Stocks often bounce immediately after releasing their results, but then drift lower as the market digests the financial statements. The following 5 tech stocks are holding onto their gains more than a week after releasing their results and doing so on above-average volume. These are stocks to add to your watchlist ahead of the next earnings season.
Sony Corporation (NYSE: SNE)
Sony share price had just broken out of a 7-month downtrend when it reported at the end of April. The company surprised the market by beating expectations, though it lowered its full-year forecast. However, since then it has also announced a massive stock buyback and an extensive partnership with Microsoft.
The market has started to take notice of Sony again due to its diversified revenue streams and the way it is positioned to capitalize on several growth industries. Besides gaming, an exciting industry in its own right, Sony is exposed to virtual reality, robotics, artificial intelligence, and of course music.
TechTarget (NASDAQ: TTGT)
TechTarget uses cloud technology and artificial intelligence to provide content and CRM solutions for clients. The price ran too far in 2018 and investors turned their back on it. It may now appear to have fallen too far given that the company has continued to put up solid numbers.
Analysts are forecasting a big uptick in earnings from the second quarter onward. If the momentum continues it will attract more buyers, and with a market cap of just $575 million, a squeeze is likely. $22 is a key level to watch for this stock.
OpenText (NASDAQ: OTEX)
Valued at $10 billion, OpenText provides a range of content and software products that help companies transition to the digital era. The stock has fallen off the radar of analysts over the last 18 months, with very few covering it. Nevertheless, the share is being accumulated. Based on its last set of results and the share price performance this year, the company is back on the radar.
On Friday the stock price broke a key resistance level at $40. If it can retest and hold that level, it may well rally into the next earnings season.
Upland Software (NASDAQ: UPLD)
Upland provides cloud-based process management solutions and has a market capitalization of $1.23 billion. Upland’s financial results were released on May 2, with the company beating expectations for revenue and EPS.
The company’s revenue growth is beginning to accelerate, and while the company lost money on a GAAP accounting basis, it made a non-GAAP profit. With margins improving and revenue growth accelerating, the company could begin to look like a solid business in the next year. The market is realizing this and the stock has seen sustained buying on good volumes since the earnings call.
SolarEdge Technologies (NASDAQ: SEDG)
SolarEdge designs and builds inverter systems for solar installations around the world. The company is worth $2.6 billion and trades on a forward multiple of 14.7, having grown earnings at 46% a year over the last 5 years.
The stock price had a massive run in 2017, but investors became skeptical in 2018 and the share price fell over 50%. On May 6, the company reported better than expected earnings growth of 29% and guided 2nd quarter revenue higher. Importantly, the company has managed to improve its margins while revenue continues to grow steadily.
Investors are beginning to realize how well positioned SolarEdge is for the future, and the company is now at the right size for institutional investors to take notice of it.
The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Grizzle hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.