tech stocks

Best Tech Stocks to Buy

Tech stocks are the most important sector of the stock market.

These companies' innovations create services and products integral to daily life and are upending traditional industries and business models. Investors craving the explosive growth potential of these innovations can look no further than the best tech stocks to buy now.

Technology stocks come in all shapes and sizes, from well-known global enterprises such as Amazon.com Inc. (NASDAQ: AMZN), Facebook Inc. (NASDAQ: FB), and Apple Inc. (NASDAQ: AAPL) to smaller startups just making their IPOs that could potentially offer massive returns to early investors.

That also means the way we evaluate tech stocks has to be different than the way we evaluate the rest of the stock market.

Tech investors look for growth. They want a company with a great idea and a management team committed to making it work. As Money Morning Defense and Tech Specialist Michael Robison puts it, "The road to wealth is paved with tech." And it doesn't matter if it's a startup going public or a tech megacap dominating its sector.

But that doesn't mean just any tech stock will see the sort of explosive growth investors want. Tech is extremely competitive, and only the best companies with the best ideas and best management hitting their stride at exactly the right time will make investors money.

That's why we've combed through the most promising tech stocks across the hottest trends in tech to find you stocks with real growth potential.

Here are our best tech stocks to buy today…

The Best Tech Stocks to Buy for 2022

A lot has happened in a few months’ time. We’re fighting off another pandemic wave, knee-deep in inflation and supply chain disruptions. Some tech stocks are even struggling with the broader market.

But that does not mean you won’t find good tech buys for the coming year. In fact, the current climate could put several tech stocks at a discount. That would make a broad market rise down the line even more profitable.

So, you want to invest in fast-growing technology company stocks. These companies  develop products and programs that could change the world in the blink of an eye.

To make sure you don't miss out on any of the fall's hottest stocks, we've got the best tech stocks to buy in 2022…

An Innovative Cybersecurity Stock to Buy Now

Thousands of communications satellites orbiting Earth are prime targets for hackers. The threat here can’t be overstated.

For example, almost every car, truck, train, plane, and ship in the world today uses GPS to track its location, keep to a schedule, and avoid obstacles. And NASA has been the target of more than 6,000 cyber incidents – with 1,785 of those attempted hacks last year alone.

That’s just the tip of the iceberg. Almost every company in the world now uses satellite communications, whether they know it or not.

That’s why Zscaler Inc.’s (NASDAQ: ZS) services are so crucial. The company runs over 150 data centers around the world, which together handle 150 billion transactions per day.

Google does a mere one-tenth that number.

Not only that, but Zscaler is directly at the forefront of securing the huge satellite communications market. It's built out this massive capacity to protect its more than 4,500 clients, which together have more than 20 million employees.

But Zscaler isn’t just a good story. The numbers are great, too.

Zscaler stock is up 341.5% over the last two years, beating out the S&P 500 by 563%.

And this innovator is still  growing.

The company's earnings per share soared 114% in Q3 2020, well above its three-year average of 90%.

The stock took a 15% dip from November 2021 to close the year. But that could be a discount opportunity, since Zscaler is just getting started.

A Back-End Tech Play to Power Your Portfolio

This leader in the $17.4 billion market for standby power gained more than 50% between April and November the last year. That beat the S&P 500 by an amazing 227%.

And that’s just the beginning…

Generac Holdings Inc. (NYSE: GNRC) is the first company to create a home standby generator and build an engine specifically for extreme weather. This is a huge market.

Take California, for instance.

California boasts a population of 39.7 million people. And yet in the world’s fifth-largest economy, only 1% of homes have standby power. And by the company’s own estimates, every additional 1% of the American standby power market it captures translates into a whopping $2.5 billion in sales.

That’s on top of the $2.5 billion in net sales this firm scored in 2020, 63% of which came from residential customers like you and me.

In an investor presentation released last month, this Washington state-based energy titan laid out a vision for its growth for years to come.

Between what the firm calls “Grid 2.0,” which will create opportunities in clean energy and grid services, the shift toward work-from-home corporate models, requiring those folks to have some means of backup power, and the ongoing 5G wireless update, this is a very savvy investment.

Generac can grow its main power business and also profit from alternative energy with a system all green homes and businesses will need – convenient and efficient storage.

The stock has beaten the broad market by as much as 227%, but it could rise even higher in 2022. Earnings could grow at a more conservative 24% a year, which means earnings should double in just three years.

That makes GNRC a great backend tech play to power your portfolio for many years to come.

The 5G Tech Stock to Buy Now

The rollout of 5G networks continues across the globe, and that is the technology development that could have the biggest impact on the world over the next few years. As we have seen in the pandemic, the faster the broadband speeds and the wider the bandwidths are, the better the world functions.

At the heart of the 5G revolution is Aviat Networks Inc. (NASDAQ: AVNW). Aviat sells a range of wireless networking products, solutions, and services in North America, Africa, the Middle East, Europe, Russia, Latin America, and the Asia Pacific.

Maybe that sounds boring, but what they really sell is all the technology that makes the internet work faster and more efficiently, which means the world works faster and more efficiently.

Aviat is the pure-play microwave solutions company for 5G networks. Microwave signals are faster than light through fiber and will be a huge part of major 5G networks.

There is another huge growth opportunity in front of Aviat Technologies right now. The Biden infrastructure plan calls for $100 billion to be spent getting high-speed broadband services to the rural parts of the nations. Aviat has been involved in rural broadband projects for years and stands ready to help build the future in those areas.

That same expertise can help bring the internet to emerging economies around the world, and Aviat expects to see growth opportunities from those markets as well.

Aviat is also the leader in using microwave technology for private markets for utilities, law enforcement, and government agencies.

Aviat has been a steady grower, and the company looks to accelerate that growth as 5G brings broadband to rural America.

The Best Tech Stock for the Chip Shortage

Another company that looks poised to blast off is an Israeli semiconductor equipment manufacturer called Camtek Ltd. (NASDAQ: CAMT). Camtek makes products that allow manufacturers to improve yields and drive down costs.

That's critically important right now as semiconductor companies scramble to produce enough chips to meet the demand. Between the pandemic shrinking production and the explosive demand as the global economy comes back to life, we see a shortage of semiconductors around the world. This has brought some industries like auto manufacturing to a standstill.

Manufacturers like Ford are closing plants while used car prices soar. There simply aren't enough new cars to keep up with demand. At the same time, tech firms like Apple are warning that their business could slow down thanks to the chip shortage.

Virtually every social, demographic, and economic trend will drive demand for semiconductors and semiconductor testing equipment like the products Camtek provides. We are moving from the growth of PCs and the internet as the big demand driver for the semiconductor industry into the age of big data.

Big data is smart homes.

Big data is 5G.

Big data is artificial intelligence.

Big data is electric vehicles and driverless cars.

Big data is smartphones.

And big data needs semiconductor chips.

Chip manufacturers need the products made by Camtek to produce the chips quickly, cheaply, and profitably.

Camtek has already been growing at a torrid pace. In the first quarter of 2021, revenues were up year over year by over 90%.

In its Q2 2021 earnings release, the company earned $67.5 million in revenue, an increase of 82% on a year-over-year basis. Camtek beat analyst expectations by 6.74% for earnings per share (EPS) and 5.31% for revenue and has a strong operating cash flow of $19.9 million.

Camtek has doubled revenue every four years.

Wall Street analysts are just discovering the stock and have been scrambling to keep up with Camtek's growth trajectory.

Institutions are starting to notice the stock too. Buyers include well-known growth stock investors like Ark Investments and Driehaus Capital.

The positive earnings surprises, analyst estimate increases, and institutional buying pressure can combine to send stocks dramatically higher very quickly.

The chip shortage is expected to continue into 2023, meaning chip makers will rely on Camtek. Coupled with long-term trends like Big Data, that spells growth for the company over the next two years and beyond.

The Best Tech Stock Right Now for Infrastructure

Bentley Systems Inc. (NASDAQ: BSY) sells software to the people that plan, design, and build infrastructure. These include engineers, architects, and construction firms. As money begins to flow into rebuilding infrastructure, there will be more demand for Bentley's software.

Its software can be used to design bridges, mines, dams, and factories. Architects can also use their products for site plans, rail network planning, and treatment plant analysis. Before the first shovel of dirt is turned in, the designers and builders can have the project all laid out using software from Bentley Systems.

Bentley's software creates digital workflow between architects, engineers, and construction companies both in the office and in the field to ensure projects run smoothly and according to plan.

A lot of new infrastructure projects will come online over the next few years, and that's going to create demand for the software sold by Bentley Systems.

As requested by the president, the infrastructure bill calls for billions of dollars to be spent in updating schools and expanding broadband access to everyone in the United States. That will create enormous demand for fiber optic products, and our next stock to own in May is going to be a huge beneficiary of that demand.

This Top Tech Stock Dominates Fiber Optics

Clearfield Inc. (NASDAQ: CLFD) sells pretty much everything you need to deploy a fiber network, including frames and cabinets, optical components, cable and drop assemblies, terminals and cabinets, and wall boxes.

Clearfield's customers are broadband service providers, including the large national carriers, local companies, utilities, and municipalities.

There were already huge opportunities for Clearfield from the rollout of 5G and the continued adoption of cloud computing and data centers. Add in government-mandated expansion and updates to the nation's fiber-optic grid, and business is about to go from good to great.

Halfway through 2021, the company's sales were up 45% year over year while the backlog of work rose by more than 100% compared to the first quarter of 2020. Gross profit margins climbed from 39% to 43.6%. As a result of the powerful sales increase combined with margin improvement, earnings exploded from just $0.05 last year to $0.27 this year.

That's year-over-year earnings growth of more than 400%.

The stock rose more than 200% in 2021, and it will climb even higher in 2022.

A Fintech Stock That Is Not Robinhood

The fintech sector is expected to be worth $309 billion next year. And while Robinhood stock makes headlines lately, there are plenty more growth opportunities in other emerging fintech stocks.

You may or may not know this one. But it’s certainly not getting the attention it should.

Money Morning Chief Investment Strategist Shah Gilani recommends Dave.com as one of the top rising fintech stocks out there right now.

This company is not public yet. But it’s on the way to merging with VPC Impact Acquisition Holding III (NYSE: VPCC), which you can buy before the merger happens. VPC is a special purpose acquisition company (SPAC) or “blank check company” that invests in promising startups like Dave.

And Dave is promising. The company offers banking accounts and debit cards with a new spin.

The company pitches itself as a “friend” that can rely on for a small loan when you want to avoid overdrawing your account. Overdraft fees can add up – they average $33.43 in the United States – so the demand is there.

You can link a Dave account to another checking account to bump up your checking account balance with a free advance “to cover upcoming expenses up to $100.”

This $4 billion startup will eventually be listed on the NYSE when the merger is complete. In the meantime, you can buy shares of VPCC and wait for the ticker to change and the value of the stock to soar.

How to Find the Best Tech Stocks to Buy Right Now

To help you find the best stocks to buy, Money Morning gives you insight into which stocks we see as good buys, which stocks should be avoided, and what news matters in the Dow Jones every day.

Growth and Momentum

The best tech stocks to buy now are often stocks with strong upward momentum. One big benefit of buying tech stocks is how much growth potential the sector offers. Some high growth stocks may not be profitable yet are difficult to evaluate using traditional metrics. That is why looking for tech stocks that have been moving higher can be a good indicator that more people want to buy them and that they're riding a trend. A good way to examine growth and momentum is by evaluating a key piece of technical analysis called the moving average.

• Moving Average – A stock's moving average (MA) is the average closing price over a certain time period, like 20 days, 50 days, or 200 days. It's used to get a baseline for where the stock is trading that removes any short-term fluctuations. When a stock is trading above its 20- or 50-day MA, it shows good upward momentum.

Fundamentals

Fundamentals are, simply put, data that can potentially impact the price of a company's stock. Factors included in a fundamental analysis of a company can include its management of capital, its cash flow, profit retention, funding for growth and research and development, and more.

The fundamentals of technology stocks are an important part of evaluating their potential. This is because well-established tech companies such as Google and Microsoft that boast solid fundamentals have also proven their ability to maintain leadership in their markets.

A valuable fundamental to consider is earnings per share:

• Earnings Per Share (EPS) Growth – Earnings per share refer to the company's profit divided by its outstanding shares. Strong growth in EPS means a bigger ROI. EPS growth of 25% or more over a 12-month period is a good sign.

Value

A successful track record isn't always an indicator that a company is offering one of the best tech stocks to buy now. In addition to looking at recent earnings, it's important to consider the stock's price-to-earnings ratio (P/E).

P/E compares the price of a share in a company to its earnings per share. A high P/E means that a stock's price is expensive compared to its earnings and is potentially overvalued.

A low P/E means that a stock is cheap compared to its earnings and could be undervalued. Buying undervalued stocks is an important part of value investing. Each sector has its own "normal" P/E ratio. Tech stocks typically have high P/Es because there's high future growth anticipated.

How Do I Buy Technology Stocks?

Tech stocks can be purchased just like any other stocks. You can buy stocks in individual companies which you have studied and believe will give you a solid ROI.

Having a hard time dividing which stock is right for you? Maybe you can choose to invest in an ETF or mutual fund. By doing so, you get exposure to multiple stocks that are picked by the fund manager. Funds can be focused on IPOs, companies that give dividends, high-growth companies, specific sectors in the tech sphere, and more.

Although ETFs give you broader exposure to the tech market as a whole, owning the best technology stocks individually offers savvy investors a better chance at making more money than by simply looking into ETFs.

Why Should I Invest in Tech Stocks?

Investing in tech companies is popular because it is an exciting way to profit on some of the fastest growing businesses in the world. Early investors in some of the biggest tech companies have seen massive returns. For example, Amazon stock, which is now worth thousands of dollars, had an IPO of $18.

While not every stock is going to skyrocket the way Amazon has, there is still plenty of room for growth in the tech world and the opportunity for smart investors to pick stocks with a bright future.

Article Index

3 Top Tech Stocks to Avoid Right Now

It seems like every day we get good news about progress on a vaccine for coronavirus.

Unfortunately, a vaccine could mean headwinds for some of this year's favorite tech stocks.

Even though these companies are great, their stock prices have gotten a little overheated, which means it's best for investors to avoid buying them right now.

Read more...

Why FUBO Is the “Cord-Cutting” Profit Play of 2021

With people spending more time at home, subscriber totals for Disney Plus, Netflix, and Roku have ballooned by the tens of millions, and 80% of U.S. households now have at least some way to stream videos.

The quality and amount of content is incredible, but there's something that's been lacking with the services listed above - the ability to just sit down and channel surf live TV, have live news updates running in the background, and watch your favorite sports as they are being played.

Thankfully, products like Alphabet Inc.'s YouTube TV, DISH Network's SlingTV, and Walt Disney Co.'s Hulu Plus Live TV have all helped us unplug from the traditional cable companies that charge an arm and a leg for a bunch of extra channels we don't want or need.

You can now watch live TV with a simple Internet connection anywhere and on any device.

But there's one company that stands out to me above the rest - one that I have been excited about since I spoke with its CEO earlier this year on the Nova-X lifetime podcast, Digitization-X.

Back in July, when I had my one-on-one interview with the CEO, the stock was trading around $10.

Today, it's at $16. But that won't last...

Best Internet of Things (IoT) Stocks for 2021

The line between man and machine is getting blurrier, and it's making tech investors wealthier.

The Internet of Things (IoT) describes the growing connectivity of everyday objects via the Internet.

Wearables and other smart mobile devices can fall into this category, but the network of IoT devices is expanding beyond what we could have imagined years ago.

Now is the time to look at the best Internet of Things stocks for 2021.

The 3 Best Tech Stocks to Buy in a Post-Vaccine World

If you've been following the logic of the markets lately, it's telling us a coronavirus vaccine is bad news for tech stocks.

The Dow rallied over 1,000 points on the news that Pfizer (NYSE: PFE) has announced its COVID-19 vaccine is more than 90% effective.

But the tech-heavy Nasdaq is down 2% on the week.

Many stay-at-home stocks like Zoom (NASDAQ: ZM) and Peloton Interactive (NASDAQ: PTON) stumbled on the news and are down double digits on the hopes of returning to normal life.

Zoom plunged over 25% by mid-week.

Many have compared the current run in tech stocks to the Dot-com bubble.

Excessive speculation on internet companies drove share prices up until the market peaked in early 2000, then the whole thing came crumbling down.

I'm here to tell you this is not the case today.

Far from it.

And it's giving us the opportunity to invest in some of the best tech stocks on the planet for absurd discounts.

Read more...

The 3 Best Tech Stocks with High Dividends to Buy Now

2020 has been the year of the technology explosion.

The coronavirus pandemic has accelerated advances in cloud computing, remote working and learnings, e-commerce and several other segments of the technology marketplace.

A decade worth of adoption took place in a matter of weeks as we were all stuck at home.

While income investors may feel left out of the technology explosion, that doesn't have to be the case.

In fact, I'm going to show you two of the best tech stocks with high dividends right now.

That's right.

You get the explosive growth potential of tech stocks with the added income of a dividend stock.

That's a win-win.

Here are my three favorites...

3 Best Sports Gambling Stocks to Buy Now

There was one clear winner in Tuesday's election, and I'm not talking about the presidency.

Legal sports gambling swept victories everywhere it was on the ballot.

Voters approved sports gambling by a wide margin in Louisiana, Maryland, and South Dakota by comfortable margins.

It seems people love to bet on sports, and states love the tax revenues sports betting can generate.

And with the market rallying again, the best sports gambling stocks are due to surge even higher.

Why PayPal Stock Is a Screaming Buy Now

PayPal stock has been one of the biggest winners of 2020, but investors are starting to cool off on the stock after its latest earnings report.

That’s a huge mistake.

This is one of the most innovative companies on the market and the sky is the limit for this tech stock.

.

Read more...

Why Big Tech Stocks Have Nothing to Fear from Antitrust Suits

Many investors in Big Tech stocks were likely concerned when they heard that the Department of Justice had filed am antitrust suit against Google.

After all, antitrust rumors have dogged every Big Tech company for years.

But now it looks like regulators are getting serious.

While thing may look ominous, the chances are very good the Big Tech companies won't feel much pain from antitrust actions.

In fact, investors may well come out ahead…

Rich Investors Are Buying These 2 Tech Stocks Now

Rich investors are taking advantage tech stocks right now.

According to Dataroma, a website that tracks 68 of the world's top billionaire portfolio managers like Buffett, Marks, Ackman and more, five of the top stocks rich investors own are Facebook, Google, Microsoft, Amazon, and Apple.

This is unsurprising, as these are some of the biggest and most popular stocks in the world.

What is more interesting and useful for retail investors like us, however, are the stocks they're buying now that are flying under the radar.

Thanks to the SEC filings billionaire portfolio managers are required to submit quarterly, we can track exactly which companies these are.

This will give you an advantage over most investors because you're essentially getting inside info on the stocks the big guys are buying that other people don't know about yet...

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Why AMD Stock Is a Better Buy Than Intel or Nvidia

When it comes to investing, it's difficult to find the next big thing.

Companies like Amazon (NASDAQ: AMZN), Zoom (NASDAQ: ZOOM) and Teladoc (NYSE: TDOC) have all been media darlings, but I'm focusing on a completely different space.

The fact is, consolidation is fueling growth in the semiconductor market.

That's why we have seen as much M&A in the semiconductor market this year as we have had in the past three years combined.

These deals are creating cross-sell opportunities and improving manufacturing as they scale up.

While these deals I just mentioned were the largest semiconductor deals of the year, I'm looking at what could be one of the biggest opportunities as two more companies join forces.

Here's why that makes AMD stock one of my favorite tech plays right now...

The 4 Best Tech Stocks in 2021 Are Pioneers of the New Economy

The economy was hit hard by a global pandemic in 2020, but the tech sector didn't just survive, it's now more essential than ever.

And it's making folks a lot of money.

Small businesses have opened digital storefronts with Shopify (NYSE: SHOP), meetings are conducted on Zoom (NASDAQ: ZM) and remote health has become necessary with companies like Teladoc (NYSE: TDOC) leading the charge.

These companies are up 165%, 640% and 175% just this year.

This is all in the face of a 35% drop in the market earlier this year and an economic recession.

But this is just the start for some of the best tech stocks on the market and 2021 could be a breakout year.

Read more...

The Best Financial Stock Grows as Banking Is Changed Forever

Ever hear that joke about a Starbucks on every corner? It starts to make sense when you realize that there over 15,000 locations across the United States.

But that pales in comparison to the over 80,000 full-service bank branches.

Add in ATM machines and now you are at almost half a million locations where you can get cash.

The funny part about that, is even though there are so many locations to get cash, I can't remember the last time I walked into a bank and I can imagine you are thinking the same thing.

That's more than a simple shift in consumer preferences.

It's a massive trend in fintech that could push the best financial stocks even higher...

Read more...

TV Is Dead, Long Live Connected TV (Part 1): The Leading Streaming Stock

According to market research firm OnePoll, three in four people are using more streaming services since the coronavirus came to the U.S and the average person has logins to four streaming services.

But this is only the tip of the iceberg as the industry rapidly evolves.

Netflix's 80% jump since March attests to that.

But despite the continued cord-cutting, millions of households still turn on the cable box and watch traditional TV.

And this first company I'm looking at has racked up millions of users with billions of viewing hours...

3 Best Tech Stocks to Buy on the Rebound

When you run a marathon, it's better to focus on the finish line rather than each breath or stride.

That was the first thing that came to mind last week as the tech heavy Nasdaq dropped roughly 7% and Apple saw $180 billion erased from its market valuation on Thursday, the most any U.S.

company has ever lost in a single trading day.

Focusing on the finish line is important not just in sports but also the stock market.

While the tech selloff hammered markets over the last week, it is important to look at the bigger picture and look at the move as a healthy pullback for a bull market.

Read more...