) -- In turbulent times, cash is king.
Companies with excess reserves can propel earnings and gain market share through mergers and acquisitions, which is particularly important today, when the U.S. economy is flagging.
Federal Reserve Chairman Ben S. Bernanke sees a "modest" pace of economic expansion in the second half of this year as consumers become stingier amid a flaccid job market. The August unemployment rate, scheduled to be released today, may show joblessness rose for the first time in four months. That's worrying investors, who pushed down the benchmark
S&P 500 Index
by almost 5% last month.
Here are 10 technology companies with zero debt and ample cash.
quantitative equity model, which rates stocks based on fundamentals, ranks them in the top 1% for financial strength.
FactSet Research Systems
supplies financial information and applications to investors and investment companies.
Fiscal third-quarter profit inched up to $39 million, or 81 cents a share, as revenue grew 3.8%. The operating margin remained steady at 35%. FactSet's stock trades at a trailing earnings multiple of 25, a forward earnings multiple of 23 and a cash flow multiple of 17 -- on par with peer averages.
Of analysts covering the stock, three, or 43%, rate it "buy" and four rank it "hold." A median target of $80.67 suggests a return of 5%.