Do you intend to invest in stocks of big tech giants? Well, you’ve made the right choice as tech stocks are sure to reap good ROI. Are you looking for the most profitable tech stocks to invest on? Then, this post will serve your needs. In this post, you can find information about the top tech stocks. So, let’s begin.
Owing to Covid-19 restrictions, we saw a paradigm shift to digital life. There has been increased adoption of technology to facilitate studies, work, shopping and even entertainment via digital modes. In such a scenario, companies such as Facebook, Microsoft, Alphabet, and Apple have grown manifold times. This, in turn, skyrocketed tech stocks and they’ll continue to reap potentially higher rewards in 2021.
Before we glance at best stocks to buy now, let’s dive into the basics.
What are Tech Stocks?
The stocks of companies operating in the technology sector is known as a tech stock. Tech stocks belong to the companies that are engaged in selling tech-based products or services. These stocks are publicly traded shares, or simply the shares of ownership available for tradinng. Let’s explore some of the spheres of investment in tech stocks:
- Artificial Intelligence
- Computers & Software
- The Internet of Things (IoT)
- The Cloud
- Chip Makers
- Component Makers
- Self-Driving Technologies
- SaaS (Software-as-a-Service)
Importance Of Technology In The Stock Market
A cursory glance at the history will reflect how tech industries have brought a paradigm shift in the productivity of the stock market.
- Rise of Dot-Com Provided Easy Accessibility: Due to the internet revolution prevailing in the 1990s, the websites dedicated to selling products or services surged immediately. This led to the rise of various dot.com companies in 1999, such as, ‘boo.com’, and ‘lastminute.com’. And soon, the ‘dot.com bubble’ started to expand. The result of which is that almost every individual has quality access to the internet today, which was not the same back then.
- Marketing Through Social Media Platforms: Today, various social media platforms allow companies to market themselves. The positive rumours about any company on a social media platform can enhance the revenue generation as well as the brand’s identity.
- Super-Fast Trading: With high-speed computers, it has become possible now for traders to deal in nanoseconds. Owing to the high-speed predictions within a small fraction of time, traders can decide what stocks to buy and what stocks to sell for extensive positive results in the future.
Best Tech Stocks To Buy In 2021
Below are the best stocks to buy now!
Undoubtedly, the largest traded company in the world is none other than Apple. With its revolutionary and iconic iPhones and iPads, the company has set a gold standard for all other rivals. Let’s have a look at some of its data!
- Market Value: $2.2 Trillion
- Dividend Yield: 0.6%
- Profit Ranking In The Past 12 Months (As Of December 2020): $57.41 Billion
Now, consider these important aspects:
- Increasing Production: According to the recent reports from Nikkei Asia, Apple is planning to raise its iPhone production by around 30%, that too in the first six months of 2021.
- Wider Range: Besides keeping itself ahead in the world of the electronic market, the company is becoming much more than just a mobile manufacturer. The Services segment of the company, which includes paid content like App Store, iTunes, and Apple TV, is currently representing approximately 19% of the total revenue generated by the company.
- Benefits From Accessories: In addition to manufacturing iPhones and iPads, Apple also receives greater benefits from various other accessories like AirPods and the Apple Watch.
AAPL (Apple) could be one of the best stocks to buy now because of its dominance on the market and extraction of extra cash through various services in 2021.
With the ability to grow by 10 to 20 percent per year, Adobe is arguably the most appropriate stock to buy when it comes to endurance. Have a look at these aspects:
- Market Value: $240 Billion
- Revenue In 2020: $12.9 Billion (15% Increased From A Year Ago)
- The Adobe Creative Cloud (which includes services such as, Dreamweaver, InDesign, Illustrator, Acrobat Pro, Premier, and Photoshop) accounts for around 20% of growth year over year. Thus, it is the most creative revenue driver for the company.
- Being a cloud-based SaaS company, ADBE is likely to grow earnings more quickly while going forward in 2021.
- Owing to the heavy digitization because of the pandemic, the company will continue to boom and expand in the upcoming fully digital world. Thus, it can be considered as one of the best stocks to buy now!
Best known for its suite of cloud-based computing solutions, Salesforce builds custom software with third-party developers. Below are the reasons why Salesforce is one of the best stocks to buy now:
- Market Value: $210 Billion
- Gains In The Past 5 Years: 190%
- Year-To-Date Profit For CRM Through Late 2020: Approximately 40%
- With around $200 billion, Salesforce has already entered the top categories of the tech sector.
- The revenue growth for the company was set to 20% in 2020 and then another 20% for the next year too.
- The company strictly holds deep pockets as well as enriched ambitions to become the dominant tech stock like Apple and Microsoft.
Including trillion-dollar stocks, Microsoft is undoubtedly the software giant that smartly seeped into the future world with its cloud-based and mobile-friendly solutions. Have a look at some of the aspects that makes Microsoft one of the best stocks to buy now!
- Market Value: $ 1.7 Trillion
- Dividend Yield: 1.0%
- The Azure segment of the company is the 2nd largest cloud platform in the world. According to its October earnings report in 2020, the revenue growth was at an incredible rate of 48%. It simply proves the strength of Microsoft company.
- The Xbox content and services of MSFT generated a revenue of 30% more in the latest quarter.
- MSFT also has $138 billion in cash on its books, thus ensuring the unrivaled stability of its stock for the next many years.
Other valuable tech stocks
Apart from these giants, there are many more tech stocks that are worth investing:
- NortonLifeLock Inc. (NLOK)
- Price: $20.38
- Market Cap: $12.1 Billion
- 12-Month Trailing P/E Ratio: 4.0
- Xerox Holdings Corp. (XRX)
- Price: $23.03
- Market Cap: $4.6 Billion
- 12 Month Trailing P/E Ratio: 5.6
- Synnex Corp. (SNX)
- Price: $82.93
- Market Cap: $4.3 Billion
- 12-Month Trailing P/E Ratio: 8.8
- Coherent Inc. (COHR)
- Price: $140.62
- Market Cap: $169.4 Billion
- EPS Growth: 966.7%
- Qualcomm Inc. (QCOM)
- Price: $149.74
- Market Cap: $169.4 Billion
- EPS Growth: 514.3%
- First Solar Inc. (FSLR)
- Price: $91.77
- Market Cap: $9.7 Billion
- EPS Growth: 400%
- Cloudfare Inc. (NET)
- Price: $81.81
- Market Cap: $25.1 Billion
- 12-Month Trailing P/E Ratio: 345.3
Although 2021 might be full of unpredictable market events, being an investor, you should always focus on the bigger picture. Digital transformation is one of the biggest trends that is more likely to get bigger in the coming years. Choose any of the best tech stocks that can help you to dominate the market world and garner high ROI.
If you are confused in selecting the best tech stocks, then choose us as your wealth management partner and receive bespoke financial advice. To learn more about the tech stocks for 2021, visit Wealthface today!