FAST Graphs At-A-Glance

Articles which show the principles for reading and analyzing FAST Graphs At-A-Glance.

Technology Cakes –Have it all; High Growth and Eat It Too, High Yield

FAST Graphs - Tuesday, April 24, 2012

In the not too recent past, when people thought of technology stocks they were mainly focused on high growth.  However, as technology has evolved and become more mainstream, so too have technology stocks.  Today there are many technology stocks that are paying dividends, but best of all, not at the sacrifice of potential growth. This article looks at five technology stocks with yields equivalent to or greater than the 30-year treasury bond, that offer above-average expected future growth while simultaneously available at very attractive valuations.

The following table summarizes five technology stocks with yields equivalent to or greater than the 30-year treasury bond that appear to be attractively valued, and lists them in order of Estimated Total Return from highest to lowest. From left to right, the table shows the company’s stock symbol and name. Next, two valuation metrics are listed side-by-side, the historical normal PE ratio followed by the current PE ratio for perspective. Then the company’s Estimated EPS growth, five-year estimated annual total return is shown next, and then the current dividend yield.

A Closer Look at the Past and the Future Potential

Since a picture is worth 1,000 words, we’ll take a closer look at the past performance and future potential of each of our five candidates through the lens of F.A.S.T. Graphs™.

Earnings Determine Market Price: The following earnings and price correlated historical graphs clearly illustrates the importance of earnings. The Earnings Growth Rate Line or True Worth™ Line (orange line with white triangles) is correlated with the historical stock price line. On graph after graph the lines will move in tandem. If the stock price strays away from the earnings line (over or under), inevitably it will come back to earnings. The historical normal PE ratio line (dark blue line with*) depicts a PE ratio that the market has historically applied.

The orange True Worth™ line and the blue normal PE ratio line provide perspectives on valuation.  The orange line reflects the fair value of each company’s earnings relative to its growth rate achievement, and the blue line reflects how the market has traditionally valued the company’s stock relative to its fair value. The blue line represents a trimmed historical normal PE ratio (the highest and lowest PEs are trimmed).  These lines should be viewed as barometers or aids for ascertaining sound buy, sell or hold decisions. Rather than seen as absolutes, they should be seen as guides to better thinking.

About Seagate Technology (STX):  Directly from their website

“Seagate is a worldwide leader in hard disk drives and storage solutions.”

 

The consensus of 19 leading analysts reporting to Capital IQ forecast Seagate Technology’s long-term earnings growth at 46.9%.  Seagate Technology has high long-term debt at 55% of capital. Seagate Technology is currently trading at a P/E of 4.8, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 48. If the earnings materialize as forecast, Seagate Technology’s True Worth™ valuation would be $1874.32 at the end of 2017, which would be a 123.3% annual rate of return from the current price.

 

About Anixter International Inc (AXE):  Directly from their website

“Anixter International is a leading global distributor of communication and security products, electrical and electronic wire & cable, fasteners and other small parts. The company adds value to the distribution process by providing its customers access to 1) innovative inventory management programs, 2) more than 450,000 products and over $1 billion in inventory, 3) approximately 225 warehouses with 7 million square feet of space, and 4) locations in over 260 cities in more than 50 countries. Founded in 1957 and headquartered near Chicago, Anixter trades on the New York Stock Exchange under the symbol AXE.”

 

The consensus of 11 leading analysts reporting to Capital IQ forecast Anixter International Inc’s long-term earnings growth at 15%.  Anixter International Inc has medium long-term debt at 45% of capital. Anixter International Inc is currently trading at a P/E of 11.9, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, Anixter International Inc’s True Worth™ valuation would be $182.33 at the end of 2017, which would be a 22.4% annual rate of return from the current price.

 

About ClickSoftware Technologies (CKSW):  Directly from their website

“ClickSoftware is the leading provider of automated workforce management and optimization solutions for every size of field service business. Its portfolio of solutions, available on demand and on premise, create business value through higher levels of productivity, customer satisfaction and operational efficiency. Its patented concept of 'continuous planning and scheduling' incorporates customer demand forecasting, long and short term capacity planning, shift planning, real-time service scheduling software, mobile workforce management , enterprise mobility, and location-based services, as well as on-going communication with the consumer on the expected arrival time of the service resource.”

 

 

The consensus of 1 leading analyst reporting to Capital IQ forecast ClickSoftware Technologies’ long-term earnings growth at 22.2%.  ClickSoftware Technologies has no debt. ClickSoftware Technologies is currently trading at a P/E of 23.1, which is inside the value corridor (defined by the five orange lines) of a maximum P/E of 26.6. If the earnings materialize as forecast, ClickSoftware Technologies’ True Worth™ valuation would be $27.23 at the end of 2017, which would be a 20.5% annual rate of return from the current price.

 

About J2 Global Inc (JCOM):  Directly from their website

“j2 Global (NASDAQ: JCOM) provides cloud services for business, offering Internet fax, virtual phone, hosted email, email marketing, online backup, unified communications, and CRM solutions. Founded in 1995, the company's messaging network spans more than 49 countries on six continents. j2 Global markets its services principally under the brand names eFax®, eVoice®, FuseMail®, Campaigner®, KeepItSafe®, and Onebox®. As of December 31, 2011, j2 Global had achieved 16 consecutive fiscal years of revenue growth.”

 

 

The consensus of 6 leading analysts reporting to Capital IQ forecast J2 Global Inc’s long-term earnings growth at 10%.  J2 Global Inc has no debt. J2 Global Inc is currently trading at a P/E of 10.5, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, J2 Global Inc’s True Worth™ valuation would be $58.31 at the end of 2017, which would be a 18% annual rate of return from the current price.

 

About Intel Corp (INTC):  Directly from their website

“Intel (NASDAQ: INTC) is a world leader in computing innovation. The company designs and builds the essential technologies that serve as the foundation for the world’s computing devices.”

 

The consensus of 15 leading analysts reporting to Capital IQ forecast Intel Corp’s long-term earnings growth at 10%.  Intel Corp has low long-term debt at 13% of capital. Intel Corp is currently trading at a P/E of 10.9, which is below the value corridor (defined by the five orange lines) of a maximum P/E of 18. If the earnings materialize as forecast, Intel Corp’s True Worth™ valuation would be $60.61 at the end of 2017, which would be a 17% annual rate of return from the current price.

 

Summary and Conclusions

Generally speaking, technology stocks have recently been weak relative to the overall markets.  On the other hand, many are reporting solid earnings and expected to continue to grow at above-average rates over the foreseeable future.  The five companies featured in this article appear to represent investments where investors can have their cake and eat it too.  Each of these companies are trading at valuations low by historical standards, and at PE ratios that are equal to or below their expected future earnings growth rates. Therefore, investors willing to take on a little risk in order to have it all, growth, value and high income might want to look further into each of these interesting technology investment opportunities.  As always, we recommend you conduct your own due diligence.

Disclosure:  Long INTC at the time of writing.

Disclaimer: The opinions in this document are for informational and educational purposes only and should not be construed as a recommendation to buy or sell the stocks mentioned or to solicit transactions or clients. Past performance of the companies discussed may not continue and the companies may not achieve the earnings growth as predicted. The information in this document is believed to be accurate, but under no circumstances should a person act upon the information contained within. We do not recommend that anyone act upon any investment information without first consulting an investment advisor as to the suitability of such investments for his specific situation. A comprehensive due diligence effort is recommended.

Comments
Anonymous commented on 11-Sep-2012 10:23 PM
The problems for the daily newsLouis Vuitton Handbags outletCoach Factory outletper continue to grow. Print
circulation and ad revenues declined again last year, but part of the newspaper
Louis Vuitton Handbagsndustry is trying toCoach Factoryfigure oPrada Outlett
Coach Outlet Onlineow to earn more money from digital products. "Slightly morePrada bagsthan a tenth of sCoach
Outletrviving U.S. dailies have launched some sort of diCoach Outlet Onlineital subscription plan or pay wall," the report states.
Anonymous commented on 08-Oct-2012 06:03 AM
kcfya sac louis vuitton homme
dslyyLouis Vuitton moins cher
yzqtgLouis Vuitton moins cher
evdtusac louis vuitton homme
ydvfiwww.sacvuittonofficiel.com
xmlymwww.sacvuittonpascherefra.com
http://www.saclouisvuittonpascherefr.com
Anonymous commented on 08-Oct-2012 01:41 PM
zjfzx sac louis vuitton femme ,
wdeghSac Louis Vuitton Pas Cher ,
gwttbSac Louis Vuitton Pas Cher ,
nwkxwSac Louis Vuitton Pas Cher ,
nkpptwww.sacvuittonsfra.com/#3785 ,
khekrwww.pascherlouisvuittons.com ,
ixjqh http://www.pascherlouisvuittons.com
Anonymous commented on 09-Oct-2012 01:46 AM
xvpxf sac louis vuitton homme
bfswqSac Louis Vuitton Pas Cher
wugdpLouis Vuitton moins cher
uvduySac Louis Vuitton Pas Cher
ywoeowww.vuittonpascherofficiel.com
znmwuwww.sacvuittonpascherefra.com
http://www.saclvuittonpascher.com
Anonymous commented on 12-Oct-2012 05:34 AM
brsvb louis vuitton pas cher
qjrpuLouis Vuitton moins cher
jywzssac louis vuitton
yppmpLouis Vuitton moins cher
squkcwww.sacvuittonofficiel.com
kmvkmwww.saclvuittonpascher.com
http://www.sacvuittonofficiel.com
Anonymous commented on 16-Oct-2012 02:16 AM
qgedt Louis Vuitton moins cher
egksxLouis Vuitton Pas Cher
lzbduLouis Vuitton moins cher
uxqaaSac Louis Vuitton Pas Cher
misvcwww.saclvuittonfra.com/#aixm
xmemrwww.saclouisvuittonofficiel.com/#rcqz
http://www.sacamainvuitton.com
Anonymous commented on 16-Oct-2012 06:13 AM
www.sacvuittonpascherefra.com ,Louis Vuitton moins cher
www.saclouisvuittonpascherefr.com/#eljc ,sac louis vuitton
www.fralouisvuittonpascher.com/#xffu ,louis vuitton pas cher
www.vuittonpascherofficiel.com ,sac louis vuitton
Anonymous commented on 18-Oct-2012 06:54 AM
achat viagra en ligne
acheter viagra en ligne
generique viagra
viagra pas cher en ligne
Anonymous commented on 18-Oct-2012 10:32 AM
Hiya very nice website!! Guy .. Beautiful .. Wonderful .. I'll bookmark your blog and take the feeds additionally…I'm glad to find so many helpful info right here in the submit, we want work out more techniques in this regard, thanks for sharing.
slots games australian pokiesfree pokies
Anonymous commented on 18-Oct-2012 01:30 PM
I want to show thanks to this writer just for bailing me out of this type of crisis. Just after searching through the the net and getting things that were not productive, I was thinking my life was done. Being alive devoid of the strategies to the problems you have resolved all through your good guide is a crucial case, and the ones which may have in a negative way affected my career if I had not come across your site. Your main skills and kindness in controlling a lot of stuff was very helpful. I don't know what I would've done if I had not encountered such a solution like this. I can also at this point relish my future. Thank you very much for the high quality and effective help. I won't hesitate to propose your blog to anybody who should receive support on this area. sump pump
Anonymous commented on 18-Oct-2012 01:32 PM
rcbzjg ugg boots sale,
lwdkjcugg boots sale,
cekamuugg boots sale,
uvlsurugg boots sale,
gkilw bootsoutletforus,
aaefuuggbootssale,
uechn http://www.bootsonlinesaleuk.com
Anonymous commented on 19-Oct-2012 02:50 AM
The must have summer
Canada Goose JacketsOutlet styles include the timeless denim and leather as well as cropped and trench-style style items.
Canada Goose Parkas Outletare great in winter for warmth; they can be great on different styles and can go with casual or formal looks.The
Canada Goose OutletExpedition Parka provides heavy-duty warmth thanks to its high-quality duck down insulation.It is not a novelty that military style tops the leading fashion trends
Canada Goose Jackets Outletdue to its refined and classic influences and qualities.
Anonymous commented on 19-Oct-2012 04:49 AM
Designs of this season give you the unlimited cool feelings in this cool summer. The new designs of Coach products in the Coach Outlet enrich our daily life.
Anonymous commented on 19-Oct-2012 10:47 AM
I understand that in Egyptian hieroglyphics Louis Vuitton Official Website the course of development from ideograms to phonetic writing can be studied.Regarding the craft,the goods fromCoach Outlet Store is tight,the seams are aligned and details emulate the designer's actual handbags.west plus southwest around the commune,Louis Vuitton Online Store is usually a pure gardening plus Commune.Coach Outlet Online The staff was adamant about the policy even though they acknowledged there was nothing stopping us from coming in the next day and purchasing from another shop girl.Louis Vuitton Outlet iphone cases I was excited to see this coat online since I love Louis Vuitton, and I needed a new coat like this.This Louis Vuitton Canada for sale belongs to the sounding just what are termed asLouis Vuitton vintage best sellers.
Anonymous commented on 19-Oct-2012 03:19 PM
I got what you intend, thanks for putting up.Woh I am happy to find this website through google. "You must pray that the way be long, full of adventures and experiences." by Constantine Peter Cavafy.Click This Link more helpful hintsNavigate To These Guysseefind more
Anonymous commented on 19-Oct-2012 07:17 PM

Anonymous commented on 20-Oct-2012 05:03 PM
akhpf Sac Louis Vuitton Pas Cher
wvkhlSac Louis Vuitton Pas Cher
nqwoxSac Louis Vuitton Pas Cher
hjsiaLouis Vuitton Pas Cher
zeubgwww.vuittonpascherfra.com/#zioz
ahikdwww.saclvuittonfra.com/#qpjh
http://www.fravuittonsac.com
Anonymous commented on 21-Oct-2012 10:45 AM
no title This is very interesting, You're a very skilled blogger. I've joined your rss feed and look forward to seeking more of your great post. Also, I have shared your site in my social networks!look what i found
Anonymous commented on 21-Oct-2012 04:16 PM
Really nice design and style and wonderful content material , nothing else we require : D.halogen ovens
Anonymous commented on 22-Oct-2012 06:13 AM
YAPPwXfL Uggs Sale leluHjAE PzpjpoQvUggs On Sale CVmlhaUG
Anonymous commented on 22-Oct-2012 11:27 AM
fvxid Sac Louis Vuitton Pas Cher
jumsjsac louis vuitton Pas Cher
cnqcbSac Louis Vuitton Pas Cher
pxypgSac Louis Vuitton Pas Cher
lptnowww.fralouisvuittonpascher.com
tbcnpwww.saclvuittonfra.com/#rfzs
http://www.saclvuittonfra.com
Anonymous commented on 22-Oct-2012 04:57 PM
You have observed very interesting details ! ps decent web site . "Mediocrity knows nothing higher than itself, but talent instantly recognizes genius." by Conan Doyle.best Dehumidifier |best coffee grinder 2012 | Best Generator |Humidifier reviews |leaf blowers | paint sprayers

Post a Comment




Captcha Image


Testimonials


“I appreciate your work, Chuck. As a subscriber to FAST Graphs™, I use the tool to decide on whether to purchase additional shares of what I currently hold or to add a new holding. Your articles help me make full use of the tool and give other readers valuable information, if they take the time to learn. One of the biggest enhancements that I use is the FFO data added for MLPs and REITs.”


“When FAST Graphs™ were unavailable because of Hurricane Sandy, I realized how much I need them in order to make investment decisions.

(Wish I could be) Long FAST Graphs!!!”


“One more vote for the value of FAST Graphs™; just started a subscription to Chuck's great service (premium), and am having a ball analyzing so many stocks quickly.”


“I feel very ill-equipped to make investment decisions without Fast Graphs. :-)”


“Yesterday, I signed up for your F.A.S.T. Graphs™. It's a really amazing, valuable tool for checking over/undervaluation of stocks. Wish I had it years and years ago!!”


“Love the F.A.S.T. Graphs™: One glance and you know a whole lot.”


“About Chuck's F.A.S.T. Graphs™: They are invaluable to me in making decisions about the stocks I own (in addition to what you are saying about doing other research) and the ones I hope to own in the future.”


"Chuck -- Your proprietary F.A.S.T. Graphs™ are a VERY impressive tool!"


“If there were an Investor Hall of Fame for people who have helped others with their investing, and sharing valuable information, you and your F.A.S.T. Graphs™ would get one of my selections.”


“I love Chuck's F.A.S.T. Graphs™! Well worth the price of admission for what he gives you.”


"Chuck - Thank you for your well thought out articles. I tend to be a visual type of person so I really appreciate the F.A.S.T. Graphs™ approach."


"Great article, as always! I always look forward to your articles, and am especially eagerly awaiting your next in this series. I find the F.A.S.T. Graphs™ extremely helpful."


“Your F.A.S.T. Graphs™ put all of this in a single artful picture and the accompanying spreadsheets hammer home the point.”


“I use the F.A.S.T. Graphs™ method to evaluate all of my ideas. I recommend it for individual investors, since it helps them focus on data and get past the many emotional arguments.”


“I recently subscribed to the F.A.S.T. Graphs™, and these articles are helping me learn how to better use them. They really do give you a good quick look at the valuations picture. A much needed tool!”


“I also always appreciate the clear-cut information provided through your F.A.S.T. Graphs™ and articles.”


“Thanks, Chuck, for your F.A.S.T. Graphs™. Each of these graphs is worth 1,000 words in describing a company's growth, consistency and valuation. Thanks for sharing your graphs.”


“Thanks, Chuck. Love the F.A.S.T. Graphs™! It makes investing so much more clear.”


“Chuck's F.A.S.T. Graphs™: They are invaluable to me in making decisions about the stocks I own (in addition to what you are saying about doing other research) and the ones I hope to own in the future.”


”I am amazed at the usefulness of your F.A.S.T. Graphs™ and I plan on using them for a long time to come.”


“Chuck's F.A.S.T. Graphs™ will give you a tool to find those well chosen stocks...”


“Thanks for the F.A.S.T. Graphs™, Chuck. They are the best tool I've used.”


Recent Posts


Tags


Archive

    Testimonials


    “I appreciate your work, Chuck. As a subscriber to FAST Graphs™, I use the tool to decide on whether to purchase additional shares of what I currently hold or to add a new holding. Your articles help me make full use of the tool and give other readers valuable information, if they take the time to learn. One of the biggest enhancements that I use is the FFO data added for MLPs and REITs.”


    “When FAST Graphs™ were unavailable because of Hurricane Sandy, I realized how much I need them in order to make investment decisions.

    (Wish I could be) Long FAST Graphs!!!”


    “One more vote for the value of FAST Graphs™; just started a subscription to Chuck's great service (premium), and am having a ball analyzing so many stocks quickly.”


    “I feel very ill-equipped to make investment decisions without Fast Graphs. :-)”


    “Yesterday, I signed up for your F.A.S.T. Graphs™. It's a really amazing, valuable tool for checking over/undervaluation of stocks. Wish I had it years and years ago!!”


    “Love the F.A.S.T. Graphs™: One glance and you know a whole lot.”


    “About Chuck's F.A.S.T. Graphs™: They are invaluable to me in making decisions about the stocks I own (in addition to what you are saying about doing other research) and the ones I hope to own in the future.”


    "Chuck -- Your proprietary F.A.S.T. Graphs™ are a VERY impressive tool!"


    “If there were an Investor Hall of Fame for people who have helped others with their investing, and sharing valuable information, you and your F.A.S.T. Graphs™ would get one of my selections.”


    “I love Chuck's F.A.S.T. Graphs™! Well worth the price of admission for what he gives you.”


    "Chuck - Thank you for your well thought out articles. I tend to be a visual type of person so I really appreciate the F.A.S.T. Graphs™ approach."


    "Great article, as always! I always look forward to your articles, and am especially eagerly awaiting your next in this series. I find the F.A.S.T. Graphs™ extremely helpful."


    “Your F.A.S.T. Graphs™ put all of this in a single artful picture and the accompanying spreadsheets hammer home the point.”


    “I use the F.A.S.T. Graphs™ method to evaluate all of my ideas. I recommend it for individual investors, since it helps them focus on data and get past the many emotional arguments.”


    “I recently subscribed to the F.A.S.T. Graphs™, and these articles are helping me learn how to better use them. They really do give you a good quick look at the valuations picture. A much needed tool!”


    “I also always appreciate the clear-cut information provided through your F.A.S.T. Graphs™ and articles.”


    “Thanks, Chuck, for your F.A.S.T. Graphs™. Each of these graphs is worth 1,000 words in describing a company's growth, consistency and valuation. Thanks for sharing your graphs.”


    “Thanks, Chuck. Love the F.A.S.T. Graphs™! It makes investing so much more clear.”


    “Chuck's F.A.S.T. Graphs™: They are invaluable to me in making decisions about the stocks I own (in addition to what you are saying about doing other research) and the ones I hope to own in the future.”


    ”I am amazed at the usefulness of your F.A.S.T. Graphs™ and I plan on using them for a long time to come.”


    “Chuck's F.A.S.T. Graphs™ will give you a tool to find those well chosen stocks...”


    “Thanks for the F.A.S.T. Graphs™, Chuck. They are the best tool I've used.”