Tech stocks have been among the favorites of investors in recent times. Names like Apple, Amazon, Facebook, and Google (Alphabet) have generated tremendous long-term wealth for equity investors, especially during the last decade or so. However, that does not mean that every technology company is destined to grow impressively. There have been many companies that did not make it. While the NASDAQ100 had been on a strong uptrend during the last few years, it has started to pullback since February 2021. Therefore, this would probably be a time when an investor has to get selective when it comes to making the decision to buy tech stocks right now. One interesting area that has been doing quite well is the intersection of finance and technology. The payment space is already quite crowded. But, the payments processing and technology solutions space is quite interesting. Companies like Jack Henry & Associates are among the leading players in this sub-sector.
Jack Henry & Associates Reports Q22021 Earnings Results
On 9th February 2021, Jack Henry & Associates reported its Q22021 earnings results. Total revenue was up from around $419 million in Q22020 to $422 million. Earnings per share on a diluted basis were the same in Q22021 as it was in Q22020 at $0.94. Jack Henry CEO Dave Foss said, “As we begin the second half of our fiscal year, our sales pipeline is very robust, and we continue to be optimistic about the strength of our technology solutions, our ability to deliver outstanding service to our customers, our ability to expand our customer relationships, the spending environment and our long-term prospects for success.” Investors looking for tech stocks to invest in may want to consider Jack Henry & Associates.
Buy Tech Stocks Right Now
Jack Henry & Associates’ stock had done reasonably well till August 2020. On a 5-year basis, it was up more than 100%, which basically meant that the stock had doubled. Since August 2020, the stock was down 20%, with the price at around $156 at the close of the trading day on 29th March 2021. The dividend yield at that time was around 1.18%.