The technology sector is a great place to look for growth stocks. Between Amazon, Apple and others, the tech sector has delivered some of the best returns since the Great Recession in 2008 and 2009. 

Growth stocks have the potential to offer high returns, but the risks may be too steep for some investors. A company that develops a new technology or cure for a disease could see its stock price rise quickly in a relatively short period of time -- aka, growth.

And while stocks -- even those with strong growth rates -- should never be considered foolproof, the stocks on this list should work for investors seeking growth.

Here are the 12 buy-rated tech stocks that also have the highest growth rates via their revenue, cash flow and earnings in the S&P 500 Index, according to TheStreet Ratings, TheStreet's proprietary ratings tool. TheStreet included trailing 12-month revenue growth, net income growth and earnings-per-share growth on each company for comparison.

TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a "buy" yielded a 16.56% return in 2014 beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a "buy" yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

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1. Apple (AAPL - Get Report)
Industry: Technology
Market Cap: $626 billion
Year-to-date Return: 3.4%

12-Month Revenue Growth: 27.85%
12-Month Net Income Growth: 35.14%
12-Month EPS Growth: 43.04%

TheStreet Said: TheStreet Ratings team rates APPLE INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate APPLE INC (AAPL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • APPLE INC has improved earnings per share by 38.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, APPLE INC increased its bottom line by earning $9.20 versus $6.43 in the prior year. This year, the market expects an improvement in earnings ($9.89 versus $9.20).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Computers & Peripherals industry average. The net income increased by 31.4% when compared to the same quarter one year prior, rising from $8,467.00 million to $11,124.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 25.6%. Since the same quarter one year prior, revenues rose by 22.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Computers & Peripherals industry and the overall market, APPLE INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • 45.95% is the gross profit margin for APPLE INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.59% is above that of the industry average.
  • You can view the full analysis from the report here: AAPL

 

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2. Akami Technologies Inc. (AKAM - Get Report)
Industry: Technology/Internet Software & Services
Market Cap: $10.4 billion
Year-to-date Return: -6.1%

12-Month Revenue Growth: 15.61%
12-Month Net Income Growth: 4.06%
12-Month EPS Growth: 5.17%

TheStreet Said: TheStreet Ratings team rates AKAMAI TECHNOLOGIES INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate AKAMAI TECHNOLOGIES INC (AKAM) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 15.1%. Since the same quarter one year prior, revenues rose by 10.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Although AKAM's debt-to-equity ratio of 0.20 is very low, it is currently higher than that of the industry average. Along with this, the company maintains a quick ratio of 3.11, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has slightly increased to $182.61 million or 5.38% when compared to the same quarter last year. In addition, AKAMAI TECHNOLOGIES INC has also modestly surpassed the industry average cash flow growth rate of 3.04%.
  • AKAMAI TECHNOLOGIES INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AKAMAI TECHNOLOGIES INC increased its bottom line by earning $1.84 versus $1.61 in the prior year. This year, the market expects an improvement in earnings ($2.43 versus $1.84).
  • You can view the full analysis from the report here: AKAM

 

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3. Amphenol Corp. (APH - Get Report)
Industry: Technology/Electronic Components
Market Cap: $16.3 billion
Year-to-date Return: 1.3%

12-Month Revenue Growth: 7.74%
12-Month Net Income Growth: 10.72%
12-Month EPS Growth: 12.47%

TheStreet Said: TheStreet Ratings team rates AMPHENOL CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate AMPHENOL CORP (APH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • APH's revenue growth has slightly outpaced the industry average of 0.3%. Since the same quarter one year prior, revenues slightly increased by 7.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • AMPHENOL CORP has improved earnings per share by 14.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, AMPHENOL CORP increased its bottom line by earning $2.22 versus $1.96 in the prior year. This year, the market expects an improvement in earnings ($2.38 versus $2.22).
  • The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Electronic Equipment, Instruments & Components industry average. The net income increased by 12.2% when compared to the same quarter one year prior, going from $182.21 million to $204.50 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, AMPHENOL CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: APH

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4. Cognizant Technology Solutions Corp. (CTSH - Get Report)
Industry: Technology/IT Counseling & Other Services
Market Cap: $40 billion
Year-to-date Return: 25%

12-Month Revenue Growth: 20.75%
12-Month Net Income Growth: 11.58%
12-Month EPS Growth: 10.91%

TheStreet Said: TheStreet Ratings team rates COGNIZANT TECH SOLUTIONS as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate COGNIZANT TECH SOLUTIONS (CTSH) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and growth in earnings per share. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 27.0%. Since the same quarter one year prior, revenues rose by 23.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CTSH's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.10, which clearly demonstrates the ability to cover short-term cash needs.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.05% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CTSH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • COGNIZANT TECH SOLUTIONS has improved earnings per share by 12.1% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, COGNIZANT TECH SOLUTIONS increased its bottom line by earning $2.35 versus $2.02 in the prior year. This year, the market expects an improvement in earnings ($3.04 versus $2.35).
  • You can view the full analysis from the report here: CTSH

 

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5. F5 Networks Inc (FFIV - Get Report)
Industry: Technology/Communications Equipment
Market Cap: $7.2 billion
Year-to-date Return: -19.5%

12-Month Revenue Growth: 10.84%
12-Month Net Income Growth: 17.29%
12-Month EPS Growth: 23.22%

TheStreet Said: TheStreet Ratings team rates F5 NETWORKS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate F5 NETWORKS INC (FFIV) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 9.1%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • FFIV has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.40, which illustrates the ability to avoid short-term cash problems.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Communications Equipment industry and the overall market, F5 NETWORKS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for F5 NETWORKS INC is currently very high, coming in at 85.63%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.35% is above that of the industry average.
  • Net operating cash flow has slightly increased to $183.34 million or 7.93% when compared to the same quarter last year. In addition, F5 NETWORKS INC has also modestly surpassed the industry average cash flow growth rate of 4.05%.
  • You can view the full analysis from the report here: FFIV

 

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6. Fiserv Inc. (FISV - Get Report)
Industry: Technology/Data Processing & Outsourced Services
Market Cap: $21.5 billion
Year-to-date Return: 34.6%

12-Month Revenue Growth: 3.77%
12-Month Net Income Growth: -11.34%
12-Month EPS Growth: -5.83%

TheStreet Said: TheStreet Ratings team rates FISERV INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

We rate FISERV INC (FISV) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, notable return on equity, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 27.0%. Since the same quarter one year prior, revenues slightly increased by 4.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • FISERV INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FISERV INC increased its bottom line by earning $2.98 versus $2.45 in the prior year. This year, the market expects an improvement in earnings ($3.86 versus $2.98).
  • The gross profit margin for FISERV INC is rather high; currently it is at 53.77%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 16.60% trails the industry average.
  • Compared to its closing price of one year ago, FISV's share price has jumped by 36.63%, exceeding the performance of the broader market during that same time frame. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to other companies in the IT Services industry and the overall market on the basis of return on equity, FISERV INC has underperformed in comparison with the industry average, but has greatly exceeded that of the S&P 500.
  • You can view the full analysis from the report here: FISV

 

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7. Lam Research Corp. (LRCX - Get Report)
Industry: Technology/Semiconductor Equipment
Market Cap: $12 billion
Year-to-date Return: -2.4%

12-Month Revenue Growth: 20.28%
12-Month Net Income Growth: 16.76%
12-Month EPS Growth: 14.57%

TheStreet Said: TheStreet Ratings team rates LAM RESEARCH CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:

We rate LAM RESEARCH CORP (LRCX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, compelling growth in net income and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 10.8%. Since the same quarter one year prior, revenues rose by 38.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, LRCX has a quick ratio of 2.38, which demonstrates the ability of the company to cover short-term liquidity needs.
  • LAM RESEARCH CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, LAM RESEARCH CORP increased its bottom line by earning $3.70 versus $3.68 in the prior year. This year, the market expects an improvement in earnings ($6.05 versus $3.70).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 104.6% when compared to the same quarter one year prior, rising from $141.08 million to $288.68 million.
  • You can view the full analysis from the report here: LRCX

 

 

MA Chart MA data by YCharts

8. MasterCard Inc. (MA - Get Report)
Industry: Technology/Data Processing & Outsourced Services
Market Cap: $108 billion
Year-to-date Return: 14.1%

12-Month Revenue Growth: 4.47%
12-Month Net Income Growth: 8.14%
12-Month EPS Growth: 11.3%

TheStreet Said: TheStreet Ratings team rates MASTERCARD INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate MASTERCARD INC (MA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 27.0%. Since the same quarter one year prior, revenues slightly increased by 1.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • MA's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.29, which illustrates the ability to avoid short-term cash problems.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the IT Services industry and the overall market, MASTERCARD INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • The gross profit margin for MASTERCARD INC is rather high; currently it is at 60.95%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 38.61% significantly outperformed against the industry average.
  • MASTERCARD INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MASTERCARD INC increased its bottom line by earning $3.09 versus $2.57 in the prior year. This year, the market expects an improvement in earnings ($3.35 versus $3.09).
  • You can view the full analysis from the report here: MA

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9. Paychex Inc. (PAYX - Get Report)
Industry: Technology/Data Processing & Outsourced Services
Market Cap: $19 billion
Year-to-date Return: 15.6%

12-Month Revenue Growth: 8.67%
12-Month Net Income Growth: 12.05%
12-Month EPS Growth: 12.06%

TheStreet Said: TheStreet Ratings team rates PAYCHEX INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate PAYCHEX INC (PAYX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 27.0%. Since the same quarter one year prior, revenues slightly increased by 8.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • PAYCHEX INC has improved earnings per share by 23.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, PAYCHEX INC increased its bottom line by earning $1.84 versus $1.71 in the prior year. This year, the market expects an improvement in earnings ($2.04 versus $1.84).
  • The gross profit margin for PAYCHEX INC is currently very high, coming in at 75.28%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.92% significantly outperformed against the industry average.
  • Net operating cash flow has slightly increased to $278.30 million or 5.77% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -11.39%.
  • You can view the full analysis from the report here: PAYX

 

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10. Red Hat Inc. (RHT)
Industry: Technology/Systems Software
Market Cap: $14.2 billion
Year-to-date Return: 14.4%

12-Month Revenue Growth: 13.98%
12-Month Net Income Growth: 7.4%
12-Month EPS Growth: 10.41%

TheStreet Said: TheStreet Ratings team rates RED HAT INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate RED HAT INC (RHT) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, notable return on equity and good cash flow from operations. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 17.3%. Since the same quarter one year prior, revenues rose by 13.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • RED HAT INC has improved earnings per share by 12.0% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, RED HAT INC increased its bottom line by earning $0.97 versus $0.93 in the prior year. This year, the market expects an improvement in earnings ($1.86 versus $0.97).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 9.8% when compared to the same quarter one year prior, going from $46.82 million to $51.40 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Software industry and the overall market, RED HAT INC's return on equity exceeds that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to $120.28 million or 11.63% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -10.48%.
  • You can view the full analysis from the report here: RHT

 

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11. Total System Services Inc. (TSS)
Industry: Technology/Data Processing & Outsourced Services
Market Cap: $9.7 billion
Year-to-date Return: 55.7%

12-Month Revenue Growth: 12.64%
12-Month Net Income Growth: 16.97%
12-Month EPS Growth: 44.11%

TheStreet Said: TheStreet Ratings team rates TOTAL SYSTEM SERVICES INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate TOTAL SYSTEM SERVICES INC (TSS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and reasonable valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 27.0%. Since the same quarter one year prior, revenues rose by 14.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.76, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. To add to this, TSS has a quick ratio of 2.40, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 47.72% and other important driving factors, this stock has surged by 57.33% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • TOTAL SYSTEM SERVICES INC has improved earnings per share by 47.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, TOTAL SYSTEM SERVICES INC increased its bottom line by earning $1.46 versus $1.27 in the prior year. This year, the market expects an improvement in earnings ($2.46 versus $1.46).
  • You can view the full analysis from the report here: TSS

 

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12. Texas Instruments Inc. (TXN - Get Report)
Industry: Technology/Semiconductors
Market Cap: $57 billion
Year-to-date Return: 6.4%

12-Month Revenue Growth: 2.14%
12-Month Net Income Growth: 18.66%
12-Month EPS Growth: 21.92%

TheStreet Said: TheStreet Ratings team rates TEXAS INSTRUMENTS INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate TEXAS INSTRUMENTS INC (TXN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations, solid stock price performance and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The current debt-to-equity ratio, 0.41, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, TXN has a quick ratio of 1.69, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, TEXAS INSTRUMENTS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has slightly increased to $1,409.00 million or 1.87% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -22.28%.
  • TEXAS INSTRUMENTS INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TEXAS INSTRUMENTS INC increased its bottom line by earning $2.58 versus $1.92 in the prior year. This year, the market expects an improvement in earnings ($2.72 versus $2.58).
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • You can view the full analysis from the report here: TXN