3 Huge Tech Stocks Highlight UBS Quality Growth at a Reasonable Price 2016 List

Technology

Published: February 1, 2016 8:25 am

Last Updated: January 13, 2020 1:50 pm

We always like to present stock ideas from the top firms that 24/7 Wall St. covers on Wall Street with an eye toward solid value. Chasing the proverbial high-flyers can often be a lesson in pain for investors. The UBS Quality Growth at a Reasonable Price (Q-GARP) portfolio has always had companies that feature:

Quality metrics: high and stable profitability
Growth: high expected earnings growth
Valuation: low valuation relative to peers

The portfolio has outperformed the S&P 500 benchmark substantially since inception.

We screened the first 2016 report from the portfolio managers and analysts with an eye toward the technology stocks in the portfolio. After a horrible January that was somewhat helped by a late in the month rally, tech stocks that are included look very solid for investors who have a somewhat higher risk tolerance.

Alphabet

The technology giant is a top pick at UBS for 2016, and it reports earnings after the close Monday. Alphabet Inc. (NASDAQ: GOOGL), through its subsidiaries, builds technology products and provides services to organize information.

The company offers Google Search, which provides information online; Google Now offers information to users when they need it; AdWords is an auction-based advertising program; AdSense enables websites that are part of the Google network to deliver ads; DoubleClick Ad Exchange is a marketplace for the trading display ad space; and other advertising platforms include AdExchange and AdMob.

The company also provides YouTube, which offers video, interactive and other ad formats; Android, an open source mobile software platform; hardware products such as Chromebook, Chrome OS devices, Chromecast and Nexus devices; Google Play, a cloud-based digital entertainment store for apps, music, books and movies; Google Drive, a place for users to create, share, collaborate and keep their stuff; and Google Wallet, a virtual wallet for in-store contactless payments.