5 tech stocks to watch for June 2022

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The tech sector has suffered immense sell-offs since the start of the year, in part due to the Federal Reserve’s hawkish stance to fight inflation and growing geopolitical uncertainties. However, rising technology investments, strong corporate earnings, and the need for technological advancements in various industries have supported the growth of the sector.. According to Wedbush analyst Dan Ives, now may be the right time to aggressive tech own names as the sector seems oversold.

Also, David Groombridge, VP Analyst, Gartner, said, “CEOs know they need to accelerate digital business adoption and are looking for more direct digital pathways to connect with their customers.” Additionally, emerging technologies, such as artificial intelligence, cloud computing, and augmented reality and virtual reality, are expected to fuel the industry’s demand. According to Gartnerglobal IT spending is expected to reach $4.4 trillion in 2022, up 4% from 2021.

In this context, we think it might make sense to add stocks of fundamentally sound technology companies Jabil Inc. (JBL), CTS Corporation (CTS), Arrow Electronics, Inc. (ARW), Brother Industries, Ltd. (BRTHY), and Sanmina Corporation (SANM) to your watch list now.

Jabil Inc. (JBL)

Based in St. Petersburg, Florida, JBL provides manufacturing services and solutions worldwide. The Company has two operating segments: Electronic Manufacturing Services and Diversified Manufacturing Services. It provides electronic product design, production and management services.

Last month, JBL launched Qfinity, an autoinjector platform, a simple, reusable and modular solution for subcutaneous (SC) self-administration of medications, at a lower cost than market alternatives, supported by the emerging prioritization of sustainable drug delivery within the pharmaceutical industry. JBL has been a trusted partner of one of the leading healthcare brands for more than 30 years, and the company now offers the Qfinity autoinjector platform to help patients self-administer a variety of injectables, including larger volume, higher viscosity medications.

For the second quarter, ending February 28, 2022, JBL’s net sales increased 10.6% year-on-year to $7.55 billion. His operating result rose 32.6% from its value a year ago to $313.00 million, while its net profit rose 46.1% from its year-ago quarter to 222, 00 million dollars. The company’s EPS rose 52.5% year over year to $1.51.

Analysts expect JBL’s revenue to grow 13.9% year-over-year to $8.22 billion for its third quarter, ending May 31, 2022. The consensus estimate EPS of $1.62 represents a 24.5% year-over-year improvement for the third quarter, ending May 31. , 2022. Additionally, it has an impressive history of earnings surprises; it has exceeded consensus EPS estimates in each of the past four quarters. The stock has gained 9% in price over the past year.

JBL’s POWR ratings reflect this promising outlook. The company has an overall A rating, which translates to Strong Buy in our proprietary rating system. POWR ratings rate stocks on 118 separate factors, each with its own weighting.

The stock also has a B rating for growth, sentiment and value. Within the C-rated technology and services industry, it is ranked No. 5 out of 80 stocks.

To see additional POWR ratings for stability, quality and momentum for JBL, click here.

CTS Company (CTS)

Based in Lisle, Illinois, CTS manufactures and sells sensors, actuators and connectivity components in North America, Europe and Asia. The company provides sensors and actuators for passenger and commercial vehicles, connectivity components for telecommunications infrastructure, information technology and other high-speed applications.

During the first quarter, ending March 31, 2022, CTS net sales increased 15% year over year to $147.70 million. Its operating profit rose 40.8% from its value a year ago to $26.05 million, while its adjusted net profit rose to $21.70 million, up of 44.7% compared to the quarter of the previous year. The company’s EPS rose 45.7% year-over-year to $0.67.

The consensus EPS estimate of $0.60 for the second quarter, ending June 30, 2022, represents 16% year-over-year growth. Analysts expect its revenue to grow 12.9% year-over-year to $146.31 million for the second quarter, ending June 30, 2022. Additionally, it has a impressive track record of earnings surprises; it has exceeded consensus EPS estimates in each of the past four quarters.

The stock has gained 12.2% year-to-date and 19.6% over the past nine months.

CTS’ strong fundamentals are reflected in its POWR ratings. The stock has an overall A rating, which equates to a strong buy in our POWR rating system. The stock also has an A rating for growth and quality and a B for sentiment. Within the C-rated technology and electronics industry, it is ranked No. 4 out of 48 stocks.

In total, we rate CTS on eight distinct levels. Beyond what we’ve stated above, we’ve assigned CTS ratings for stability, value, and momentum. Get all CTS odds here.

Arrow Electronics, Inc. (ARW)

Based in Centennial, Colorado, ARW provides products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, Middle East, Africa and Asia-Pacific. . Global Components and Global Enterprise Computing Solutions are its two operating segments.

ARW’s sales increased 8.2% year-over-year to $9.07 million in the first quarter, ending April 2, 2022. Its operating profit increased 70.4 percent from its prior-year value of $510.38 million, while its net profit was $364.75, up 76.8. % compared to the quarter of the previous year. The company’s EPS rose 95.2% year over year to $5.31.

Analysts expect ARW’s revenue to grow 9.7% year-over-year to $9.39 billion in the second quarter, ending June 30, 2022. The company’s EPS is expected to rise 68 .5% YoY to $5.63 in Q2, ending June. 30, 2022. Additionally, it has an impressive track record of earnings surprises; it has exceeded consensus EPS estimates in each of the past four quarters.

Shares of the company have jumped 2% in the past three months.

It’s no surprise that ARW has an overall A rating, which equals Strong Buy in our POWR rating system. ARW has a B rating for growth, momentum and value. In the Technology – Electronics industry, it is ranked #3.

Click here to see additional POWR ratings for ARW (Quality, Stability, and Sentiment).

Brother Industries, Ltd. (BRTHY)

Based in Nagoya, Japan, BRTHY manufactures and sells communication and printing equipment internationally. It has six operating segments Printing & Solutions, Personal & Home, Machinery, Network & Contents, Domino and Others.

In its fiscal year ended March 31, 2022, BRTHY’s revenue increased 12% year-on-year to 710.94 billion yen ($4.88 billion). Its operating profit rose 100.1% from its value a year earlier at 85.50 billion yen ($5.49 billion), while its profit for the period amounted to 61.03 billion yen ($471.15 million), up 149% from the prior year quarter. The company’s EPS increased 149% year over year to ¥94.07.

Analysts expect BRTHY’s revenue to grow 78.7% year-over-year to $5.74 billion in fiscal 2023.

BRTHY’s strong fundamentals are reflected in its POWR ratings. The stock has an overall A rating, which equates to a strong buy in our POWR rating system. The stock also has an A rating for stability and a B rating for value and quality. Within the Technology – Electronics industry, it is ranked #2.

In total, we rate BRTHY on eight separate levels. Beyond what we’ve stated above, we’ve also assigned BRTHY ratings for growth, sentiment, and momentum. Get all the BRTHY ratings here.

Sanmina Company (SANM)

Based in San Jose, California, SANM offers integrated manufacturing solutions, components, products and repairs, logistics and aftermarket services worldwide. It operates in two businesses – Integrated Manufacturing Solutions; and components, products and services.

For the first quarter, ending April 2, 2022, SANM net sales increased 12.5% ​​year over year to $1.911 million. Its operating profit rose 27% from its value a year ago to $82.23 million, while its net profit improved by 13.1% compared to the quarter of the year. previous $53.22 million. The company’s EPS rose 18.6% year-over-year to $0.83.

The consensus EPS estimate of $1.11 for the third quarter, ending June 30, 2022, represents a 12.5% ​​year-over-year improvement. Analysts expect SANM’s revenue to grow 13.4% year-over-year to $1.88 billion for the third quarter ending June 30, 2022. Additionally, the company has an impressive track record of earnings surprises; it has exceeded consensus EPS estimates in three of the past four quarters.

The stock has gained 5.4% year-to-date and 18.2% over the past six months.

It’s no surprise that SANM has an overall B rating, which equates to Buy in our POWR rating system. SANM has a B rating for quality. In the Technology – Services industry, it is ranked #7.

Click here to view additional POWR ratings for SANM (Stability, Momentum, Growth, Value and Sentiment).


JBL shares were trading at $61.57 per share Thursday morning, up $0.94 (+1.55%). Year-to-date, JBL is down -12.24%, compared to a -13.15% rise in the benchmark S&P 500 over the same period.

About the Author: Spandan Khandelwal

Spandan’s is a financial journalist and investment analyst specializing in the stock market. Through its ability to interpret financial data, it aims to help investors assess a company’s fundamentals before investing. After…

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