Tech Trio for a New Economy
03/20/2014 7:00 am EST
In his Coolcat Technology Plus Report, momentum investor Kevin Kennedy features a New Economy Leaders portfolio, focused on the market's strongest and most innovative companies. Here's a trio of stocks that earns a spot in that portfolio.
F5 Networks (FFIV) develops application delivery networking products that optimize the security, performance, and availability of network applications, servers, and storage systems.
The stock broke out of an 11-month base at about $108 on strong volume in January, then consolidated its gains a bit before notching its fourth straight monthly gain in February.
CEO John McAdam said strong demand for products introduced in 2013 has led to added business momentum that included hiring new employees. Analysts expect earnings to surge 71% in the next year to $6 per share, which would give the stock a forward PE of 19.
Broadcom (BRCM) is in recovery mode after tanking 29% last summer and setting fresh 52-week lows after the company reported a second-quarter loss, breaking a streak of 16 consecutive earnings gains.
Since then, the company has reported two moneymaking quarters and the stock has risen for six straight months, although it remains 20% off its high. Its 50-day moving average just crossed above the 200-day moving average for the first time since July, pointing to better times ahead.
eBay (EBAY) just broke out of a 10-month base after trading in a tight $10 range all of last year; this breakout probably bodes well for higher prices.
Activist investor Carl Icahn has been blasting the company's board and trying to pressure them to spin-off online payment processor PayPal.
The company has a current streak of 25 straight profitable quarters, and earnings are expected to jump 56% next year, giving the stock a forward PE of 17.
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