As a growth investor, I place a priority on stocks that are
growing sales and earnings dramatically. Frequently, this means
focusing on innovative tech stocks because these are the
companies that have the potential to really see a surge in sales.
Sluggish conglomerates and financials just can't match the
Two tech stocks I'm bullish on right now are
Cognizant Technology Solutions Corp.
). Both companies just reported dramatic earnings this week, and
have bright futures.
Cognizant Technology Solutions Corp
) is a member of my
Blue Chip Growth
newsletter's Buy List
. Cognizant is a leading IT firm that provides a wide array of
data and software services to businesses around the world. It
offers its services to all manner of businesses, including
financial services, health care, manufacturing and logistics,
retail, telecommunications and the media. The company enjoys big
margins because most of Cognizant Tech's software development
centers and employees are located in India, although it has other
development facilities in Argentina, China, Hungary and even a
small operation in the U.S.
Cognizant just reported earnings on Aug. 4 and said that for
the second quarter it earned $172.2 million, or $0.56 per share,
compared with $141.3 million, or $0.47 per share, for the same
period in 2009. Analysts had expected earnings per share of $0.52
per share, resulting in an 8.3% earnings surprise. The IT company
also said that its second-quarter sales spiked 42% to $1.11
billion, beating the average forecast of $1.02 billion. The
company's forecast for its third quarter remained upbeat.
Cognizant said it expects earnings of at least $0.59 per share
and revenue of $1.18 billion. Analysts are forecasting $0.54 per
share on earnings of $1.06 billion.
Lastly, Cognizant raised its year-end forecast. The company
predicted earnings of at least $2.26 per share with sales of at
least $4.46 billion. That's up from a previous estimate of at
least $2.10 per share and sales of at least $4.1 billion.
Analysts expect $2.13 per share on sales of $4.14 billion.
Cognizant has increased more than +35% since January 1, and is
providing big profits to investors.
Another great tech stock to buy after earnings is
), a pretty famous online travel discounter that boasts William
Shatner as its pitchman. Priceline also reported earnings August
4, and posted a stunning 71% surge in second-quarter net income
as a result of increased travel bookings. The company said global
hotel reservations notched the biggest gain, increasing a
whopping 48% compared with the same period last year.
Priceline said that it earned $115 million, or $2.26 per
share, in the second quarter. That is an increase of more than
70% from last year's net income of $67.1 million, or $1.38 per
share. Excluding one-time items, the company's adjusted income
totaled $158.2 million or $3.09 per share. Analysts had expected
the company to earn $2.65 per share for the quarter on sales of
$733 million, resulting in a 16.7% earnings surprise.
Sales climbed 27% to $767.4 million from $603.7 million last
year, with international operations contributing $322.6 million,
up 63% versus a year ago. Priceline said that bookings in the
second quarter were $3.4 billion, an increase of 43% compared
with last year. The company's May acquisition of international
car hire service TravelJigsaw contributed $43.9 million to
quarterly gross travel bookings.
The company is forecasting third-quarter net income of $4.06
to $4.26. That compares with analysts' average estimates of $4.18
per share. Priceline.com has increased more than +30% so far in
2010 and boasts a bright future.
As of this writing, Louis Navellier was recommending shares
of both PCLN and CTSH to subscribers of his
Blue Chip Growth newsletter
5 Small Cap Stocks to Buy Now
- Small, innovative companies are watching their earnings
explode - and they are the next ten-baggers. Investing pro
Louis Navellier reveals his secrets to identifying these small
cap innovators, plus five of his favorite small cap stocks -
download your FREE profit guide here.