Saturday, August 9, 2008

Technology stocks with high projected growth.

Q2 earnings are almost over. The best performing sectors in terms of earnings growth y-o-y are energy and technology. Yearly earnings growth change is 25% respectively 15%.

Full Standard and Poor’s data with actual and estimated earnings growth per each S&P500 sector can be seen here.

As you can see estimates Q3 and Q4 for Energy are set very high. Currently the sector is expected to increase earnings in Q3 by 54% y-o-y and for technology the growth is foreseen 11%.

After recent turnaround with crude oil price it will be not be easy to reach this earnings growth for energy companies. Technology earnings should not be hit and therefore my outlook remains positive. I run my fundamental screener for large cap technology stocks (market cap > 5 b). All stocks listed below have estimated earnings growth higher than 25% for next 5 years.

I also scanned top growing stocks in the S&P500 and the list contains mostly energy stocks.

Related tickers: (BIDU), (FSLR), (VMW), (STP), (RIMM), (PCS), (NIHD), (GOOG), (BRP), (HTX), (WFR), (CHL), (CTSH), (AMX), (JNPR)


2 Responses to "Technology stocks with high projected growth."

Anonymous said... August 11, 2008 at 10:16 PM

Hi Vladimir, do you think that oil prices reached high peak for this year? Do you recommend to invest to oil now?

Vlada, Czech Republic said... August 11, 2008 at 11:23 PM

I don't expect to cross $200 anytime soon. Slowing global economies show slowing demand. Even Chinese crude import declined due to recent price level.
On the other site any geopolitical tension or forecasted high hurricane season could push price higher.
In my view crude could go sideway in channel $100-125.