3 Tech Stocks That CLOBBERED Wall Street This Quarter

Advertisement

After Apple Inc. (AAPL) and eBay Inc (EBAY) both fell short of analysts’ estimates last quarter, investors were understandably starting to fear the worst when it came to consumer-oriented tech stocks.

3 Tech Stocks That CLOBBERED Wall Street This Quarter

So when Alphabet Inc (GOOG, GOOGL) reported very strong numbers on Tuesday morning, the results did more than just bolster GOOGL stock. The numbers re-bolstered waning confidence in tech stocks as a group.

Did you know, however, the best fourth-quarter results from the technology sector have largely been overlooked by investors who have been highly focused on Google, Apple and, of course, Facebook Inc (FB)?

It’s true.

Nevertheless, these tech earnings are worth highlighting in the wake of Alphabet’s results.

Alphabet Q4 Earnings

Alphabet Q4 EarningsOn the off chance anyone has yet to hear, Alphabet earned $8.67 per share on $21.33 billion in revenue last quarter. The numbers handily topped consensus estimates of $20.77 billion in sales and a profit of $8.10 per share of GOOGL stock. The top line was also 18% better than the year-ago top line, and operating earnings were up a whopping 28% on a year-over-year basis.

Other metrics were solid too. Namely, paid clicks grew 31% from Q4-2014’s levels, accelerating the growth rate of paid clicks seen in Q3 (which had accelerated from Q2’s paid click growth rate).

Revenue from paid clicks at Google sites also grew, to the tune of 40%. That’s up from a growth pace of 35% in the previous quarter, and a growth rate of 30% in the quarter before that.

In other words, Alphabet has found a winning formula despite doubts it would be able to do so in a meaningful way anytime in the foreseeable future.

As they say though, what’s good for the goose is good for the gander. If Alphabet has proven consumer interest in tech-driven and e-commerce-driven products and services is still in demand, might it stand to reason other tech stocks are finding similar success?

The answer is yes, and three names come to mind as possibly buy-worthy candidates following solid Q4 earnings beats … even if traders have mostly ignored them.

Other Tech Stocks to Love: Seagate Technology PLC (STX)

3 Other Tech Stocks to Love: Seagate Technology PLC (STX)There’s no denying computer drive makers have become victims of their own overproduction, with that pain fueled by waning demand.

Seagate Technology PLC (STX) has been no exception, with STX stock falling more than 60% from late 2014 to late January of this year. As it turns out, however, the sellers may have overshot.

On Friday of last week, Seagate Technology reported earnings of 82 cents per share on $3 billion in revenue for its second fiscal quarter of last year … Q4 for most everyone else.

Both were lower than year-ago comps, but both were better than the anticipated profit of 71 cents per share of STX stock and top line of $2.94 billion. The turnaround chatter for STX doesn’t seem so far-fetched now.

Other Tech Stocks to Love: Mellanox Technologies, Ltd. (MLNX)

3 Other Tech Stocks to Love: Mellanox Technologies, Ltd. (MLNX)

Mellanox Technologies, Ltd. (MLNX) isn’t one of the market’s iconic tech stocks. Indeed, Mellanox Technologies is a name many investors may have never even heard of. After last quarter’s earnings beat and impressive earnings growth, though, MLNX stock is a name most investors may want to keep an eye on going forward.

Last quarter, the fabless semiconductor company earned 77 cents per share on sales of $176.9 million. Both topped expectations for profit of 70 cents per share and revenue of $173.9 million.

Better still, Mellanox simply left its year-ago figures of 59 cents per share and more than $141 million in sales in the dust.

Other Tech Stocks to Love: Align Technology, Inc. (ALGN)

Other Tech Stocks to Love: Align Technology, Inc. (ALGN)

Last but certainly not least, Align Technology, Inc. (ALGN) surprised plenty of people last week with its impressive earnings beat and even more impressive earnings growth.

Align Technology isn’t usually lumped in with other tech stocks — more often than not, it’s categorized as a medical tech name. This is the company that makes the Invisalign orthodontics systems. It’s heavily rooted in technology though, and as such can fairly be included in this list of deserving tech stocks. On that note …

Last quarter, Align Technology earned 60 cents per share on revenue of $230.3 million. The pros were only calling for a profit of 52 cents per share and sales of $227 billion.

But where ALGN really shined is with its 16% improvement in year-over-year revenue and the 25% increase on the year-ago bottom line of 48 cents per share.

As of this writing, James Brumley did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2016/02/tech-stocks-stx-mlnx-algn/.

©2024 InvestorPlace Media, LLC