3 Tech Growth Stocks to Consider
These growing technology companies have posted significant year-over-year increases in their quarterly revenues and net income.
SunPower Corp
The first company under consideration is SunPower Corp (NASDAQ:SPWR), a San Jose, California-based global provider of solar solutions.
The company grew its quarterly revenue by 32% to $603.8 million in fourth-quarter 2019, up from $456.8 million in the prior-year quarter. The net income was $5.44 million for the final quarter of 2019 versus a loss of $158.2 million for the same quarter of 2018.
As a result of a nearly 8% rise over the past year, the shares were trading at a price of $7.73 at close on April 29 for a market cap of $1.3 billion and a 52-week range of $4.03 to $16.04.
SunPower does not pay dividends.
Wall Street sell-side analysts recommend a hold rating for this stock.
GuruFocus assigned a low rating of 3 out of 10 for the financial strength of SunPower, but a Piotroski F-score of 5 out of 9 indicates that the financial situation of the company is stable. GuruFocus also gives the company a low score of 3 out of 10 for profitability.
Wall Street sell-side analysts predict that SunPower will grow its revenues by 5% in 2020 and 17.4% in 2021, while its earnings per share are expected to increase by 62.1% in 2020 and 409.1% in 2021.
Changyou.com Ltd
The second company under consideration is Changyou.com Ltd (NASDAQ:CYOU), a Chinese operator of an online video games platform.
The company has grown its quarterly revenue by nearly 15% to $135.2 million in the quarter ended Dec. 30, 2019, up from $117.8 million in the prior-year quarter. The net income increased from $10.15 million in the final quarter of 2018 to $59.41 million in the final quarter of 2019.
As a result of a 46.2% decrease over the past year, the share price was trading around $10.74 at close on April 29 for a market capitalization of $575.75 million and a 52-week range of $5.43 to $20.55.
Wall Street sell-side analysts recommend holding this stock.
GuruFocus assigned a high score of 8 out of 10 to the company's financial strength and a very good score of 7 out of 10 to its profitability.
AZZ Inc
The third company under consideration is AZZ Inc (NYSE:AZZ), a Fort Worth, Texas-based provider of several chemical processing metal solutions, specialty electrical equipment and other highly engineered services to industrial companies and the energy sector.
The company grew its revenue by nearly 22% to $291.14 million in the quarter ended Nov. 29, 2019, up from $239.52 million in the prior-year quarter. The net income increased by 43% to $22.04 million.
Following an almost 34% decline over the past year, the share price was trading at $31.01 at close on April 29 for a market capitalization of $813.7 million and a 52-week range of $19.31 to $50.36.
The stock grants a dividend yield of 2.2%.
Wall Street sell-side analysts recommend an overweight rating for this stock.
GuruFocus assigned a positive score of 6 out of 10 to the company's financial strength and a high score of 8 out of 10 to its profitability.
Disclosure: I have no positions in any securities mentioned in this article.
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This article first appeared on GuruFocus.
