Top Tech Stocks for June 2020

Technology is a special case in the COVID-19 pandemic. While the markets tanked more than 30%, some tech stocks blew up.

Some of these are still the best tech stocks for June 2020. We'll go over those today.

Zoom Communications Inc. (NASDAQ: ZM) was one shining star through the lockdown. The stock has popped 252% since Jan. 1.

The great thing about tech stocks like Zoom is that they are positioned well for an uncertain future. It hasn't slowed down for the pandemic. And just think, even if the lockdown lasted our entire lives, many tech stocks would still thrive. You would still be reading this on your screen.

But it's not just "stay at home" stocks. Technology stocks, in general, are possibly the best growth industry to invest in regardless of what happens.

These will offer great upside potential down the road, but some of them even pay decent dividends. These top tech stocks can prove resilient in tough times. They can skyrocket in the good times.

They are ahead of the curve. If you want to get in on the most powerful trends the market has to offer, don't sleep on these stocks.

We'll start with an easy one...

Keep Riding Tech Stocks with the Most Momentum

Money Morning's William Patalon, III, notes Apple Inc. (NASDAQ: AAPL) has "tons of cash and a bulletproof balance sheet." But what's really going to carry it is its pioneering of the technology "ecosystem." This makes it one of the most adaptable, forward-thinking companies around.

Its latest ecosystem could be Apple's biggest gold mine yet: healthcare. Apple CEO Tim Cook has said that healthcare might be the company's "greatest contribution to humankind" down the road. The company is building systems for better-connected medical staff and better-informed doctor-patient relationships.

This goes hand-in-hand with the company's efforts to produce biometric wearables, starting with the smartwatch. But the tools can only grow from there.

Apple has been one of the most reliable growers the market has to offer over the last few years. It's grown 177% since June 2015, from $126 to $351.

Some analysts have given Apple a high target of $400 over 12 months. That would be 13% growth for today's investor. It's only going to keep climbing, so get it while you can.

Now, Apple is everyone's favorite tech stock. But this next one has a little more upside this year, thanks to one big catalyst on the way.

This Is One of the Fastest-Growing Tech Stocks

Microsoft made waves with its Azure cloud platform in the last couple years. According to Gartner, it's helped Microsoft control 17.6% of the public cloud market share. It's only second to Amazon Web Services' (AWS) 32.4% as of February 2020.

Microsoft's market share could expand even further this year as the company fights for a Department of Defense contract with AWS. But even if Microsoft doesn't win the contract, Azure has another big opportunity on the horizon...

America's Soaring Data Usage Could Make You a Fortune - Click Here to Find Out How...

According to Counterpoint Research, the connected car market is supposed to grow 270% by 2022. There will be 125 million connected cars on the market. That's a huge opportunity for Microsoft to step in and lead the connected car cloud sector.

The Microsoft Connected Vehicle Platform is a main candidate for controlling this field to power better navigation and communication using the cloud. It's pioneering how data is managed and how cars communicate on the network.

This makes Microsoft another sure buy-and-hold for any portfolio. It currently trades at $196. Some analysts say it could hit $250 in 12 months. That's 28% growth for an already-thriving tech stock.

Of course, Apple and Microsoft are two obvious tech leaders with limitless growth potential. But you shouldn't ignore this next sector if you really want to profit from tech.

Don't Sleep on Value Tech Stocks

The gaming industry is another one set to pop with smarter technologies. But it's not just augmented reality and virtual reality entering the picture.

Gaming is also becoming more social. That's money in the pocket of Zynga Inc. (NASDAQ: ZNGA).

Zynga is a social game developer based in San Francisco. Its games are mostly developed for mobile platforms and social networks. This is the company behind the wildly popular FarmVille. Zynga stock popped after the release of FarmVille, but it's trading at a deep discount today. That's great for investors since you can get in for cheap, while the company is transitioning into breakout mode.

Zynga has proven itself one of the more resilient gaming stocks through the recent crash. More people play games when forced to stay at home. And that's sent the stock up 46% since December.

In its May 6 earnings report, Zynga showed revenue growth of 52% year over year.

The company has been making smart front office moves to expand recently. It acquired Peak Games for $1.8 billion earlier this month.

The acquisition adds two top-ranking puzzle games to Zynga's portfolio. On top of that, the company will inherit 12 million daily users. This makes a good case for long-term upside for the stock.

Zynga still has plenty of room to grow. With $198 million in free cash flow, it has space to fund further acquisitions and develop more games down the road.

You can buy shares of Zynga for $9.19 today. Some analysts say it could hit $12 in 12 months. That's a solid 30%. But depending on whether we get a second wave of COVID-19 lockdowns, this could soar higher, sooner.

Now, we've shared some big future gainers. But none of these technology stocks can really measure up to the potential behind this next one...

Best Tech Stock to Buy in June 2020

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We mentioned Zoom earlier. Well, Bill Patalon calls Teladoc Health Inc. (NASDAQ: TDOC) the "Zoom of Healthcare."

It's the leading interface for doctors to communicate with patients remotely. They do this through virtual care delivery (VCD) systems.

The platform is more than just a video chat between doctors and patients. It also helps store and transmit important patient information. Pharmacists can even use it to run clinics with patients, without an appointment.

Especially when you consider the possibilities in the future wearable device market, it's clear that health is headed more in the remote direction. Not only will doctors and patients be scheduling video appointments, but doctors could potentially track patient health metrics through a patient's wristband to get ahead of any problems.

"Connected health" is projected to be a $624 billion market by 2024. But Teladoc is also working on breaking into other specialist medical markets. It's a total of $57 billion medical subsectors.

Teladoc's most recent earnings report showed a $41% revenue jump to $181 million. It reported a 92% spike in telehealth visits, to 2 million. And the COVID-19 crisis has already enabled the company to match half of last year's total visits - 4.1 million - in the first quarter alone.

TDOC shares go for $188 today. It has a 17% analyst target. But that could be pennies compared to the growth you see after 5G, IoT, and cloud technologies take off...

Six-Figure Payday Opportunity Opens After the FCC Launches $10 Billion Initiative

Working from home, telemedicine, and even online grocery shopping are trends that've been here for years without causing any problems... until February.

The 88 most populous cities across the United States are now seeing their Internet speeds tumble by 44% (and this could just be the start).

That's why the FCC had to step in - and its $10 billion initiative could translate to a huge payout because of it.

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About the Author

Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.

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