The Technology sector has been a favorite among investors, providing explosive gains. Growth-styled investors have been particularly rewarded by the sector over the last year amid positive sentiment, with the beloved ‘Mag 7’ group stealing headlines all throughout the period.
Still, the group certainly isn’t the only bright spot within the Technology sector currently, with many other companies, including Pinterest PINS, TE Connectivity TEL, and NICE Ltd. NICE, boasting bright outlooks.
On top of solid forecasted growth, all three sport a favorable Zacks Rank, reflecting optimism among analysts. Let’s take a closer look at each.
NICE
NICE specializes in customer relations management software, artificial intelligence, digital, and workforce engagement management. Analysts have bumped their earnings expectations higher across all timeframes, helping land the stock into a favorable Zacks Rank #2 (Buy).
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The company is coming off a strong quarterly release, with Cloud revenue growing 20% year-over-year and EPS climbing 16% from the year-ago period. NICE’s top line has continued to expand nicely, with its leading-edge AI and unique data assets improving its cloud win rates.
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Shares trade at elevated valuation multiples but are currently cheap on a relative basis, with the current 23.9X forward earnings multiple (F1) well beneath the 35.9X five-year median and comparing favorably to the Zacks Internet – Software industry average of 38.5X.
TE Connectivity
TE Connectivity, a current Zacks Rank #2 (Buy), manufactures and designs products that connect and protect the flow of power and data inside millions of products used by consumers and industries. On top of technology exposure, shares pay a dividend, currently yielding 1.6% annually.
Dividend growth is also apparent, with TEL carrying a 6.5% five-year annualized dividend growth rate.
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Share performance has been supported by better-than-expected quarterly results, with TEL recently delivering a 7% beat relative to the Zacks Consensus EPS estimate. Analysts raised their earnings expectations for its current fiscal year following the release, with the $12.31 per share consensus estimate suggesting year-over-year growth of 12%.
Image Source: Zacks Investment Research
Pinterest provides a platform to show its users visual recommendations based on their personal tastes and interests, generating revenues by delivering ads on its website and mobile application. The company is a Zacks Rank #2 (Buy), with earnings expectations drifting higher across all timeframes.