Bank technology stocks rose last week, outperforming the general market. The Dow Jones industrial average rose 3.5% for the week to close at 8189.49. Meanwhile, the Goldman, Sachs & Co. index of U.S.-traded technology firms, which lists many bank technology companies, was up 5.3% for the week, closing at 158.94.
Neeraj K. Vohra, analyst at Friedman, Billings, Ramsey & Co., Arlington, Va., said technology stocks are "coming back into favor" after a significant downturn late last year.
"People are getting more comfortable now that Asia hasn't killed off a lot of these tech stocks," he said. Harbinger Corp., Atlanta, reported fourth-quarter earnings of $38 million, or 21 cents per share, also exceeding expectations. The report helped propel Harbinger's stock rose $8.50 for the week. The company's stock closed Friday at $33.25.
Shares of Electronic Data Systems Corp., Plano, Tex., rose 62.5 cents for the week, to $42. The company reported fourth-quarter operating revenues of $4.2 billion, or 62 cents per share, which exceeded expectations, according to First Call.
Intuit Inc.'s stock price rose $5.625 for the week, to $43. Gary Craft, analyst at BancAmerica Robertson Stephens, San Francisco, attributed the rise in part to the tax-filing season. The Mountain View, Calif.-based company publishes popular financial management software, including Turbo Tax.
Intuit's shares are significantly undervalued, Mr. Craft said, because Intuit will play a dominant role in electronic financial services, which he estimated will blossom into a $14 billion annual market in five years.