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

Interested in tech stocks that are showing strong upside momentum?

To help you explore this topic, we started with a universe of about 180 tech stocks. To refine the list, we only focused on names that are currently in rally mode--trading above the 20-day, 50-day and 200-day simple moving averages.

To further refine the list, we collected data on quarterly operating expenses, and identified those rallying tech stocks that have significant cash holdings relative to operating expenses.

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.

Will the solid cash positions of these companies lower their risk going forward? Use this list as a starting point for your own analysis.

List sorted by distance from the 20-day simple moving average.

1. VirnetX Holding Corp (NYSEMKT:VHC): Engages in developing and commercializing software and technology solutions for securing real-time communications over the Internet. Market cap of $1.26B. The stock is currently trading at 17.03% above its 20-day SMA, 23.81% above its 50-day SMA, and 9.99% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $3.34M, vs. most recent cash and short term investments at $65.23M, implies a Cash / Avg. Operating Expense ratio at 19.55. This is a risky stock that is significantly more volatile than the overall market (beta = 2.25). The stock is a short squeeze candidate, with a short float at 32.83% (equivalent to 11.68 days of average volume). The stock has had a couple of great days, gaining 19.12% over the last week.

2. VeriSign, Inc. (NASDAQ:VRSN): Provides Internet infrastructure services to various networks worldwide. Market cap of $5.72B. The stock is currently trading at 7.13% above its 20-day SMA, 10.60% above its 50-day SMA, and 10.47% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $110.47M, vs. most recent cash and short term investments at $1234.92M, implies a Cash / Avg. Operating Expense ratio at 11.18. The stock is a short squeeze candidate, with a short float at 7.07% (equivalent to 5.8 days of average volume).

3. Microchip Technology Inc. (NASDAQ:MCHP): Develops and manufactures semiconductor products for various embedded control applications worldwide. Market cap of $6.94B. The stock is currently trading at 5.88% above its 20-day SMA, 4.85% above its 50-day SMA, and 4.11% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $253.15M, vs. most recent cash and short term investments at $1415.44M, implies a Cash / Avg. Operating Expense ratio at 5.59. The stock is a short squeeze candidate, with a short float at 10.97% (equivalent to 8.38 days of average volume).

4. Exar Corp. (NYSE:EXAR): A fabless semiconductor company, together with its subsidiaries, engages in the design, contract manufacture, and sale of silicon, software, and subsystem solutions for industrial, telecom, networking, and storage applications. Market cap of $304.71M. The stock is currently trading at 5.66% above its 20-day SMA, 10.97% above its 50-day SMA, and 10.46% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $42.92M, vs. most recent cash and short term investments at $203.09M, implies a Cash / Avg. Operating Expense ratio at 4.73.

5. Cornerstone OnDemand, Inc. (NASDAQ:CSOD): Provides learning and talent management solution delivered as software-as-a-service. Market cap of $881.67M. The stock is currently trading at 5.05% above its 20-day SMA, 15.0% above its 50-day SMA, and 8.12% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $18.52M, vs. most recent cash and short term investments at $81.4M, implies a Cash / Avg. Operating Expense ratio at 4.4.

6. CEVA Inc. (NASDAQ:CEVA): The company and its subsidiaries engage in designing and licensing silicon intellectual property (SIP) for the handsets, portable multimedia, and consumer electronics markets. Market cap of $684.25M. The stock is currently trading at 4.96% above its 20-day SMA, 1.66% above its 50-day SMA, and 3.08% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $9.66M, vs. most recent cash and short term investments at $137.23M, implies a Cash / Avg. Operating Expense ratio at 14.21. The stock is a short squeeze candidate, with a short float at 15.43% (equivalent to 15.16 days of average volume). The stock has had a couple of great days, gaining 7.03% over the last week.

7. Analog Devices Inc. (NASDAQ:ADI): Engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer, and consumer applications. Market cap of $10.71B. The stock is currently trading at 4.65% above its 20-day SMA, 2.45% above its 50-day SMA, and 0.45% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $481.11M, vs. most recent cash and short term investments at $3592.46M, implies a Cash / Avg. Operating Expense ratio at 7.47. The stock has had a couple of great days, gaining 5.55% over the last week.

8. KLA-Tencor Corporation (NASDAQ:KLAC): Engages in the design, manufacture, and marketing of process control and yield management solutions for the semiconductor and related nanoelectronics industries. Market cap of $8.02B. The stock is currently trading at 3.73% above its 20-day SMA, 5.21% above its 50-day SMA, and 15.68% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $511.41M, vs. most recent cash and short term investments at $2100.15M, implies a Cash / Avg. Operating Expense ratio at 4.11. The stock has had a good month, gaining 11.15%.

9. Boingo Wireless, Inc. (NASDAQ:WIFI): Provides mobile Wi-Fi Internet solutions. Market cap of $291.74M. The stock is currently trading at 3.55% above its 20-day SMA, 7.76% above its 50-day SMA, and 1.64% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $19.93M, vs. most recent cash and short term investments at $87.23M, implies a Cash / Avg. Operating Expense ratio at 4.38.

10. Tessera Technologies Inc. (NASDAQ:TSRA): Develops and licenses miniaturization technologies for chip-scale, multichip, and wafer-level packaging, which enables companies to produce chips for digital audio players, digital cameras, personal computers, personal digital assistants, video game consoles, and mobile phones. Market cap of $863.64M. The stock is currently trading at 2.42% above its 20-day SMA, 9.74% above its 50-day SMA, and 6.22% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $63.45M, vs. most recent cash and short term investments at $535.59M, implies a Cash / Avg. Operating Expense ratio at 8.44. The stock has had a couple of great days, gaining 5.81% over the last week.

11. NeuStar, Inc. (NYSE:NSR): Provides technology and directory services to its communications service provider (carrier) and non-carrier, commercial business customers primarily in North America, Europe, and the Middle East. Market cap of $2.47B. The stock is currently trading at 1.55% above its 20-day SMA, 4.45% above its 50-day SMA, and 24.35% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $87.5M, vs. most recent cash and short term investments at $391.82M, implies a Cash / Avg. Operating Expense ratio at 4.48. The stock has gained 29.14% over the last year.

12. Xilinx Inc. (NASDAQ:XLNX): Designs, develops, and markets programmable platforms in North America, the Asia Pacific, Europe, and Japan. Market cap of $8.47B. The stock is currently trading at 1.24% above its 20-day SMA, 1.77% above its 50-day SMA, and 1.10% above its 200-day SMA. Average quarterly operating expense over the last five quarters at $404.15M, vs. most recent cash and short term investments at $1807.55M, implies a Cash / Avg. Operating Expense ratio at 4.47. The stock has gained 14.5% over the last year.

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

Source: 12 Rallying Tech Stocks With Strong Upside Momentum