Many of the highest performing stocks are in technology companies. 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 stocks to buy now.
Technology stocks come in all shapes and sizes, from well-known global enterprises such as Amazon (NASDAQ: AMZN), Facebook (NASDAQ: FB), and Alibaba (NYSE: BABA) to smaller startups just making their IPOs that could potentially offer massive returns to early investors. The key to seeing a big return on investment (ROI) is picking the right stocks at the right time.
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 everyday.
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 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.
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.
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.
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.
Cybersecurity will be one of the Biden administration’s top priorities, especially after the fairly recent SolarWinds attacks.
Indeed, global cybersecurity could potentially grow to $281 billion by 2029.
And this cybersecurity firm specializing in preventing critical attacks could not only help the government defend America, but also hand you double the profits… .
Facebook’s currently in the middle of a controversy over the role “Big Tech” should – or shouldn’t – play in regulating speech, with the federal government and some 46 state attorneys general actively seeking the breakup of the world’s most successful social media site.
Playing this space just right can give savvy tech investors double the market’s return….
It is amazing to think Western Union debuted the first electronic fund transfer 150 years ago in 1871.
Way before the internet, computers and even the telephone, this first payment was done via the telegraph and proved to be immensely successful.
Today, it's grown into an entire industry of it's own: fintech.
Now the industry today is much more than sending payments.
It's managing funds, trading stocks, cryptocurrency, lending, payment plans and much more, all conducted through apps on your phone or on a computer.
Now, I'm looking at another fintech opportunity for our readers.
It's one you won't want to miss...
This will be the year of the SPAC.
But not all SPACs are worth buying.
With over 200 blank-check companies reaching public markets in 2020 it pays to be selective.
Some SPAC mergers have been big let downs for investors.
But the most successful SPACs have had one thing in common: excellent management.
As a technology investor, I have been watching many of these companies form and I've been digging into the management behind each and every one of them to share with you what is on the horizon.
There are the three best SPACs to watch right now...
Google and Facebook are selling off right now because investors are worried about regulator lawsuits – here’s how to play them.
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When you think advertising, Madison Avenue should come to mind; TV, radio, and print have been dominant advertising tools for decades.
But digital advertising is about to change all that.
Indeed, the advertising company Michael's showing you today zoomed nearly 400% since its March lows, and it's just getting started... .
If 2020 holds any lessons for us - and I think it does - surely the power of preparedness is right up there.
This past year was remarkable in many ways, but what stood out to me most in 2020 was the rapid adoption of tech in business. In short, the coronavirus pandemic forced most companies to adapt to remote work. Those that couldn't suffered; brick-and-mortar business was one of COVID-19's biggest casualties.
In this environment, three industries quickly emerged as frontrunners, and my experience tells me they'll build on and even exceed that performance in the year ahead of us; I'll be watching these like a hawk in 2021, because I expect to see substantial growth and, even better, outsized returns for folks with the wisdom to get in on the ground floor... Full Story
The $2 trillion tech sector became the ace up America’s sleeve during the COVID-19 pandemic.
Indeed, 2020 was the year tech saved America and 2021 will be the year it helps make regular investors a fortune, particularly if they focus here….
As 5G expands throughout the world of mobile technology, Qualcomm Inc.
(NASDAQ: QCOM) will continue to be a major player in the global rollout.
Qualcomm is a global leader in developing, supplying, and licensing the technology to connect people to 5G through their mobile devices.
The market is so massive.
There are more mobile devices than toothbrushes in the world, after all... QCOM stock has been on the rise in 2020 (up 66%) as mobile phone usage is increasing.
And as 5G continues to expand, investors should expect QCOM stock to rise with it for years to come.
The exploding demand for this technology includes the new 5G iPhone, makes this a tech stock worth looking at.
Qualcomm is the driving force behind 5G, and its launch, development, and expansion.
Here is our complete analysis of the company, including our Qualcomm stock prediction.
There’s a leader in the e-commerce space whose stock costs less than one-third of Amazon even though its earnings are growing 10% faster.
Today Michael’s going to show you how this market-crusher could double again in less than two years and why it’s a profitable addition to your portfolio….
Dear Elon: Congratulations - Tesla stock is up 549% year-over-year.
No doubt, five consecutive quarters of profit really riled up those short sellers you hate so much.
Yes, the future is bright.
Real bright.
But if you want it to stay bright, there's a catch... You have to do it all again.
Or one electric vehicle (EV) stock is going to eat your lunch.
Talking about the gains a stock’s already given investors is like looking in the rearview mirror – unless those gains are going to be repeated bigger than before.
Like with one of Michael’s favorite “breakthrough” med-tech stocks of the year that still has plenty of upside ahead….
Outer space is filling up with dangerous junk.
With 10,000 new satellites slated to be launched in the next three years, the potential for danger is soaring.
Luckily, Michael’s identified a company focused on keeping the crowded space above the Earth safe.
It just made a key merger to become a true space traffic controller.
And it’s set to double earnings in just a little over three years….
I’m not sure I could have survived this year without e-commerce, and I have a feeling many of you are thinking the same thing.
In fact, e-commerce is growing faster than ever before, jumping to 16.1% of total retail sales in Q2 2020 from 10.8% last year in the United States.
That equates to billions of dollars spent online from groceries to electronics and even cars.
That’s why we have seen stocks like Shopify (NYSE: SHOP), Amazon (NASDAQ: AMZN) and Carvana (NYSE: CVNA) skyrocket over 100% this year with everyone at home.
The best part is this trend isn’t going away anytime soon.
And one company is taking the opportunity to tap into a wide open market…
Elastic NV (NYSE: ESTC) is at it again with another stellar quarter.
We first talked about how Elastic could be the next Google back in July.
Now shares are up roughly 40% and still reasonably priced for it to be a strong buy for investors.
We'll show you why that's still a steal for this tech stock...
