The Best Yielding Technology Stocks with Biggest Earnings Forecasts

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Feb 06, 2012
Growth is a wonderful instrument for wealth building. I screened the technology sector by stocks with the highest earnings per share growth for the upcoming five years (at least 20 percent yearly). In addition, the company should pay today more than three percent in cash dividends. Nine stocks fulfilled my criteria of which five are high yields. Five stocks have a buy or better recommendation.


Here are my favorite stocks:



1. Seagate Technology (STX, Financial)
has a market capitalization of $11.85 billion. The company employs 52,700 people, generates revenues of $10,971.00 million and has a net income of $511.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,556.00 million. Because of these figures, the EBITDA margin is 14.18 percent (operating margin 7.35 percent and the net profit margin finally 4.66 percent).


The total debt representing 38.07 percent of the company’s assets and the total debt in relation to the equity amounts to 142.59 percent. Due to the financial situation, a return on equity of 19.70 percent was realized. Twelve trailing months earnings per share reached a value of $2.08. Last fiscal year, the company paid $0.18 in form of dividends to shareholders. Earnings are expected to grow 20.63 percent for the next five years.


Here are the price ratios of the company: The P/E ratio is 12.70, Price/Sales 1.08 and Price/Book ratio 4.55. Dividend Yield: 3.79 percent. The beta ratio is 2.25.


2. STMicroelectronics (STM, Financial) has a market capitalization of $6.20 billion. The company employs 53,300 people, generates revenues of $9,735.00 million and has a net income of $155.00 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,643.00 million. Because of these figures, the EBITDA margin is 16.88 percent (operating margin 3.74 percent and the net profit margin finally 1.59 percent).


The total debt representing 12.95 percent of the company’s assets and the total debt in relation to the equity amounts to 20.60 percent. Due to the financial situation, a return on equity of 8.56 percent was realized. Twelve trailing months earnings per share reached a value of $0.72. Last fiscal year, the company paid $0.40 in form of dividends to shareholders. Earnings are expected to grow 21.10 percent for the next five years.


Here are the price ratios of the company: The P/E ratio is 9.68, Price/Sales 0.65 and Price/Book ratio 0.82. Dividend Yield: 5.71 percent. The beta ratio is 1.75.


3. Siemens (SI, Financial) has a market capitalization of $87.53 billion. The company employs 363,000 people, generates revenues of $96,620.93 million and has a net income of $9,214.57 million. The firm’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $13,964.46 million. Because of these figures, the EBITDA margin is 14.45 percent (operating margin 10.97 percent and the net profit margin finally 9.54 percent).


The total debt representing 17.21 percent of the company’s assets and the total debt in relation to the equity amounts to 56.90 percent. Due to the financial situation, a return on equity of 22.83 percent was realized. Twelve trailing months earnings per share reached a value of $9.48. Last fiscal year, the company paid $3.94 in form of dividends to shareholders. Earnings are expected to grow 21.23 percent for the next five years.


Here are the price ratios of the company: The P/E ratio is 10.54, Price/Sales 0.94 and Price/Book ratio 2.11. Dividend Yield: 3.90 percent. The beta ratio is 1.60.


Take a closer look at the full table of technology stocks with highest expected earnings growth. The average price to earnings ratio (P/E ratio) amounts to 17.37 and forward P/E ratio is 11.06. The dividend yield has a value of 3.85 percent. Price to book ratio is 1.73 and price to sales ratio 0.82. The operating margin amounts to 10.12 percent.


Related stock ticker symbols:

SFUN, CTEL, STM, TST, PT, SI, STX, CMTL, KBALB


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