Even after the recent pullback, major market indexes are still trading near historical highs, and some stocks are starting to look a bit pricey. However, investors willing to do their homework and search below the surface can always find attractively valued companies for their portfolios. These three tech leaders offer compelling valuations an
Apple Inc. (NASDAQ:AAPL)
Apple Inc. (NASDAQ:AAPL) has been facing increased competition from Samsung and other low cost manufacturers over the last quarters, and this has caused a slowdown in the company´s growth rates. But the Cupertino giant is expected to launch its new iPhone on September 10, and it may also announce a new lower priced model to gain competitiveness in emerging markets.
New product categories like a revamped Apple TV or a smart watch have long been rumored, CFO Peter Oppenheimer said in the last conference call that Apple Inc. (NASDAQ:AAPL) is “on track to have a very busy fall,” and that the company will reveal more in October, when it reports results for its fiscal fourth quarter. It’s not only words, research and development expenditures increased by 34.5% to $1.18 billion in the last quarter, so the company seems to be stepping up its efforts to bring new products to the market.
Apple Inc. (NASDAQ:AAPL) accelerated its buyback program in the last quarter; the company repurchased an impressive $16 billion in buybacks and the stock yields 2.4% in dividends. At a P/E ratio of 12.5, earnings deceleration is already priced into Apple Inc. (NASDAQ:AAPL), and the stock is offering plenty of upside if new product launches reignite growth and prove to investors that the company can still bring successful and innovative products to the market.
Trust and reliability are key competitive advantages in the IT industry, and International Business Machines Corp. (NYSE:IBM) stands above the competition due to its product depth, global reach, and long term trajectory. International Business Machines Corp. (NYSE:IBM) is the second most valuable brand in the world according to Interbrand, and it’s in the fifth position in Fortune’s ranking of the most respected companies in the world.
International Business Machines Corp. (NYSE:IBM) has been around for more than 100 years and counts each of the Fortune 2000 companies as clients. The company has operations in more than 170 counties, and it offers a breath of products and services unmatched by the competition. So when a global corporation wants to make sure that its IT solution is not only reliable, but can also be expanded both in terms of services and global integration, International Business Machines Corp. (NYSE:IBM) is the most likely way to go.
International Business Machines Corp. (NYSE:IBM) will need to adapt to the cloud computing parade and the rise of smaller, more dynamic, competitors. Size can be a limitation when it comes to growth, and so is lackluster corporate spending in the current economic environment. But International Business Machines Corp. (NYSE:IBM) has successfully gone through challenging conditions in the past, and there is no reason to believe it can´t continue thriving for years to come.