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3 Tech Growth Stocks to Consider

GuruFocus.com
·4 min read

- By Alberto Abaterusso

Investors focused on tech growth stocks may want to consider the following companies, as their quarterly revenue and net income have had strong growth on a year-over-year basis.

Salesforce.com Inc

The first stock which tech growth investors may want to consider is Salesforce.com Inc (NYSE:CRM), a San Francisco-based developer of customer relationship management focused cloud computing solutions for businesses worldwide.


Salesforce.com Inc saw its quarterly revenue grow by nearly 29% year over year to $5.151 billion as of the second quarter of fiscal 2021, up from $3.997 billion in the same quarter of the previous fiscal year.

Salesforce.com Inc recorded net income of $2.625 billion for the second quarter of fiscal 2021, representing an almost thirtyfold increase from the net income of $91 million recorded for the same quarter of fiscal 2020.

The stock price traded at $250.30 per share at close on Oct. 27 following a 61.4% increase over the past year, determining a market capitalization of $227.77 billion and a 52-week range of $115.29 to $284.50.

3 Tech Growth Stocks to Consider
3 Tech Growth Stocks to Consider

Salesforce.com Inc does not pay dividends.

GuruFocus assigned a score of 7 out of 10 to the financial strength and of 5 out of 10 to the profitability of the company.

As of October, Wall Street recommends 16 strong buys, 25 buys, three holds and one sell rating for an average target price of $275.89 per share.

VANGUARD GROUP INC is the leader amid fund holders of the company with 7.91% of shares outstanding, followed by BlackRock Inc. with 7.19% and PRICE T ROWE ASSOCIATES INC /MD/ with 5.02% of shares outstanding.

Danaher Corp

The second stock that tech growth investors may want to consider is Danaher Corp (NYSE:DHR), a Washington-based manufacturer and marketer of solutions for diagnostics and research.

Danaher Corp saw its quarterly revenue grow by 34.4% year over year to $5.883 billion as of the third quarter of fiscal 2020, up from $4.378 billion for the prior-year quarter.

Danaher Corp recorded net income of $883.5 million for the third quarter, which marked a 32.3% advancement from the net income of $668 million recorded for the same quarter in 2019.

The stock price was trading at $239.78 per share at close on Oct. 27 after a 74.7% increase over the past year for a market capitalization of $170.33 billion and a 52-week range of $119.60 to $240.51.

3 Tech Growth Stocks to Consider
3 Tech Growth Stocks to Consider

Danaher Corp is currently paying dividends at a pace of 18 cents per common share to distribute each quarter. Nearly 30 years of quarterly distributions makes Danaher Corp's dividend history. The next payment is scheduled for Oct. 30, producing a forward dividend yield of 0.31% as of Oct. 27.

GuruFocus assigned a financial strength rating of 5 out of 10 and a profitability rating of 7 out of 10 to the company.

As of October, Wall Street recommends seven strong buys, six buys and four hold ratings for an average target price of $224.67 per share.

VANGUARD GROUP INC is the leader amid top fund holders of the company as it owns 7.01% of shares outstanding, followed by BlackRock Inc. with 6.36% and PRICE T ROWE ASSOCIATES INC /MD/ with 5.29% of shares outstanding.

Shopify Inc

The third company that tech growth investors may want to consider is Shopify Inc (NYSE:SHOP), an Ottawa (Ontario), Canada-based provider of a cloud-based multi-channel commerce platform for small and mid-sized companies.

Shopify Inc recorded revenue of $714.341 million for the second quarter of fiscal 2020, which was a 97.3% growth from $361.979 million in the same quarter in 2019.

The net income for the second quarter recorded a positive shift to $35.998 million, up from a net loss of $28.678 million the year before.

The stock price traded at around $1,082.89 per share at close on Oct. 27 after a 246.5% increase over the past year, which determined a market capitalization of $131.1 billion and a 52-week range of $282.08 to $1,141.96.

3 Tech Growth Stocks to Consider
3 Tech Growth Stocks to Consider

Shopify Inc does not pay dividends.

GuruFocus assigned a rating of 8 out of 10 for the company's financial strength and of 3 out of 10 for the profitability.

As of October, Wall Street recommends seven strong buys, 11 buys, 10 hold ratings and one underperform rating for an average target price of $1,077.34 per share.

Amid the top fund holders of the company, Capital World Investors is the leader with 4.93% of shares outstanding. It is followed by BAILLIE GIFFORD & CO with 4.83% of shares outstanding and MORGAN STANLEY with 4.59% of shares outstanding.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.