Investment theme: Technology
The US technology sectors offers the best capex related stories. On average, the technology sector is expected to expand earnings growth above the market rate. Social networking and the Internet of Things (IOT) will be the driving themes for the years ahead.
The favorites:
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Jabil Circuit | JBL | Components & Equipment | 19.3 % | 3.36 |
| Investment case: Restructuring of the company is well on track, benefits from the USD 65 million savings plan should be seen in 2015. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Priceline.com | PCLN | Internet services | 27.1 % | 5.02 |
| Investment case: PCLN is very strong in its execution. Gross bookings in Q4 jumped 39%.. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| FB | Social networking | 32.3 % | 2.82 | |
| Investment case: With its most recent acquisitions, FB pushes the frontier of its business beyond traditional borders. Given the present customer base, it offers investors a compelling risk/reward opportunity. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Salesforce.com | CRM | IT-Customer service | 43 % | 4.21 |
| Investment case: Salesforce.com posted the biggest year-over-year revenue growth among the Top 10 cloud vendors. The company is poised to capitalize from an unexplored market opportunity worth over USD 1 billion. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Autodesk | ADSK | Software | 27.9 % | 4.61 |
| Investment case: IOT and related cloud activities are rapidly gaining in importance. Autodesk recently bought Delcam, a supplier of advanced computer-aided manufacturing software based in the UK. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Qualcomm | QCOM | Semiconductors | 27.9 % | 4.61 |
| Investment case: IOT and related cloud activities are rapidly gaining in importance. Licensed and unlicensed semiconductors will be the key element in their deployment, and QCOM is one of the world’s key semiconductor (3G) enablers. | ||||
| Company | Ticker | Sub-Sector | Upside Potential | Sharpe (FY01) |
| Synchronoss | SNCR | Software | 27.9 % | 4.61 |
| Investment case: IOT and related cloud activities are rapidly gaining in importance. SNCR’ products have a very low unit cost for its clients who can scale-up services to a multi-billion IOT market. A rapid expansion can be expected. | ||||
Related topics:
Report Advanced technology and robotics
Report: Technology
Report: Technology ubiquity