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The most excellent bets in the the tech sector for 2012

The tech sector is the only area with less debt and more cash in its books.The only main reason in this field is financial strength. The tech monsters has started or to raise dividends. For every business, technology has become an imperative tool. In order to find a place in the competetion, many organizations are pumping money into innovative hardware and also regularly updating their software. In the business cycle, the tech sector is less vulnerable. Globally, this year, the IT expenditure in corporate is anticipated to increase by 4.6%. The direct beneficiaries are the US tech organizations. A lion’s share of their revenue is generated abroad.


Some of the standouts:

Microsoft (fortune 500, MSFT)

Even though in the last ten years, Microsoft has slowed down, as new and new challengers have entered into the arena, and with the coming of the mobile computing, its pc business has slowed down, it still stays as a steady franchise with a massive reach.


Windows, the flagship product of Microsoft is still the broadly used operating system in the world. Last year the ninety five percent of the shipped PCs, were installed with the Windows 7 OS. As more and more businesses are looking to improve their technology, 80% of Microsoft sales have moved forward.


It is expected that Microsoft is going to stabilize its position further, with the launch of windows 8 this year. It will have touch compatibility that is well suitable for the tablets and smart phones. The ultra books (a tablet and notebook crossover) will also run on this new edition.


In the meantime, the stock is inexpensive, at the 2012 estimated earnings; it trades 8.4 times against 11.5 for this area, with a yield of 3.1% dividend.


EMC (fortune 500, EMC)

In data storage, the EMC has been a front runner for the fortune 500 organizations. Now for the next big leap, the EMC is at the front position in storage visualization, tech, which permits the IT departments inside a pool capacity of a company and function more effectively. There is huge potential in the market. Last year, a Symantec research discovered more than eighty percent of the businesses had thought of data storage to be virtualized.


The company also offers virtual servers (which minimizes the committed machines numbers, required to make the application run) and is broadening its base by providing the smaller companies with data solutions.


It is expected the earnings are to increase by 16% each year. It has an improved value a P/E 14 times the predictable earnings for next year against 25 for some competitors.

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