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A Trio of Tech Stocks for the Growth Focused Investor

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GuruFocus.com
·3 min read
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- By Alberto Abaterusso

The following tech companies could be of interest to growth-focused investors, since their stocks have price-earnings ratios below 20 while their trailing 12-month earnings per share have grown significantly over the past year.

CACI International Inc

The first company that qualifies is CACI International Inc (NYSE:CACI).


Based in Arlington, Virginia, CACI International is a provider of business systems, cybersecurity and enterprise-wide information solutions as well as intelligence services to various private and public organizations in North America and internationally.

The trailing 12-month net earnings increased by 36% year over year to $13.62 per diluted share as of the most recent quarter, up from $10.02 per diluted share as of the prior-year quarter.

The price-earnings ratio is 17.75 (versus the industry median of 32.58) as of Jan. 12.

As a result of an 8.44% decline over the past year, the stock closed at $241.81 per share on Tuesday for a market capitalization of $6.10 billion and a 52-week range of $156.15 to $288.59.

A Trio of Tech Stocks for the Growth Focused Investor
A Trio of Tech Stocks for the Growth Focused Investor

Currently, CACI International Inc does not pay dividends.

The company's financial strength was rated 5 out of 10 while the profitability was rated 8 out of 10 by GuruFocus.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $284 per share.

Methode Electronics Inc

The second company that holds the criteria is Methode Electronics Inc (NYSE:MEI).

Based in Chicago, Illinois, the company produces and markets electronic components worldwide.

The trailing 12-month net earnings increased 22.5% year over year to $3.43 per diluted share as of the most recent quarter, up from $2.80 per diluted share in the prior-year quarter.

The price-earnings ratio is 12.24 (versus the industry median of 25.73) as of Jan. 12.

Thanks to an 8.11% increase over the past year, the stock closed at $41.99 per share on Tuesday for a market capitalization of $1.58 billion and a 52-week range of $21.76 to $42.79.

A Trio of Tech Stocks for the Growth Focused Investor
A Trio of Tech Stocks for the Growth Focused Investor

Currently, Methode Electronics Inc pays a quarterly cash dividend of 11 cents per common share. The next payment is scheduled to be issued on Jan. 29.

GuruFocus assigned a score of 6 out of 10 to the company's financial strength and 7 out of 10 to its profitability.

On Wall Street, the stock has a median recommendation rating of overweight and an average target price of $42 per share.

Genasys Inc

The third company that makes the cut is Genasys Inc (NASDAQ:GNSS).

Based in San Diego, California, Genasys Inc is a developer of sound technologies, voice broadcast products and mass messaging solutions for emergency warning and workforce management worldwide.

The trailing 12-month net earnings were 34 cents per diluted share as of the most recent quarter, representing a significant increase from 9 cents per diluted share as of the same quarter in 2019.

The price-earnings ratio is 19.56 (versus the industry median of 25.73) as of Jan. 12.

Following a 96.75% increase over the past year, the stock closed at $6.65 per share on Tuesday for a market capitalization of $223.22 million and a 52-week range of $2.01 to $7.32.

A Trio of Tech Stocks for the Growth Focused Investor
A Trio of Tech Stocks for the Growth Focused Investor

Genasys Inc is currently not paying dividends to its shareholders. The last payment was made in June 2016.

GuruFocus assigned a score of 7 out of 10 for both the company's financial strength and its profitability.

On Wall Street, the stock has a median recommendation rating of buy and an average target price of $8 per share.

Disclosure: I have no positions in any securities mentioned in this article.

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This article first appeared on GuruFocus.