Despite market volatility, the tech industry has been performing well this year. The Nasdaq Composite has gained 11.5% year-to-date, and its performance is a good indicator of the overall health of the tech sector.
Hence, I think quality tech stocks Nokia Oyj (NOK) and AudioCodes Ltd. (AUDC) might be ideal investments for solid returns in March 2023.
The tech industry is increasingly expanding in healthcare, real estate, manufacturing, and retail sectors to counter macroeconomic pressures and take advantage of new growth opportunities.
The global information technology market is expected to grow at a CAGR of 8.2% to $8.85 trillion this year.
Additionally, the ability of AI to significantly speed up and improve other technologies, such as robotics, quantum computing, and IoT, is leading to widespread expansion.
According to GlobalData’s 2023 TMT Predictions, the artificial intelligence industry will rise 12% from 2022 to $93 billion by this year.
Moreover, the advancements in the global communication network, especially the deployment of 5G infrastructure, are expected to fuel the growth of emerging technologies such as the Internet of Things (IoT), virtual reality (VR), and augmented reality (AR). The global telecom services market size is expected to grow at a CAGR of 6.2% until 2030.
Take a detailed look at the stocks mentioned above:
Nokia Oyj (NOK)
Headquartered in Espoo, Finland, NOK provides mobile, fixed, and cloud network solutions worldwide. The company operates in four segments: Network Infrastructure; Mobile Networks; Cloud and Network Services; and Nokia Technologies.
On March 7, NOK announced that its Converged Charging software solution had been selected by Hrvatski Telekom to help the Croatian operator modernize on-line charging and better harness network monetization opportunities that can unlock new revenue streams.
On the same day, NOK announced that Hrvatski Telekom had chosen its Converged Charging software solution to enable the Croatian operator to improve on-line charging and better harness network monetization potential that can generate new income streams.
The expansion of the collaboration with Hrvatski Telecom underlines NOK’s capacity to supply its clients with dependable and effective solutions, which should assist in boosting its brand reputation and market position.
NOK’s trailing-12-month EBITDA margin of 14.62% is 48.2% higher than the 9.9% industry average. Its trailing-12-month net income margin of 17.06% is 530.1% higher than the 2.71% industry average. Its trailing-12-month EBIT margin of 10.95% is 135.5% higher than the 4.65% industry average.
NOK pays $0.08 annually as dividends which translates to a yield of 1.85% at the current price. Its 4-year average dividend yield is 1.13%.
NOK’s net sales increased 16.1% year-over-year to €7.45 billion ($8.05 billion) in the fiscal fourth quarter, which ended December 31, 2022. Its gross margin increased 25.8% year-over-year to €3.19 billion ($3.45 billion). Also, profit for the period increased 363.5% year-over-year to €3.15 billion ($3.40 billion), while its earnings per share increased 366.7% year-over-year to €0.56.
NOK’s revenue is expected to rise 9.5% year-over-year to $6.15 billion for the current quarter ending March 2023. The company’s EPS for the same quarter is expected to increase 10.9% year-over-year to $0.08. Additionally, the stock has topped consensus revenue estimates in each of the trailing four quarters, which is impressive.
The stock has gained 3.4% over the past six months to close the last trading session at $4.59.
NOK’s POWR Ratings reflect its promising outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
NOK also has an A grade for Value and a B for Growth and Sentiment. It is ranked #4 out of 49 stocks in the B-rated Technology- Communication/Networking industry.
To access additional ratings for NOK’s Stability, Quality, and Momentum, click here.
AudioCodes Ltd. (AUDC)
Headquartered in Lod, Israel, AUDC vides advanced communications software, products, and productivity solutions for the digital workplace. The company offers solutions, products, and services for unified communications, contact centers, VoiceAI business line, and service provider business.
AUDC’s trailing-12-month EBITDA margin of 12.47% is 26.4% higher than the 9.87% industry average. Its trailing-12-month gross profit margin of 64.99% is 29.5% higher than the 50.17% industry average. Its trailing-12-month EBIT margin of 11.38% is 144.8% higher than the 4.65% industry average.
AUDC pays $0.36 annually as dividends which translates to a yield of 2.51% at the current price. Its 4-year average dividend yield is 1.26%. Its dividend has grown at a CAGR of 12.9% over the past three years.
AUDC’s total revenues increased 6.9% to $70.66 million in the fourth quarter that ended December 31, 2022. Also, its gross profit increased 3.9% year-over-year to $46.16 million, and its net income increased 4.1% year-over-year to $7.55 million. Its earnings per share increased 4.5% year-over-year to $0.23.
AUDC’s revenue is expected to rise marginally year-over-year to $66.88 million for the fiscal first quarter ending March 2023. The company’s EPS for the same quarter is expected to be $0.27.
AUDC declined 1.1% intraday to close its last trading session at $14.32.
AUDC’s POWR Ratings reflect its robust outlook. The stock has an overall rating of A, which translates to a Strong Buy in our proprietary rating system.
AUDC also has an A grade for Quality and a B for Value and Stability. It is ranked #5 in the same industry.
For additional ratings for AUDC’s Growth, Momentum, and Sentiment, click here.
Consider This Before Placing Your Next Trade…
We are still in the midst of a bear market.
Yes, some special stocks may go up like the ones discussed in this article. But most will tumble as the bear market claws ever lower this year.
That is why you need to discover the “REVISED: 2023 Stock Market Outlook” that was just created by 40 year investment veteran Steve Reitmeister. There he explains:
- 5 Warnings Signs the Bear Returns Starting Now!
- Banking Crisis Concerns Another Nail in the Coffin
- How Low Will Stocks Go?
- 7 Timely Trades to Profit on the Way Down
- Plan to Bottom Fish For Next Bull Market
- 2 Trades with 100%+ Upside Potential as New Bull Emerges
- And Much More!
You owe it to yourself to watch this timely presentation before placing your next trade.
REVISED: 2023 Stock Market Outlook >
NOK shares were trading at $4.66 per share on Thursday morning, up $0.07 (+1.53%). Year-to-date, NOK has gained 0.73%, versus a 4.06% rise in the benchmark S&P 500 index during the same period.
About the Author: Nidhi Agarwal
Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities.
2 Best-Performing Tech Stocks in March 2023 StockNews.com
