Seagate, SAP and Other Top European Tech Stocks

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Some European nations may be trying to keep their heads above water, but not all is doom and gloom on the continent. Take the tech sector. Here is a quick look at seven companies with share prices that are between 13% and 64% higher than at the beginning of the year despite recent pull backs. They all trade on U.S. exchanges and are dividend payers as well.
Accenture
's
ACN
share price has pulled back more than 3% from a recent mulityear high but is still up almost 20% year to date. The Dublin-based IT giant just announced completion of its acquisition of a Madrid-based consulting firm. Accenture, a $44.9 billion market cap company, has a return on equity of 62.7% and a dividend yield of 2.1%. Over the past six months, the stock has outperformed IBM
IBM
but underperformed the broader markets.
See also: U.S. Department of State Awards Accenture Task Orders to Improve Procurement ProcessASM InternationalASMI
is up more than 30% year to date but the share price has pulled back about 3% since the start of April. This Dutch semiconductor maker has recovered from substantial losses in 2009 and 2010. It has a return on equity of 34.8% and a dividend yield of 1.5%. Its market cap is $2.1 billion. The stock has outperformed rivals such as Applied Materials
AMAT
and Novellus
NVLS
since the beginning of the year. London-based
BT GroupBT
saw its share price rise more than 18% to a multiyear high in March but it has pulled back more than 7% since then. This British telecom recently announced a deal that would pay down the deficit in its staff pension fund. The company's market cap is $27.4 billion and its dividend yield is 3.4%. The PE ratio is 9.6 and the return on equity is 437.5%. The stock has outperformed the likes of Vodafone Group
VOD
over the past six months.
SAPSAP
is more than 24% higher than at the beginning of the year but has dropped more than 5% in the past week. The German company has announced a new unit, SAP National Security Services, that will support national security and intelligence agencies. SAP's market cap is $80.9 billion and the return on equity is 30.6%. The stock has outperformed larger competitors IBM, Microsoft
MSFT
and Oracle
ORCL
over the past six months.
See also: SAP to Acquire Syclo, Extends Leadership in Mobilizing the Enterprise
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Seagate TechnologySTX
is more than 63% higher year to date but shares have traded mostly between $26 and $28 since early February. Third-quarter results are expected to be stellar when Seagate reports earnings next week. The Dublin-based device maker has an $11.9 billion market cap, a long-range EPS growth forecast of 36.3% and a dividend yield of 3.8%. Over the past six months, the stock has outperformed competitor Western Digital
WDC
.
See also: Top Stock Picks of Best Performing Hedge Fund Managers
Shares of
STMicroelectronicsSTM
are trading more than 26% higher year to date despite dropping more than 9% in the past week. The Swiss semiconductor producer is expected to post a narrow Q1 loss when it reports April 23, but its long-range EPS growth forecast is 39.2%. It has a market cap of $6.7 billion and a dividend yield of 5.4%. Year to date, the stock has outperformed competitors such as Intel
INTC
and Texas Instruments
TXN
.
VimpelCom
's
VIP
share price is up more than 15% year to date despite pulling back about 9% in the past month. The Amsterdam-based wireless provider posted a net loss for the fourth quarter due to acquisition-related costs. The $14.2 billion market cap company has a dividend yield of 7.3%. Its long-range EPS growth forecast is 62.6%. But the stock has underperformed competitor Mobile Telesystems OJSC
MBT
, as well as the broader markets, over the past six months.
ACTION ITEMS: Bullish: Investors interested in non-U.S. tech stocks with healthy dividends may want to consider the following trades:
  • Cellcom Israel CEL has a dividend yield of 18.6%.
  • Partner Communications PTNR has a dividend yield of 16.5%.
  • Telefonica TEF has a dividend yield of 13.7%.
  • France Telecom FTE has a dividend yield of 13.4%.
Bearish: Traders may prefer to consider these alternative positions in U.S. tech stocks:
  • CA Technologies CA is almost 34% higher year to date.
  • Broadcom BRCM is almost 26% higher year to date.
  • Agilent Technologies A is about 25% higher year to date.
Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.
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Posted In: Long IdeasShort IdeasDividendsTrading IdeasaccentureAgilent Technologiesapplied materialsbroadcomBT Groupca technologiesCellcom Israeldividend stocksFrance TelecomIBMIntelMicrosoftMobile Telesystems OJSCNovellusOraclePartner CommunicationsSAPSeagate TechnologySTMicroelectronicstech stocksTelefonicatexas instrumentsvimpelcomVodafonewestern digital
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