Apps & Software

13 Technology Stocks To Outperform Apple (AAPL, AKAM, BIDU, BMC, CLS, GLW, EMC, JNPR, MRVL, MU, NTAP, STX, VRSN, WDC)

Akamai Technologies Inc. (NASDAQ: AKAM) $23.83
52-Week Range: $18.25 to $54.65
Price Target: $30.06
Implied upside: 26%
YTD Change: -49%
P/E Ratio: 14.7

Akamai is a company that may look like it is in trouble but the reality is that its growth rates are just slower than before. Akamai lost Netflix as a customer to a rival. The content delivery acceleration firm has a market value of $4.4 billion and customers include Apple, Amazon, NBC, ESPN, and other tech and media giants. Shares have stabilized since August after a long slide, and now the company is routinely mentioned (and then refuted) as a possible takeover candidate.

Baidu, Inc. (NASDAQ: BIDU) $132.37
52-Week Range: $94.33 to $165.96
Price Target: $188.61
Implied upside: 42%
YTD Change: 37%
P/E Ratio: 30

The “Google of China” has seen shares grow. That growth slowed in July of this year. Baidu has a market cap of about $46 billion. Now that Google has lost some of its business in mainland China, Baidu is the king of search in the People’s Republic. Valuations have always been high for Baildu, and the stock has always traded at a premium over peers. China’s ‘soft-landing’ economy is still set to foster massive growth for Baidu of close to 50% in sales and earnings in 2012.

BMC Software Inc. (NASDAQ: BMC) $38.64
52-Week Range: $35.57 to $56.55
Price Target: $50.00
Implied upside: 29%
YTD Change: -18%
P/E Ratio: 10.8

BMC Software is the Houston-based software and enterprise systems management company worth $6.8 billion in market cap. The firm, a cloud computing player, is not well known to most investors. The stock was hit hard from the July sell-off. Shares appear to have stabilized, and BMC has been considered a takeover target by many Wall Street technology observers. Earnings growth is roughly 10% on expected single-digit sales gains.

Celestica Inc. (NYSE: CLS) $8.33
52-Week Range: $6.79 to $12.48
Price Target: $10.95
Implied upside: 31%
YTD Change: -14%
P/E Ratio: 7.5

Celestica is in the often-overlooked field of outsourced manufacturing services.  It is considered one of the technology outsource destinations by many leading tech companies. While international technology manufacturers like Celestica  have fixed overhead, they always have reasonable revenue streams. They also have highly flexible facilities and workforces that can be cut or added to depending on the overall demand from major technology customer.  The industry in which Celestica operates is considered a slower growth sector of technology. Based on its financials, the company is a deep value play for many investors.

Corning Inc. (NYSE: GLW) $13.60
52-Week Range: $11.51 to $23.43
Price Target: $19.63
Implied upside: 44%
YTD Change: -29%
P/E Ratio: 6.9

Corning is the world’s leader in glass for smartphones, flat panel TVs, and PC Monitors, as well as other hi-tech glass operations. The company is worth more than $21 billion. Most important to shareholders is that it is aggressively buying back stock to retire shares and has recently increased its dividend. Unfortunately, it is facing weak TV and monitor demand for the rest of the year. If there is a true value stock in technology, Corning may be the best of among its rivals with a solid balance sheet. This is true even if its growth is currently slowing.

EMC Corporation (NYSE: EMC) $23.99
52-Week Range: $19.84 to $28.73
Price Target: $30.27
Implied upside: 26%
YTD Change: 4.76%
P/E Ratio: 14

EMC is the global leader of enterprise storage. The company recently said, as it announced earnings, that its government spending business was not really slowing, as some analysts had feared. Its market cap is nearly $50 billion. The storage leader is expected to grow sales and earnings by double digits in 2011 and in 2012. EMC also has a stake of about 85% or so in virtualization leader VMware Inc. (NYSE: VMW). It is worth noting that the stock has not actually hit its price target in the last five years. However,  it has massive cash balances and no real long-term debt to speak of.