{"id":106399,"date":"2017-05-24T10:14:00","date_gmt":"2017-05-24T14:14:00","guid":{"rendered":"http:\/\/countingpips.com\/?p=106399"},"modified":"2017-05-24T07:14:26","modified_gmt":"2017-05-24T11:14:26","slug":"stock-wars-revenge-of-the-tech","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/05\/stock-wars-revenge-of-the-tech\/","title":{"rendered":"STOCK WARS: Revenge of the Tech"},"content":{"rendered":"<div id=\"inves-1511218387\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">May 24, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p>By <a href=\"http:\/\/WallStreetDaily.com\/\"><u>WallStreetDaily.com<\/u><\/a> <img loading=\"lazy\" decoding=\"async\" class=\"attachment-home-th size-home-th wp-post-image\" style=\"display: block; margin-bottom: 5px; clear: both;\" src=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/05\/0517_tech_feature.jpg\" sizes=\"auto, (max-width: 580px) 100vw, 580px\" srcset=\"https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/05\/0517_tech_feature.jpg 580w, https:\/\/s3.amazonaws.com\/wallstreetdailywebsite\/wp-content\/uploads\/2017\/05\/0517_tech_feature-300x155.jpg 300w\" alt=\"STOCK WARS: Revenge of the Tech\" width=\"580\" height=\"300\" \/><\/p>\n<ul>\n<li>Tech stocks dropped 3% following Trump\u2019s election.<\/li>\n<li>73% of tech stocks beat analyst earnings estimates.<\/li>\n<li>A new way to play tech\u2019s comeback.<\/li>\n<li><strong><a href=\"https:\/\/pro.agorafinancial.com\/m\/682290\" target=\"_blank\" rel=\"noopener noreferrer\">Also recommended: Deep-sea killing machines rattle U.S. military officials.<\/a><\/strong><\/li>\n<\/ul>\n<hr \/>\n<p><img decoding=\"async\" style=\"float: left; max-width: 85px;\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-louis-basenese.jpg\" alt=\"Louis Basenese\" \/>Dear <em>Wall Street Daily<\/em> Reader,<\/p>\n<p>As you may know, earnings season officially came to a close last week with a quarterly report from Wal-Mart Stores Inc.<\/p>\n<p>And it\u2019s now clear that American companies \u2014 and investors \u2014 have plenty to get excited about.<\/p>\n<p>According to Bespoke Investment Group, 61% of companies beat analyst estimates for earnings \u2014 right in line with the historical average.<\/p>\n<p>But more importantly, 63% of companies have beat top-line estimates this season. At this pace, this quarter could see the largest revenue beat rate since Q4 2014.<\/p><div id=\"inves-2462833778\" class=\"inves-in-content inves-entity-placement\"><hr style=\"border: 1px solid #ddd;\">\r\n<div id=\"inpost_ads_header\">\r\n<p style=\"font-size:10px; float:left; color:#666;\">Free Reports:<\/p><\/div>\r\n<div id=\"inpost_ads\"> \r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/1ApBOV\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2018\/06\/graph_techs_PD.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t     <a href=\"https:\/\/goo.gl\/1ApBOV\"><b><u>Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p><br><br>\r\n<br>\r\n<br>\r\n<p style=\"font-size:15px; float:left;\"><a href=\"https:\/\/goo.gl\/f3RrHX\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/investmacro.com\/wp-content\/uploads\/2019\/01\/cot_pie_80.png\" align=\"left\" width=\"80\"  height=\"55\"\/><\/a>\r\n\t    <a href=\"https:\/\/goo.gl\/f3RrHX\"><b><u>Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p><br><br>\r\n<\/div>\r\n<hr style=\"border: 1px solid #ddd;\">\r\n<br><\/div>\n<p>And as Jonathan Rodriguez points out, one sector is leaving the rest of the market in the dust\u2026<\/p>\n<p>Ahead of the tape,<\/p>\n<p>Louis Basenese<br \/>\nChief Investment Strategist, <em>Wall Street Daily<\/em><\/p>\n<hr \/>\n<p class=\"headline\">Time to Stack Your Deck With Tech Stocks<\/p>\n<p><img decoding=\"async\" style=\"float: left; max-width: 85px;\" src=\"https:\/\/duip7hn7nchpo.cloudfront.net\/editor-circle-jonathan-rodriguez.jpg\" alt=\"Jonathan Rodriguez\" \/>What a difference six months make\u2026<\/p>\n<p>On Nov. 9, the day after Donald Trump was elected president, the stock market exploded.<\/p>\n<p>The Dow added 257 points after diving nearly 900 points overnight.<\/p>\n<p>And on hopes of tax cuts, infrastructure spending and industry deregulation, the market\u2019s biggest laggards quickly became the stars of 2016: financials, materials and health care stocks.<\/p>\n<p>Furthermore, the market\u2019s strongest sector by far \u2014 technology \u2014 fell 3% in the week after the election, while the S&amp;P 500 rose 2%.<\/p>\n<p>It was quite a reversal.<\/p>\n<p>But as this earnings season \u2014 the first of Trump\u2019s presidency \u2014 has proved so far to investors, it doesn\u2019t always pay to jump the gun\u2026<\/p>\n<p>According to data from the number crunchers at Bespoke Investment Group, 73% of tech stocks beat analyst earnings estimates.<\/p>\n<p>That\u2019s eight percentage points higher than the current beat rate for all stocks (65%).<\/p>\n<p>And FactSet notes that 72% of tech firms in the S&amp;P 500 beat revenue estimates, too.<\/p>\n<p>These results have investors thinking twice about running for the exits on tech\u2026<\/p>\n<p class=\"subhead\">Sellers Remorse?<\/p>\n<p>Since the start of the year, XLK \u2014 the ETF that tracks large-cap tech stocks \u2014 is up 14%. That\u2019s twice the gain of the S&amp;P 500 over the same period.<\/p>\n<p>What about the \u201cTrump trade\u201d darlings of late 2016?<\/p>\n<p>Not so hot\u2026<\/p>\n<p>Health care names have gained 10% on the year. But materials have gained 5%, and financials are up less than 1%.<\/p>\n<p>While it\u2019s true that many individual tech stocks sport hefty valuations, the tech sector at large trades at just 18 times forward earnings \u2014 25% below the S&amp;P.<\/p>\n<p>And with billions in cash on hand, tech firms will continue to reward shareholders with buybacks, dividends and takeovers that supercharge growth.<\/p>\n<p>Better still, if you were one of the hasty investors who dumped their tech stocks for Trump trade stocks\u2026 you\u2019re in luck.<\/p>\n<p>Here\u2019s a small-cap tech name that could help supercharge your 2017 returns\u2026<\/p>\n<p class=\"subhead\">Cleaning up Shop<\/p>\n<p>Ultra Clean Holdings Inc. (NASDAQ: UCTT) is a tech firm that specializes in manufacturing semiconductor capital equipment.<\/p>\n<p>Put simply, Ultra Clean makes the machines that tech device-makers use to craft semiconductor components for their products.<\/p>\n<p>And though the company is a rising star in the semiconductor manufacturing space, Ultra Clean is still one of the smallest \u2014 boasting a market cap of just $750 million.<\/p>\n<p>After a prolonged downturn in the semiconductor industry, business is now booming\u2026<\/p>\n<p>The company booked $205 million in revenue in the first quarter \u2014 a 69% increase from the same period last year.<\/p>\n<p>For the full fiscal year 2016, sales rose 20% from the previous year, to $563 million.<\/p>\n<p>Management reported adjusted earnings of 47 cents, versus analyst estimates of 42 cents. That represents an upside surprise of 12%.<\/p>\n<p>Ultra Clean trades at 0.9 enterprise value to sales \u2014 a 74% discount to the peer average.<\/p>\n<p>Shares also trade at 11.8 times forward earnings \u2014 a 41% discount to the industry (19.9) and 62% below tech stocks overall (30.9).<\/p>\n<p>And fiscal 2017 earnings are forecast to nearly triple from last year.<\/p>\n<p>In fact, the stock could easily add another 10% through the end of the year simply by applying the stock\u2019s five-year P\/E multiple (13.3) to full-year earnings.<\/p>\n<p>Over the last year, shares have soared to an all-time high as Ultra Clean\u2019s fundamentals improve.<\/p>\n<p>The stock is up 309% over the last year. That\u2019s eight times small-cap tech stocks and 13 times the rise of the S&amp;P 600.<\/p>\n<p>In short, the company is on fantastic financial footing, and the stock is in a solid uptrend.<\/p>\n<p>Bottom line: Tech stocks are primed to soar this year as earnings improve and investors rush to buy back shares they sold off after the election. And Ultra Clean represents one of the sector\u2019s hottest momentum stocks, backed by a rock-solid balance sheet.<\/p>\n<p>On the hunt,<\/p>\n<p>Jonathan Rodriguez<br \/>\nSenior Analyst, <i>Wall Street Daily <\/i><\/p>\n<p>The post <a href=\"https:\/\/www.wallstreetdaily.com\/2017\/05\/24\/stock-wars-revenge-tech\/\" rel=\"nofollow\">STOCK WARS: Revenge of the Tech<\/a> appeared first on <a href=\"https:\/\/www.wallstreetdaily.com\" rel=\"nofollow\">Wall Street Daily<\/a>.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By WallStreetDaily.com Tech stocks dropped 3% following Trump\u2019s election. 73% of tech stocks beat analyst earnings estimates. A new way to play tech\u2019s comeback. Also recommended: Deep-sea killing machines rattle U.S. military officials. Dear Wall Street Daily Reader, As you may know, earnings season officially came to a close last week with a quarterly report [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-106399","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/106399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=106399"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/106399\/revisions"}],"predecessor-version":[{"id":106410,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/106399\/revisions\/106410"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=106399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=106399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=106399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}