Cisco Systems, Inc. (CSCO), Oracle Corporation (ORCL): 3 Technology Companies to Own Even When Market Corrects

With the upcoming Q3 2013 earnings report on March 20, 2013, where analysts are expecting an EPS of $0.66 with revenue of $9.38B, it is likely that Oracle will meet the high end of expectation and upcoming guidance should be on the positive end. Recovering data software spending may help the bottom line, while new software license and cloud subscriptions may improve the top line.

Qualcomm

The company has a market cap of $113 billion, and is currently trading at a P/E of 19.51 and a forward P/E of 13.29. The stock is near its 52-week high and analysts have a target price of $75.19, suggesting 15.73% upside potential. Fundamentally, Qualcomm has higher revenue growth, operating, and net margins, as well as stronger ROE than the industry average.

The company has a total cash of $13.28 billion, with a very small total debt of $31 million. Qualcomm generated solid cash flow of $6.19 billion, with a levered free cash flow of $4.37 billion. The company currently offers an annual dividend yield of 1.54%.

Buy, Sell, or Hold

With the recent share repurchase program of $5 billion and a 40% dividend increase, Qualcomm is returning more cash to its investors. With the launch of Snapdragon 800 and 600 in 2013, Qualcomm should continue to lead in the industry of wireless communication equipment, despite the catch up from Intel Corporation (NASDAQ:INTC). With the recent launch of Samsung’s Galaxy S4, Qualcomm’s quad-core Snapdragon application processor is expected to be used in the United States. All things considered, Qualcomm remains a solid long-term buy.

Note: Investors and traders are recommended to do their own due diligence and research before making any trading/investing decisions.

The article 3 Technology Companies to Own Even When Market Corrects originally appeared on Fool.com and is written by Nick Chiu.

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