High Tech + Large Cap + Strong Momentum = Buy Pullbacks on These 5 Stocks

With that in mind, we screened our data base of 5000 stocks for large cap research companies with bullish ratings. These 5 companies continue to gain analyst confidence by posting solid revenues with excellent ROE each quarter. Attracting investor interest at current levels and in most cases breaking out to new highs, any pullback in the broader markets should provide a good possibility to add these stocks to a portfolio with long-term growth expectations. If we are correct and the bull market continues with an increasing emphasis on large cap stocks at the time technology should be leading the markets higher.

Applied Materials with a lot of cash on its’ balance sheet is so then positioned to invest for accelerated growth as customers including Intel and Samsung continue to spend heavily on semiconductor equipment to meet rising demand for tablet computers and smartphones.

Accelerated research spending by companies eager to jumpstart growth has boded so then for the largest maker of data storage computers. EMC saw its 4th quarter jump 61% as it beat Wall Street’s expectations on both revenue and revenues.

The future looks promising for EMC as companies continue to upgrade current research and as well invest in data-storage research as they understand cost savings realized by embracing cloud computing, Management expects EMC to gain share in the data storage marketplace.

The stock is back to its high previously the 2008 collapse which could provide short-term resistance. Nevertheless, given its position in one of the most critical innovation areas and the momentum it has gathered, we believe such resistance will be short lived and should be viewed as an possibility to buy on the dip.

Once Corning was known as a glass company. Today, it has successfully transformed itself into a innovation company. Now, at its core, Corning is for all that a glass company. In a word, it should not come as a surprise to anyone that the primary driver of Corning’s better than expected earnings in the 4th quarter is its ‘Gorrilla Glass’ product used in smart phone devices and LCD TVs.

However, in spite of all the noise, HP continues to execute much better than many of its peers and competitors on the field. Whether it is gaining market share in the waning PC market, teaming up with Verizon to introduce a 4G LTE (Long Term Evolution, latest standard in the mobile network technology) notebook, or flexing its muscles in the cloud computing marketplace, it continues to "invent" and grow.

The fundamentals of the company seem to be intact

The fundamentals of the company seem to be intact. A low projected P/E ratio on 2011 revenues suggests that shares are undervalued at current levels. Analysts are bullish on the company’s 2011 prospects and have raised their estimates. All these factors result in a very bullish rating. We believe that with new management team however in place and the Mark Hurd scandal a story of the past, HPQ will resume focus on business opportunities and growth or rather than personalities.

As Verizon and Apple continue to strengthen their partnership and bring the iPhone onto America’s most reliable network; there will be some automatic beneficiaries. With its chips powering the iPhone 4, Qualcomm will be leading the pack. Smartphones are the then and there wave and since Qualcomm chips are a necessity in many of these smartphones, the company stands to benefit. As if this wasn’t enough demand for growth, the company is as well seeing increased demand for sales of its chips for wireless devices from two populous countries, China and India.

The company recently announced a better-than-expected quarter and raised its forecast for 2011. Wall Street analysts, pleased with the revenues announcement, have raised their 2011 revenues estimates leading to a bullish expert opinions metric. Positive money flow activity and a very strong price trend vs. the broader market suggest that the current rally has legs and the stock will continue riding the smart-phone wave and build upon its 70% gain since July. Any pullback at these levels should provide an possibility to add QCOM to innovation oriented portfolios.