There is a tech boom on the way right now, particularly in small-cap stocks. And one of my favorite technology stocks to buy right now is SMART Modular Technologies (WWH) Inc. (NASDAQ: SMOD). As far as tech picks go, you can’t get better than SMOD stock.
Don’t mind the complicated (and parenthetical) formal name of this pick. Smart Modular Technologies is a great tech stock to buy, and here’s why:
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SMOD stock is your custom tech shop. If you have a new product, you want these guys on the case. They are able to customize what you need with an incredibly short turnaround time. That’s exactly what companies need when they are racing to bring new products to market. Smart Modular is a top designer, manufacturer and supplier of memory products such as flash cards, memory modules and embedded computers. The company makes board-level products for thin-film transistor LCDs for use in arcade games, gambling equipment, large public displays and TVs. Smart Modular Technologies offers more than 500 products, as well as supply chain services and logistics, for computer, networking and telecommunications manufacturers. The company’s biggest customer is computer/printer giant Hewlett-Packard, which accounts for almost 30% of its sales. SMOD’s unique market advantage is its fast product turnaround times for customers.
In its latest quarterly earnings report in March, the company’s sales increased 47% to $160.1 million, while its earnings rose to 25 cents per share. The analyst community was expecting earnings of 14 cents per share and $142.5 million in sales, so Smart Modular Technologies posted a whopping 78.6% earnings surprise and a 12.4% sales surprise. Industry analysts have raised their earnings estimates 71.1% higher during the past month and a whopping 136.2% in the past three months. I expect future earnings surprises from this company.
A tentative SMOD earnings date has been set for June 25, and Smart Modular Technologies should post another impressive report. The stock has a great history of earnings surprises and should
As of this writing, Louis Navellier owned SMOD in his Emerging Growth newsletter.
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Small, innovative companies are watching their earnings explode — and they are the next ten-baggers. Investing pro Louis Navellier reveals his secrets to identifying these small cap innovators, plus five of his favorite small cap stocks — get their names FREE here!
