These are the top tech stocks to buy for 2021. Tech stocks experienced a tear in 2021, continuing …
These are the top tech stocks to buy for 2021.
Tech stocks saw a tear in 2021, continuing what has been a scorching 2020 for the industry, which has flourished with the sudden need for widespread remote work brought on by the pandemic and social distancing. Even with the stock market crash of 2020, the highly technical Nasdaq jumped 43.6% last year. Many of the trends that were already underway have received sudden impulses, and 2021 only brings more growth for most of the major tech players. Through July 15, US News’ 10 best tech stocks to buy returned 14.2% as a portfolio, compared to 12.8% for the Nasdaq. Here’s a look at each pick and how they performed.
Apple (ticker: AAPL)
Apple is the world’s largest publicly traded company with a valuation of approximately $ 2.4 trillion, and it continues to grow. The stock recently hit all-time highs following news that Apple was looking to boost production of its next iPhone by 20%, a bullish indication of expected demand, especially since last year saw a increased demand due to a “super cycle” upgraded users. Although Apple has been looking to diversify its revenue streams for years, second quarter tax results still saw over 53% of sales come from iPhone, so it’s no wonder AAPL actions has reached historic highs.
Cumulative performance (annual cumulative) (until 15 07): + 12.3%
His bone (SO NO)
Named one of US News 10 best stocks to buy for 2021, this home electronics company has secured an automatic spot on the list of the best tech stocks to buy for the coming year. Its sleek, easy-to-use speakers can be voice controlled and connected wirelessly throughout the home, and the Sonos app is compatible with major music streaming services like Spotify and Apple Music. By far the top-performing stock on this list, Sonos has raised its outlook for fiscal 2021 in each of its last two quarters, with revenue up 90% from the previous year. An increase in spending on home entertainment, as well as a tendency among existing customers to buy more Sonos products have been bullish for Sonos, which is still the least valuable company on this list with a valuation of over $ 4 billion. of dollars.
Cumulative performance: + 42.3%
Match group (MTCH)
Match Group is the world’s leading online dating company, with brands like Tinder, Match, OkCupid, Hinge, Plenty of Fish, and other services under its umbrella. Tinder is the world’s most profitable dating app; sales growth accelerated again in the first quarter, up 18% over one year after three quarters of growth of between 13% and 15%. Non-Tinder revenue is growing even faster, jumping 30% in the first quarter compared to the same quarter last year, mainly thanks to improved monetization at Hinge, where average revenue per user doubled between the first quarter 2020 and the first quarter of 2021. Hinge revenue tripled in 2020 and the company expects it to double in 2021. With Bumble (BMBL) now public, Match is no longer the only online dating stock, but it remains the best in its class in an industry poised for long-term growth.
Cumulative performance: + 7.7%
Like Match, Adobe is another choice that doubles as a bet on an essential part of humanity: creativity. Adobe Creative Cloud includes a handful of software services that are absolutely essential to modern creative endeavors, from filmmaking and graphic design to photography and digital content creation. Its Adobe Creative Cloud, which includes services like Acrobat Pro, Dreamweaver, Illustrator, InDesign, Photoshop and Premier, is a significant revenue driver, contributing 25% year-over-year growth in its leading segment of digital media in the last quarter. It’s rare to find a company the size of Adobe – it’s worth around $ 290 billion – steadily increasing revenue by around 20% per year. Another top pick, Adobe has earned its place among the best tech stocks to buy for 2021.
Cumulative performance: + 21.2%
Cisco Systems (CSCO)
When investors think of tech stocks, many imagine risky, high-priced growth companies that don’t pay dividends. There are several such actions on this list, but Cisco is not one of them. A tried and true top notch stocks, Cisco is a cash cow that delivers essential technology infrastructure like routers, data center products and switches, the unsung heroes that make today’s increasingly congested digital highway buzz. Cisco is trading for a reasonable profit of 22 times and pays a sustainable 2.7% dividend to boot. One of the few value stocks in a booming industry, Cisco broke a five-quarter streak of declining earnings last quarter, and analysts now expect revenue growth in both this fiscal year and the next. CSCO is a good basis for stability in an otherwise volatile sector.
Cumulative performance: + 22.6%
Alibaba Group (BABA)
Investing in foreign markets has its advantages and disadvantages. E-commerce Giant Alibaba, for example, offers a great opportunity for US investors to gain exposure to China’s growing middle class in one of the most promising markets on the planet. But the Chinese government is also playing by its own rules and wielding enormous power, a fact BABA shareholders know all too well this year as Chinese regulators crack down on Big Techs in their own country. China imposed a record fine of $ 2.8 billion on Alibaba in April for using brutal tactics with traders to force them to use its platform. At 25 times earnings, however, BABA’s underperformance in 2021 presents a nice mid-year buying opportunity. It’s not often a company that experiences such robust growth – revenues jumped 64% in the last quarter – goes for such a reasonable multiple. Now playing well with Chinese regulators, Alibaba’s antitrust issues are more than factored into current pricing.
Cumulative performance: -7.7%
Spotify technology (IN LAW)
It often pays to invest in the best-in-class companies, and Spotify does the job when it comes to music streaming platforms, ranking as the best music app in the iOS and Android app stores. The company has 356 million monthly active users, of which 158 million are premium paid members. Spotify is currently unprofitable and operates in a competitive industry, so shareholders have been a bit fickle this year, but the business is growing at a healthy pace. Analysts expect 20% revenue growth in 2021 and 2022, and the company’s non-music revenue (think podcasts) is where the opportunity for margin expansion lies if and when the business can control costs. The crowded landscape has led Spotify to start losing market share recently, but the company has a dedicated user base that like Netflix (NFLX), may be prepared to tolerate modest price increases – a strategy Spotify has already begun to deploy, with little backlash from consumers.
Cumulative performance: -21.2%
Drop box (DBX)
Cloud storage and collaboration company Dropbox is, compared to many tech stocks, pretty cheap. DBX is trading for only 19 times the forward earnings. In the first quarter, revenue grew 12% and non-GAAP earnings per share jumped 103% year-over-year. Earnings per share (EPS) growth won’t always be this robust, but even modest revenue growth of around 10% this year and next is expected to generate EPS growth 45% and 13% in 2021 and 2022, respectively. The expansion of distributed work was nothing but good news for Dropbox, which increased the number of paid users by 8% to 15.83 million in the first quarter, and increased average revenue per paying user by 5%. at $ 132.55.
Cumulative performance: + 35%
Facebook, a regular member of the best tech stocks to buy list, continues to pull in steam. The momentum Facebook continues to have for its size is remarkable: Monthly family active people – who measure Facebook, Instagram, and WhatsApp app usage – grew 15% year-on-year in Q1 to a staggering level of 3.45 billion. And although the lineups from a year ago were depressed due to the start of the pandemic, a combination of ad prices up 30% and 12% more ads running combined to send 48% revenue. higher and boost net income by 94%. FB, which at 22 times earnings ultimately still looks like a bargain, quickly grows to a $ 1,000 billion valuation.
Cumulative performance: + 26.1%
Last but not least is telecommunications giant AT&T. It doesn’t have the growth potential that most other names do, but it excels at something else: relative stability and its high dividend yield, which currently stands at 7.3%. Trading at around nine times earnings over time, T Stock is the kind of reliable, grounded name that a tech equity portfolio needs to help reduce volatility. Still, performance has been lackluster lately, and the company is divesting its WarnerMedia assets for $ 43 billion, unwinding an $ 85 billion deal to acquire a set of media assets including HBO, CNN, TBS, the Warner Bros. movie studio and other properties just three years ago. At least now the company will have more capital to focus on its core telecommunications business.
Cumulative performance: + 4.2%
10 best tech stocks to buy for 2021:
– Apple (AAPL)
– His bone (SO NO)
– Correspondence group (MTCH)
– Cisco systems (CSCO)
– Alibaba Group (BABA)
– Spotify technology (IN LAW)
– Drop box (DBX)
– Facebook (FB)
– AT&T (T)
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Update 07/19/21: This story was posted on an earlier date and has been updated with new information.