. The stock is currently trading at 1.35% above its 20-Day SMA, 2.44% above its 50-Day SMA, and 7.66% above its 200-Day SMA. Diluted normalized EPS increased from 1.17 to 1.22 during the first time interval (12 months ending 2009-06-30 vs. 12 months ending 2008-06-30). For the second time interval, diluted normalized EPS increased from 1.22 to 1.38 (12 months ending 2010-06-30 vs. 12 months ending 2009-06-30). And for the last time interval, the EPS increased from 1.38 to 1.59 (12 months ending 2011-06-30 vs. 12 months ending 2010-06-30). The stock has gained 13.34% over the last year.

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Source: 3 Rallying Tech Stocks With Consistently Rising EPS