Stock Score Report Weekly for Mar. 15

The technology sector has been a strong outperform in recent years, and conditions are still looking good for the sector leaders.

Rising interest rates could have a negative impact on the overall market, but technology stocks will be somewhat shielded because they tend to carry less debt than companies in other sectors. Keeping this in mind, we wanted to look over the current rankings on InvestorsObserver’s new Stock Score Report to see which tech stocks rank the best.

The new screening system combines fundamental and technical analysis when ranking the overall stock universe, so in order to be a top-ranking stock in the screener, stocks need to not only have shown recent strength, but also have solid underlying fundamentals which increase the likelihood of future gains.

It should come as no surprise that the five stocks we found are all leaders in their respective fields. Technology is rapidly changing, and competition is fierce, but focusing on the leading companies in the space is usually a good bet. Management has clearly proven an ability to adapt through the years, and an ability to build strong customer loyalty to their products and or services.

Let’s take a closer look at five of the top ranking tech stock’s in today’s screener.

Apple

Tech giant, and iPhone maker Apple (AAPL) is once again trading near its all-time high, and as such the stock has incredibly strong technical scores. While the fundamental rank is a little lower than we like to see, the stock’s overall ranking of 85 from InvestorsObserver’s Stock Score Report puts it near the top of the stock universe. The biggest concern for Apple is weakening iPhone sales. Last quarter the company “only” sold 77.3 million iPhones. This number was down from 78.3 million during the same period the previous year, and the decline resulted in a selloff in the stock. However, the selloff was short lived, as traders opted instead to focus on record earnings and revenues during the quarter. While the company sold fewer iPhones, the average price of the iPhones it did sell shot up from $695 last year, to $796 during the most recent quarter, which is a clear sign that Apple enthusiasts are still very much interested in the company’s products despite higher costs. The stock has a forward P/E of just 13.7, and trades at $181.52 versus an average price target of $189.52.

Click here to see a full copy of the report.

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Chart courtesy of www.stockcharts.com

Facebook

Facebook (FB) is the undisputed king of social media, and the company has emerged as a leader in online advertising. Facebook has enjoyed steady gains since going public, and the stock is currently trading just 6.5% below its all-time high. Past concerns over the company’s ability to generate revenue from its mobile users are a distant memory, and the company continues to grow, with analysts expecting to see earnings growth of 27.2% per annum over the next five years. Facebook is doing a good job expanding with smart and timely acquisitions which will lead to more revenue streams moving forward. FB has incredibly high long-term technicals and fundamentals and gets an overall ranking of 86 from InvestorsObserver’s Stock Score Report. The stock now trades at $182.32, versus an average price target of $221.46.

Click here to see a full copy of the report.

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Chart courtesy of www.stockcharts.com

Intel

Chip makers have enjoyed strong gains over the last year, with Intel (INTC) rising sharply since last summer, and currently sitting just shy of its 52-week high. The biggest news for Intel at this time is the decision by President Trump to block Broadcom’s (AVGO) $117 billion takeover offer of rival Qualcomm (QCOM). Had the two managed to merge, the new company would have poised a serious threat to Intel’s position as one of the most dominant companies in the sector. INTC moved higher on the news, and is currently trading at $51.80, versus an average price target of $52.41. The stock has near perfect technical scores, which combined with a good, but not great, fundamental ranking results in an overall ranking of 83 from InvestorsObserver’s Stock Score Report.

Click here to see a full copy of the report.

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Chart courtesy of www.stockcharts.com

Micron Technology

One of the hottest chip stocks over the last year has been Micron Technology (MU). We have seen it among the top stocks across all sectors for months in the new ranking system, and it remains so with an overall ranking of 91 from InvestorsObserver’s Stock Score Report. MU gets a rare perfect score for its short-term technical rankings, and its long-term technical and fundamental rankings are also impressive. MU has managed to grow earnings at a rabid pace in recent years, with profits up 48.4% per annum over the last five years, and analysts forecast earnings will continue to move higher, with estimated annual earnings growth of 27.2% for the next five years. The growth numbers are impressive and combined with a forward P/E of just 6.9 suggests plenty of additional upside for the stock down the road. MU trades at $60.13, above its $59.30 average price target, but the company next reports earnings on March 22, and if it is able to post a positive earnings surprise, you can expect analysts to ratchet up their targets and allow shares to build on recent gains.

Click here to see a full copy of the report.

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Chart courtesy of www.stockcharts.com

Alphabet

Alphabet (GOOGL) is the parent company behind search engine giant Google. Google has long dominated the search engine market, and as such has been the dominate player in online advertising. Google’s power and stranglehold over search is so convincing, that a company’s rankings in the search list can literally make or break its future. Despite its maturity, the company continues to grow, and analysts forecast earnings growth of 24.6% per annum over the next five years, which is amazing for company as old as Google. The stock is just shy of its all-time high, which gives it very strong technical scores. Its strong technical rankings, in tandem with a fundamental ranking of 86 gets GOOGL an overall 89 ranking from InvestorsObserver’s Stock Score Report. GOOGL trades at $1,146.81 versus an average price target of $1,245.57.

Click here to see a full copy of the report.

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Chart courtesy of www.stockcharts.com

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