Zacks Investment Ideas feature highlights: Jabil Inc., Salesforce and NetEase
For Immediate Release
Chicago, IL – January 24, 2023 – Today, Zacks Investment Ideas feature highlights Jabil Inc. JBL, Salesforce CRM and NetEase NTES.
These 3 Tech Stocks Are Already +15% in 2023
After a rough showing last year, technology stocks have busted out of the gate strong in 2023, undoubtedly a welcomed development among investors.
A hawkish Fed, geopolitical uncertainties, and inflation all contributed to the sector's poor performance, with investors facing volatility throughout the year.
However, with sentiment shifting following better-than-expected economic data, buyers have finally returned after a long hibernation.
Three technology stocks – Jabil Inc.,Salesforce and NetEase – have stopped for nobody so far in 2023, all up more than 15% year-to-date.
In addition, all three have seen their earnings outlooks drift higher as of late, providing the fuel shares need to continue their runs. Let's take a closer look at each one.
Jabil provides electronic manufacturing services and solutions to its customers, currently boasting a Zacks Rank #2 (Buy).
The company's latest quarterly release on December 15th has helped lift shares; JBL exceeded the Zacks Consensus EPS Estimate by nearly 5% and reported revenue 4% above expectations thanks to the strong execution of its operational plans.
In fact, it was the company's fifth consecutive quarter of exceeding both earnings and revenue estimates.
Further, JBL shares provide exposure to technology paired with an income stream; JBL pays a modest dividend, currently yielding 0.4% with a sustainable payout ratio sitting at 5% of its earnings.
Salesforce is the leading provider of on-demand Customer Relationship Management (CRM) software, enabling organizations to better manage critical operations.
Activists have been circling CRM recently, pushing for the company to improve its margins which has provided a big boost for shares.
Analysts have upped their outlook across all timeframes as of late, landing Salesforce into a Zacks Rank #2 (Buy).
Following the challenging price action in 2022, CRM's valuation multiples have taken a step back; the company's forward price-to-sales ratio sits at 4.9X, well beneath the 7.8X five-year median and steep highs of 9.5X in 2022.
NetEase is a Chinese internet technology company engaged in the development of applications, services, and other technologies. Presently, NTES is a Zacks Rank #2 (Buy).
Similar to JBL, NetEase rewards its shareholders via its annual dividend that currently yields 1.9%, nicely above the Zacks Computer and Technology sector average.
Notably, NetEase's payout has grown by more than 30% over the last five years.
NetEase reported strong results in its latest quarter, exceeding the Zacks Consensus EPS Estimate by a sizable 42% and reporting revenue modestly ahead of expectations.
Impressively, the average EPS beat across its last four releases is 34%. As we can see in the chart below, investors certainly cheered on the latest quarterly release.
With sentiment slowly shifting following some better-than-expected economic data, buyers are finally revisiting technology stocks.
Of course, nobody has a magic crystal ball that tells us where the sector heads next, but we're certainly off to a far better start compared to 2022.
All three stocks above from the Zacks Computer and Technology Sector – Jabil, Salesforce and NetEase – have been no exception to the sector's great start, all up more than 15% year-to-date.
In addition, all three have seen their earnings outlooks drift higher as of late, providing the cherry on top.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Salesforce Inc. (CRM) : Free Stock Analysis Report
Jabil, Inc. (JBL) : Free Stock Analysis Report
NetEase, Inc. (NTES) : Free Stock Analysis Report
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