Despite widespread fears of a recession, the long-term outlook for the tech industry looks promising. Therefore, the fundamentally strong technology stocks of Motorola (MSI), Ribbon (RBBN) and AudioCodes (AUDC) might be worth buying. Keep reading.
Game-changing technologies such as chatGPT are reaching a tipping point for mainstream adoption. The technology industry is well positioned to reap long-term benefits through continuous development and the growing need for digital transformation across industries.
As the industry shows solid potential, the fundamentally strong technology stocks of Motorola Solutions, Inc. (MSI), Ribbon Communications Inc. (RBBN) and AudioKodes Ltd. (AUDC) can be solid purchases.
The introduction of blockchain technology has changed the rules of the game, changing the way we approach data storage and transactions. Moreover, the development of standard tools such as ChatGPT makes it easy for developers of all levels to work with blockchain technology..
Gartner predicts spending will be reached $4.5 trillion in 2023, or 2.4% rise compared to previous years.
John-David Lovelock, Distinguished Vice President and Analyst at Gartner, said, “Consumers and businesses face very different economic realities. While inflation is eroding consumer markets, fueling layoffs at B2C companies, businesses continue to increase spending on digital business initiatives despite the global economic slowdown.”
Let’s discuss in detail the stocks mentioned above:
Motorola Solutions Inc. (MSI)
MSI provides public and corporate security solutions in the US, UK, Canada and other countries. The company operates in two segments: Products and System Integration; and Software and Services.
On May 2, 2023, MSI launched the next-generation V700 body camera with mobile broadband capabilities to provide public security agencies with another important source of real-time field data and collaboration. The V700 seamlessly integrates with Aware, a cloud platform that provides a shared operational view, as well as the M500 in-car video system, APX radios and Holster Aware sensors.
This ecosystem of connected technologies offers the location of a commanding officer and multiple perspectives on an incident as it develops to improve the response and safety of officers.
His last 12 month EBITDA margin 28.05%, up 201.5% from the industry average of 9.30%. The last 12-month net profit margin of 14.63% is 461.1% higher than the industry average of 2.61%.
MSI pays an annual dividend of $3.52 per share, which equates to a 1.24% return at current price. Dividend payouts have grown by an average of 11.3% over the past three years. The company’s average dividend yield over four years is 1.39%.
During the first fiscal quarter ending March 31, 2023, MSI’s net revenue increased by 14.7% year-over-year to $2.17 billion. Net income attributable to MSI rose 4.1% year on year to $278 million, while earnings per common share increased 4.5% year on year to $1.61.
MSI’s earnings per share are expected to rise 21.6% year on year to $2.52 in the second fiscal quarter ending June 2023. The company’s revenue for the same quarter is expected to increase 10.3% year on year to $2.36 billion. It has also beaten the consensus estimates for revenue and earnings per share in each of the past four quarters, which is impressive.
MSI shares have risen 41.8% over the past year and closed the last trading session at $286.57.
MSI Power Ratings reflect its promising prospects. The stock has an overall rating of B, which means “buy” in our proprietary rating system. PoWR ratings are calculated based on 118 different factors, each of which is optimally weighted.
The stock is rated B for sentiment, growth and quality. It ranks 9th out of 51 stocks in the ranking. Technology – Communication/Network industry.
In addition to the above, we also rated MSI for value, stability, and momentum. Get all MSI ratings Here.
Tape Communications Inc. (RBBN)
RBBN provides communications technology in the US, Europe, the Middle East, Africa, Asia Pacific and overseas. It operates in two segments: Cloud and Edge; and IP optical networks.
On April 25, RBBN announced that Valley Telecommunications, a South Dakota-based telephone, internet and television service provider, has selected Ribbon to upgrade its network and provide a tenfold increase in bandwidth to local residents and businesses.
On April 24, RBBN announced that kölbi Negocios, Costa Rica-based Grupo ICE, which provides advanced power and telecommunications solutions, has deployed Ribbon Connect for Microsoft Teams Direct Routing.
The last 12-month gross margin of 52.23% is 5.7% higher than the industry average of 49.43%. Its 12-month asset turnover ratio of 0.68x is 9.9% higher than the industry average of 0.62x.
RBBN revenue rose 7.5% year-over-year to $186 million in the second fiscal quarter ended March 31, 2023. The non-GAAP net loss was down 25% year-over-year to down 75% year-on-year to $0.02.
Street expects RBBN’s fiscal second quarter ending June 2023 revenue to increase 2.7% year-over-year to $211.41 million. The company’s earnings per share for the same quarter is expected to be $0.04. It has also outperformed consensus EPS estimates in three of the last four quarters.
Shares are up 2% over the past six months to close the last trading session at $2.59.
RBBN’s robust outlook is reflected in its POWR ratings. The shares have an overall rating of B, which equates to a buy in our own rating system.
RBBN is rated A for height, value and mood. It ranks 10th in the same industry.
Click here to see additional POWR ratings for RBBN (momentum, stability and quality).
OOO AudioKodes (AUDC)
Headquartered in Lod, Israel, AUDC offers cutting-edge communications software, productivity products and solutions for the digital workplace. The company offers solutions, products and services for unified communications, contact centers, the VoiceAI business line and service providers.
AUDC’s 12-month gross margin of 64.99% is 31.4% higher than the industry average of 49.47%. The last 12-month asset turnover of 0.82x is 10% higher than the industry average of 0.62x.
AUDC pays out $0.36 in dividends annually, which equates to a 3.66% return at current price. Its 4-year average dividend yield is 1.29%. Its dividend has grown by an average of 12.9% over the past three years.
AUDC’s services revenue increased 10.8% to $30.52 million in the first quarter ended March 31, 2022. In addition, its gross profit was $36.54 million. Its non-GAAP EPS was $0.08.
AUDC is expected to generate $60.36 million in revenue for the second fiscal quarter ending June 2023. The company’s earnings per share for the same quarter is expected to be $0.10.
AUDC fell 1.6% intraday and closed the last trading session at $9.83.
The AUDC POWR ratings reflect his strong outlook. The stock has an overall rating of B, which means “buy” in our proprietary rating system.
AUDC is also rated “A” for quality and “B” for value. It ranks 6th in the same industry.
For additional AUDC Growth, Momentum, Stability, and Sentiment ratings, see Click here.
The bear market is not over yet…
That’s why you need to discover this timely presentation with a trading plan and top recommendations from 40-year investment veteran Steve Reitmeister:
REVISION: 2023 Stock Market Forecast >
MSI shares were unchanged in premarket trading on Wednesday. Since the beginning of the year, the MSI has gained 11.57% compared to the 7.86% gain in the benchmark S&P 500 over the same period.
About the author: Nidhi Agarwal
Nidhi is passionate about capital markets and asset management, which led her to a career as an investment analyst. She has a bachelor’s degree in finance and marketing and is pursuing a CFA program. Her fundamental approach to stock analysis helps investors identify the best investment opportunities.
Fast 3 Technology Stocks Investors Buy appeared first on stocknews.com