5 Tech Stocks That Could Double In Price 10/22/11

 

Oracle Corp. ORCL 5 Tech Stocks That Could Double In Price Tech and internet stocks use to be all the rage; then the bubble burst. However, investors still look to this sector of the market to find the next big breakthrough and multi-bagger for their portfolio. Below are 5 stocks that could very well do just that.

Oracle Corp. (ORCL) – If an investor is looking for a good tech stock that issues a dividend, ORCL could be the stock their looking for. The company currently issues a dividend of $0.24 which only translates to a 0.77% yield, but if the earnings per share of $1.77 continues to grow, expect the dividend to grow with it. The company’s volatility is similar to the market at 1.07 over the last three years. Additionally, ORCL may be considered undervalued with a price to earnings ratio of 18.1 compared to the industry average of 20.0.

However, ORCL’s biggest competitor Microsoft (MSFT), has an even lower price to earnings ratio of 10.14. MSFT’s price and reputation was beaten down after it was accused of grossly overpaying for the voice program Skype. One of the reasons ORCL appears to be a Buy for many analysts could be the company’s strong position in Free Cash Flow.

Over the past year, ORCL generated over $12 million dollars while it had a net income of over $9 million. This type of cash advantage has helped ORCL have a current and quick ratio of 3.0 which is over the average for both the industry and S&P 500 as a whole. To continue reading, click here


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