What if I were to tell you that Israel is the Silicon Valley of the Middle East? The country is not widely known as a place to find high-growth technology companies, but the reality is that this small and dynamic country of 7.9 million people nestled on the Mediterranean Sea is just that. The country has the second greatest number of start-up companies in the world, trailing only the U.S. There are over 120 Israeli companies listed on U.S. exchanges, including about 60 on the NASDAQ, which is second only to China. While I continue to view China as a top-growth area longer-term, the current malaise towards the integrity of Chinese companies makes Israeli stocks more trustworthy than Chinese stocks, based on my stock analysis. (Read “Chinese Stocks Hindered by Mistrust.”)
Based on my stock analysis, one of the top Israeli and best stocks listed in the U.S. equities market is pharmaceutical giant Teva Pharmaceutical Industries Limited (NASDAQ/TEVA), a developer of generic and branded drugs and active pharmaceutical ingredients.
According to my stock analysis, technology and healthcare are two of the leading industries in Israel. My stock analysis shows the country has seen a steady rise in technology companies that have performed well on the world stage.
I will mention a few that I am familiar with, but these stocks are not meant as specific investment recommendation. They are more for information purposes, based on my stock analysis.
A small-cap technology stock that has excellent long-term potential for above-average price appreciation is Petach-Tikva, Israel-based ClickSoftware Technologies Ltd. (NASDAQ/CKSW), according to my stock analysis.
ClickSoftware creates solutions that allow companies to manage resources efficiently and effectively. The company develops and sells workforce management and service optimization solutions that allow companies increased productivity, customer satisfaction, and cost effectiveness. Offices are located in Israel, the United States, Europe, and Asia.
Another interesting stock, based on my stock analysis, is Israel-based Given Imaging Ltd. (NASDAQ/GIVN), a key player in medical devices that enable health-care professionals to visualize, diagnose, and monitor the digestive system. Key products include: “PillCam” video capsules for the small bowel, esophagus and colon; “ManoScan” high-resolution manometry; and “Bravo” wireless and “Digitrapper pH” and impedance products. Given has operations in Israel, the U.S., Germany, France, Japan, Australia, Vietnam, Hong Kong, and Brazil.
A small retail solutions company that looks interesting, based on my stock analysis, is Israel-based Retalix Ltd. (NASDAQ/RTLX). Retalix develops software and hardware solutions that enable gas stations, convenience stores, and other small retailers to become more efficient in the real time monitoring and managing of their inventory, fuel sales, and sales flow. Clients include supermarkets, groceries, convenience stores, fuel stations, health and drug stores, and department stores. Installed services include about 70,000 stores and over 400,000 checkout lanes located in over 50 countries. Operations and offices are found in Israel, the U.S., England, Italy, Australia, Japan, and China. Retalix has good potential, based on my stock analysis.
While the U.S. will continue to be the top producer of start-ups, Israel is a region that will offer good investment opportunities, according to my stock analysis.