Advancing one position to No. 2 is Brian Modoff of Deutsche Bank Securities, who boasts “tremendous contacts in the industry, private and public,” as one money manager reports. “He is well versed in technology and broader industry trends,” this fan adds. Modoff considers the sector “a growth market well into the future, with the shift to mobile clouds enabling access to information anywhere on any device,” he says. Furthermore, he forecasts that the network will become “a two-way information pipeline, with the increasing use of machine-to-machine and person-to-machine sensors and monitors.” Modoff sees three companies as key enablers of this shift — Cisco Systems; Seattle’s F5 Networks; and Qualcomm of San Diego — and maintains a buy rating on all three. San Jose, California–based Cisco is a long-standing favorite. Modoff upgraded the maker of modems, routers and other networking devices from hold in November 2011, at $17.85, citing strong sales and stable margins. He has highlighted his position repeatedly, and over the 12 months through August 2013 the stock rose 27.1 percent, from $18.34 to $23.31, leading the S&P 500 by 10.4 percentage points. The analyst covers 18 companies in this sector and expects to add to his list before the end of the year; he also earns a runner-up spot in Data Networking & Wireline Equipment. — Pam Baker |
The 2013 All-America Research Team: Telecom Equipment/Wireless, No. 2: Brian Modoff