Tech Stocks to Buy Not Called Facebook or Apple
Erin is a member of The Motley Fool Blog Network -- entries represent the personal opinions of our bloggers and are not formally edited.
Tired of talking about Apple and Facebook? Turns out there are other tech stocks that deserve some attention.
Online real estate website Zillow (NASDAQ: Z) is still new to the exchange. Having only gone public in the summer of 2011, the stock has done extremely well in its first partial year. Launched in 2005, Zillow maintains a database of 100 million U.S. homes, giving consumers access to the selling prices and estimated market values of their homes and those of their neighbors. The firm generates income from the property listings and advertising from real estate agents and property owners. The company enjoys a partnership with Yahoo! Real Estate, as well as other high-profile websites. Zillow entered the mobile market with a tool to help home buyers when they are out on the road looking at real estate. As the economy continues to improve, and the home building industry improves, more consumers will turn to this website that has set itself as a must-use tool in home buying. The company has not yet turned a profit, but it has seen rapid growth. Investors looking for an early-in to a growing, promising company, should consider the possibilities with Zillow.
Rackspace Holdings (NYSE: RAX) may not be a household name for consumers, but it is very well-known to the programmers and administrators who make servers and websites work. The company is a major player in the hosting and cloud computing industry, the invisible resources that keeps the internet alive. The company’s stock has increased 34% in the last 12 months, and is outperforming the S&P 500 by a considerable amount (see chart). Over 2011, Rackspace Hosting brought in $100.6 million cash, for a net income of $56.7 million. The company will release fourth-quarter and 2011 year-end results on Monday. Look for improved cash flow, increased share profits, and for them to continue to beat the S&P 500.
Qualcomm Inc. (NASDAQ: QCOM) stock is currently at $61.60, trending high at the top of its 52-week range. The company reported a record high first quarter for fiscal 2012. Why are things so rosy at Qualcomm? Good product roll out internationally, staying on top of the emerging smartphone markets, excellent management, and the company’s relationship with Apple (dang it, there goes the theory that a tech stock review didn’t have to include Apple). Without question, Qualcomm is recognized as a leader in the smartphone industry. Because of these factors, Qualcomm’s net income was up 20% year over year, the stock price has increased an impressive 33% for the last six months.
These tech companies might not be the talk of the town, but they are worth a look for your portfolio.
Motley Fool newsletter services recommend Rackspace Hosting and Zillow. The Motley Fool owns shares of Qualcomm and Rackspace Hosting. ErinAnnie has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
