Electrical Miscellaneous Services Stocks in the US to Look Out For
Rahul is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Technology and Electronic Miscellaneous Services providers today are in a way backbones to big companies and industries. From securing information, to analysis of complex data and saving costs while also speeding up processes, these providers help the efficiencies and bottom-lines in the economic-sphere in immense ways. I talk in this article about 3 stocks in the sector, and which are positioned as small & medium cap. They are Sypris Solutions, Inc. (NASDAQ: SYPR), Black Box Corp. (NASDAQ: BBOX), and Jack Henry & Associates Inc. (NASDAQ: JKHY) .
Sypris Solutions
Founded in 1954 and headquartered in Louisville, Kentucky, Sypris Solutions, Inc. is a provider of outsourced services and specialty products primarily in the United States, Mexico, and Denmark. It's offerings span manufacturing, engineering, design, and other technical services under contracts with corporations and government agencies primarily in the markets for industrial manufacturing, and aerospace and defense electronics. Core business revolves around 'security.'
SYPR's strategic partnership with BlackRidge Technology (a supplier of Identity Aware Networking solutions) will focus on breakthroughs in identity authentication and endpoint authorization solutions for the public and private sectors. BlackRidge’s 'TAC' allows identity to be communicated and interpreted within the network fabric itself, enabling strong authentication, authorization and Identity-based network policy enforcement. TAC, combined with Sypris’s endpoint authentication technology and high assurance key management, will create a secure and robust network defense solution, giving government customers an unparalleled level of protection.
The company's strengths are to be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. Further, these strengths clearly outweigh the fact that the company trails with a weak operating cash flow. Fundamentals and returns have been above the Aerospace & Defense Industry and S&P benchmarks over a long period of time, rightfully attracting trustworthiness in the affairs of the company's running.
SYPR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
Black Box Corp
Black Box Corporation, headquartered in Lawrence, Pennsylvania, was founded in 1973. Operating as a communications system integrator worldwide, this company engages in designing, sourcing, implementing, and maintaining communications solutions. BBOX's offierings include voice communications solutions, technology product solutions, premise cabling, and other data-related services solutions as well as technical services ranging from quick-turn technology products consultation to site surveys, design and engineering, project management, single-site and multi-site installations, remote monitoring, and certification and maintenance of voice, data, and integrated communication solutions.
Black Box's products and valuable services help its clients get the most from their technology investments while ensuring their infrastructure supports their business goals.
Customers for its products and services are small organizations, corporations, and institutions and the sales are made through its catalogs, on-site services offices, and internet web site.
Its client-focused business model with an intense commitment to value and client satisfaction has already earned BBOX a prestigious 31st place by CRN-Magazine in its Solution Provider 500 List. This annual list, previously called the VAR 500, includes the largest integrators, service providers and IT consultants in North America, ranked by their solution provider services revenue. Black Box services more than 175,000 clients in approximately 150 countries with approximately 200 offices throughout the world.
Its earnings announcement is due on 31st July, 2012. The accounts receivable and the days sales outstanding analysis shows that the company holds potential to pass this critical time and be able to inch up later. This is a good stock to enter-now and hold medium to long term.
Jack Henry & Associates
Jack Henry & Associates, Inc. is a Monett, Missouri based provider of integrated computer systems and services for in-house as well as outsourced data processing to commercial banks, credit unions, and other financial institutions primarily in the United States. Having a strategic relationship with IBM Corporation, JKHY was founded in 1969 and currently engages in transaction-processing, business processes automation, and information services management.
Its division, Jack Henry Banking, is a leading provider of integrated computer systems for banks ranging from de novo to mid-tier institutions, and currently serves approximately 1,500 banks as a single source for integrated, enterprise-wide automation and as a single point of contact and support. Major market-trusted brands / product-groups of JHB division are Symitar™, ProfitStars®, iPay Technologies™.
Some recent boosting news about JKHY worth noting and pondering:
A] Farm Credit Services of Mid-America, the $18 billion agricultural lending cooperative serving more than 95,000 farmers, agribusinesses, and rural residents with various farm loans or other ag-related financing options, recently selected Jack Henry's PROFITstar® ALM Reporting Service.
B] PROFITstar® was also honored among a global field of top Microsoft-partners for demonstrating excellence in innovation and implementation of customer solutions based on Microsoft technology by way of the 2012 Microsoft® ISV-Windows® Azure Partner of the Year Award.
C] Its Gladiator NetTeller® Enterprise Security Monitoring™ (ESM) solution has already been embraced by 100 banks to help themselseves combat fraud since the FFIEC Authentication Guidance Supplement deadline was issued in June 2011.
D] First Command Bank has selected JKHY's SilverLake System® core processing system to provide enterprise-wide automation, besides also choosing the company's various complementary products and services.
E] Symitar® recently crossed more than 100 clients who now process on a hosted version of its two core systems via its OutLink Data Center™ offering.
A valentine of the 'insiders', this stock has maintained its strong upward momentum, trading within 5% of its 52-week high.
Under the stress-test of DuPont financial analysis, JKHY proves its ability to seeing positive trends in the sources of its increasing profitability. It can be seen through this analysis that the company is portraying an Increasing ROE, along with Decreasing Leverage, Improving Asset Use Efficiency and an Improving Net Profit Margin.
A very good company with great fundamentals and strategic advantages, JKHY is a very good value stock to invest in and grow with.
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