May
17, 2021
6 min read
This story originally appeared on StockMarket
4 Top Tech Stocks To Watch Right Now
Investors in tech stocks have not had the best time in the stock market lately. However, if we are looking at it long-term, this could present as a buying opportunity. Given how tech has reshaped our life, it is quite unlikely that this will change anytime soon. Any new advancements in today’s world would likely be some new technological breakthrough. Even healthcare is heavily influenced by tech, which is why the biotech industry has been booming. With some of the top tech stocks trading below their previously sky-high valuations, investors may see this as a potential to buy the dip.
The sector includes companies with the largest market capitalizations such as Microsoft Corporation (NASDAQ: MSFT) and Amazon.com Inc (NASDAQ: AMZN). It should not come as a surprise that both companies have seen significant gains in their stock valuation over the past year. During this period, both MSFT stock and AMZN stock have risen by over 30%. This is no small feat as these are stocks that have already been at the top for quite some time. So, this goes to show that the sky’s the limit when it comes to tech stocks. All things considered, are these the best tech stocks to buy in the stock market today?
Best Tech Stocks To Buy [Or Avoid] Right Now
Apple Inc
First, to make the list, we have the tech titan that requires no introduction, Apple. It is considered one of the “Big Five” companies in the U.S. information technology industry. The company designs and markets mobile devices and personal computers. On top of that, it also sells a range of related software, services, accessories, networking solutions, and third-party digital content and applications. Now let us look at its recent financial figures reported in April. Apple posted a record quarterly revenue of $89.6 billion, up 54% year-over-year. Out of which, 67% of its revenue is international. AAPL stock has risen by more than 60% over the past year.
As you would expect, Apple has the internet buzzing every other day. Recently, the company teased a special announcement with the tagline “Get Ready – Music is About to Change Forever”. This could be the introduction of lossless audio or a 3D option for Apple Music with an animated video embedded in the macOS and iOS Music apps.
This indicates that users will be able to stream songs at higher quality and potentially enjoy them in some form of Spatial Audio using Dolby Atmos with the AirPods Pro and AirPods Max. Therefore, despite still facing a global shortage of semiconductors, the company continues to innovate. Given all that, would you consider AAPL stock a top tech stock to buy?
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Cisco Systems Inc
Next up, we have the multinational tech company, Cisco. The company engages in designing and selling a range of technologies across networking, security, collaboration, applications, and the cloud. Its product and technologies include infrastructure platforms; applications; security and other products. It is worth noting that Cisco will be reporting its earnings this Wednesday. Cisco’s fiscal third-quarter results will likely reflect its momentum in web security, unified threat, and network security and advanced threat offerings. This is due to increased spending on cybersecurity as employees work remotely. The stock has been up by over 20% since the start of the year.
Are there signs to show this continuous uptrend for the year? The company is on a flurry of acquisition intentions for the past week. Last Friday, Cisco announced its intent to purchase privately-held Kenna Security. Kenna specializes in risk-based vulnerability management. This will fundamentally strengthen Cisco’s platform experience by giving customers the ability to prioritize vulnerabilities based on a robust risk methodology.
In the same week, the company also announced its intent to acquire Socio Labs to power the future of hybrid events. The solution will enable live streaming, sponsorship, networking, and advanced analytics, along with continuous engagement before, during, and after events. With these exciting developments, is buying CSCO stock at this point a no-brainer?
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Snowflake Inc
Snowflake is a cloud data platform provider. The company’s platform enables customers to consolidate data into a single source. Essentially, this would help provide crucial business insights and build data-driven applications. Snowflake is often credited with reviving the data warehouse industry by building and perfecting a cloud-based data platform.
While the company stock performance has not been at its best since the start of the year. But it received a boost on Friday, rising by 11.6%. This came after Goldman Sachs analyst Kash Rangan upgraded Snowflake from Neutral to Buy and raised the price target from $270 to $275.
When looking at its financial figures, the company has also been quite impressive. Back in March, the company reported its fourth-quarter and full-year financials for fiscal 2021. Revenue for the quarter was $190.5 million, an increase of 117% year-over-year. Also, it now has 4,139 total customers, a 73% growth over the past year. Now with the company reporting its earnings on May 26, investors would be excited to see if the company could keep up with its impressive figures. Hence, would SNOW stock be a classic buy-on-dip opportunity?
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Analog Devices, Inc
To sum up the list, we have Analog Devices. The company designs, manufactures, and markets a portfolio of solutions that leverage high-performance analog, mixed-signal and digital signal processing technology. Through its advancements in technologies that sense, measure, and connect, Analog enables its customers to intelligently bridge the gap between the digital and the physical in ways never before possible.
ADI stock has been performing relatively well over the past year, showing gains of over 40% during this period. Now let us take a look back at its previous financial figures. For the 13 weeks ended January 30, 2021, the company posted revenues of $1.56 billion, up by 20%. Also, net income increased by a whopping 91% to $388.5 million.
With the company scheduled to report its earnings report this Wednesday, investors would be watching to see how the numbers stack up. In March, Analog gained unconditional EU antitrust clearance for its $21 billion acquisition of rival Maxim Integrated Products Inc (NASDAQ: MXIM). The company is seeking to boost its market share in automotive and 5G chipmaking with the deal. This also enables it to better compete with larger competitors including Texas Instruments Incorporated (NASDAQ: TXN). With what appears like a bright future ahead for the company, would you jump onto the ADI stock bandwagon before it’s too late?