The bull market is more than nine years old, and Wall Street seems to be increasingly divided by those who expect that to continue well into the future and others warning of impending calamity. The technology sector is seen as leading market momentum, and while there is no doubt that things have cooled off in the sector, expectations remain high for some of the biggest names.
In fact, analysts overall expect double-digit percentage growth, on both the top and bottom lines, for these six top tech companies, even though that represents a slowdown for some of them.
Facebook Inc. (NASDAQ: FB) is expected to have 22.2% EPS growth over the next five years, though that would be notable a slowdown from the more than 200% EPS growth over the past five years. Among the company’s recent woes is a major hack, but the stock remains a top pick for some on Wall Street. Its shares are down more than 13% year to date, and the company is set to post its third-quarter results on October 30.
Nvidia Corp. (NASDAQ: NVDA) EPS are expected to see a 17.1% gain in the next five years, though that compares to more than 38% growth in the past five years. The processor maker is among companies that could easily double their dividends. The share price now is almost 35% higher than at the beginning of the year. The next earnings report is expected in the middle of November.
Salesforce.com Inc. (NYSE: CRM) EPS will show a gain of 30.7% in the next five years, if the analysts are correct, while that growth was over 24% in the past five years. The enterprise cloud computing company recently secured a deal with Apple. Salesforce shares are trading about 50% higher year to date. Watch for its report in November as well.
Micron Technology Inc.’s (NASDAQ: MU) EPS will grow 24.9% over the next five years, if the forecast is on target. Here too that is a deceleration from growth in the past five years. Though it is one of the most shorted Nasdaq stocks, this one is also an out-of-favor pick at Merrill Lynch. The stock is trading less than 2% higher year to date, despite recently posted better-than-expected results.
Square Inc. (NASDAQ: SQ) is expected to have 54.8% EPS growth in the next five years, a jump from less than 9% in the past five years. This payment solutions company has one of the highest growth rates out there, and some now lump it in with the FANG stocks. But shares are only around 10% higher year to date, less than the Nasdaq. Its next earnings report is expected later this month.
And Lam Research Corp. (NASDAQ: LRCX) EPS are expected to grow 21.4% in the next five years, putting on the brakes after more than 90% growth in the prior five years. The stock has been a laggard despite the bull market. The share price is more than 21% lower than at the beginning of the year. The company is scheduled to release its fiscal first-quarter results on October 16.
Analysts also expect the true titans of the sector — Alphabet, Apple and Microsoft — to post solid to strong earnings growth over the next few years, though not necessarily matched by growth on the top line.