Many people have a love-hate relationship with technology. It flips back and forth depending upon the quality of the product, usefulness, fun factor and so much more. Yet, it seems that there is always an eagerness to try something new. With this in mind, we searched for tech stocks that offer interesting investment potential. An indicator that a company can stay current with the times, has confidence in their management, products and services, and has growth on the horizon is a strong EPS rate. Today we searched for tech stocks with EPS growth rates of 25% and higher for the next five years. Additionally, all of these stocks have received a recent 'Strong Buy' rating from industry analysts. Take a look to see if any of these stocks capture your interest.
EPS growth (earnings per share growth) illustrates the growth of earnings per share over time. The five-year expected EPS growth rate is a long term annual growth estimate, where the growth projections are made by analysts, the company or other credible sources.
We first looked for technology stocks. Next, we screened for businesses with estimated high-growth, with five-year projected EPS growth above 25%. We then screened for businesses that analysts rate as "Strong Buy" (mean recommendation < 2). We did not screen out any market caps.
Do you think these stocks have a strong outlook? Use our list along with your own analysis.
1) Neonode, Inc. (NEON)
|5-Year Projected Earnings Per Share Growth Rate||40.00%|
Neonode Inc. provides optical infrared touch screen solutions for handheld and small to midsized consumer and industrial electronic devices in Sweden and internationally. The company's touch screen solutions are based on its patented zForce, an optical infrared touch screen technology that supports one-handed navigation, allowing the user to operate the functionality with finger gestures passing over the screen; and Neno, a software-based user interface. It licenses its touch screen technology to original equipment manufacturers and original design manufacturers to imbed into electronic devices, such as mobile phones, e-Readers, household appliances, printers and other office equipment, GPS devices, automobile consoles, games and toys, and tablet personal computers. Neonode Inc. is headquartered in Stockholm, Sweden.
2) OSI Systems, Inc. (OSIS)
|Industry||Semiconductor Equipment & Materials|
|5-Year Projected Earnings Per Share Growth Rate||37.00%|
OSI Systems, Inc., together with its subsidiaries, designs and manufactures electronic systems and components for homeland security, healthcare, defense, and aerospace markets worldwide. The company operates in three divisions: Security, Healthcare, and Optoelectronics and Manufacturing. The Security division provides security and inspection systems under the Rapiscan Systems name. Its products include baggage and parcel inspection, cargo and vehicle inspection, hold baggage screening, and people screening products to search for weapons, explosives, drugs, and other contraband, as well as for the verification of cargo manifests for monitoring the export and import of controlled materials. This division also offers various turnkey security screening solutions under the S2 trade name.
The Healthcare division provides patient monitoring, diagnostic cardiology, and anesthesia delivery and ventilation systems under the Spacelabs name that are used in critical care, emergency, and perioperative areas within hospitals, as well as physician's offices, medical clinics, and ambulatory surgery centers. The Optoelectronics and Manufacturing division offers optoelectronic devices for the aerospace and defense, avionics, medical imaging and diagnostic, renewable energy, biochemistry analysis, pharmaceutical, nanotechnology, telecommunications, construction, and homeland security markets under the OSI Optoelectronics name; and electronics manufacturing services to original equipment manufacturers under the OSI Electronics name. This division also provides laser-based remote sensing devices to detect and classify vehicles in toll and traffic management systems under the OSI Laserscan name; blood pressure cuffs and unifusors under the Statcorp Medical name; and solid-state laser products for aerospace, defense, telecommunication, and medical applications under the OSI LaserDiode trade name. The company was founded in 1987 and is headquartered in Hawthorne, California.
3) Velti Plc (VELT)
|Industry||Business Software & Services|
|5-Year Projected Earnings Per Share Growth Rate||34.00%|
Velti plc engages in the provision of mobile marketing and advertising technology and solutions for brands, advertising agencies, mobile operators, and media companies in Europe, the Americas, Asia, and Africa. Its Velti mGage platform allows its customers to use mobile and traditional media, such as television, print, radio, and outdoor advertising to plan, execute, monitor, and measure mobile marketing and advertising campaigns that reach consumers through mobile Internet applications.
The company's products include Velti mGage Visualize that offers the ability to track the performance of mobile, traditional, and Internet-based media campaigns; Velti mGage Reach, which manages advertising inventories and media buys for advertisers and publishers; Velti mGage Create that enables the design and development of mobile Websites, mobile portals, rich media creation, landing pages, and micro-sites through a drag and drop graphical user interface; and Velti mGage Interact, which provides customer relationship management functionality to enable brands and advertising agencies to build engagement with its customers. It also offers Velti Play that enables brands, broadcasters, and mobile operators to extend tried and tested mass-participation concepts to social media and mobile apps; and Velti mGage Measure, which offers end-to-end tracking and reporting of consumer behavior and engagement in media platforms, including traditional, online, and mobile. The company was founded in 2000 and is headquartered in Dublin, the Republic of Ireland.
*Company profiles were sourced from Google Finance and Yahoo Finance. Financial data was sourced from Finviz on August 24, 2012.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.