The tech space has seen a lot of changes over the years. We may have gone from being the “PC” to being “smart,” but one thing remains true: tech is a booming industry, and it will remain so for years to come. There are new technologies coming out every day, knowing which stocks to buy can be difficult. That said, this article covers five stocks that are worth investing in now. All you have to do is take a look at what the experts say and follow their lead!
Tech stocks have been a huge part of the stock market ever since the market broke below 1,000 for the first time in 2018. This was not all that long ago, so it is no surprise that a large number of stocks in this sector have not done as well as the overall market. However, those with the best track records are sure to reward investors with outsized gains in the years to come. Stocks such as Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA) are big companies and therefore have more sophisticated technologies than smaller firms. For investors looking for the more modest risk of growth, Apple and Nvidia make for a great, low-risk, high-reward opportunity. I will highlight why these are top-notch tech stocks to buy.
The hottest stock on the block right now is Snapchat (NYSE: SNAP ), which is for the most part a social networking service. The biggest difference is that Snap focuses on images rather than text. The popular kids app is a good source of user engagement and revenue and is getting more popular as time goes on. Facebook (NASDAQ: FB ) and other social networks are pushing ads into the space. As a result, the average user will be exposed to a lot more ads, which will make Snap’s ad revenue soar. The good news for shareholders is that, despite the pressure, it’s still growing and will continue to do so. Evan Spiegel, Snap’s CEO, announced that daily active users hit 186 million during the second quarter of 2018, up from 170 million in the prior quarter.
One company that is absolutely killing it is Netflix (NASDAQ: NFLX ). The company started as a DVD rental service, but has expanded to become an entertainment behemoth. Its most recent quarter saw the subscriber count rise to 117 million. As the company continues to add subscribers, its total revenue has been steadily increasing. Thanks to its global reach, the company is expected to be a top performer over the coming years. At the present, Netflix sports a Zacks Rank #1 (Strong Buy). In addition, its Price-to-Sales ratio of 1.63, while below the industry average of 3.14, is a sign that the stock is not overly valued. Twitter Another top performer in the tech space is Twitter (NYSE: TWTR ). The company’s most recent earnings report, released in late October, was strong across the board.
Year-to-date gain: -22.6 percent After closing its $2.4 billion takeover of Paypal last year, eBay (NASDAQ: EBAY ) is undergoing an overhaul. But what we’ve learned from its latest earnings report shows that this is a smart move. Earnings per share jumped nearly 26 percent over the last year, and eBay isn’t done yet. Alongside its earnings, eBay also revealed some promising signs regarding its business. The number of active buyers rose 6 percent year-over-year, which represents a 15-year high. In addition, gross merchandise volume (GMV) — which measures the amount of sales that a merchant sells on eBay — rose 12 percent year-over-year. However, like eBay itself, its stock also fell after the earnings release.
Source: Shutterstock It’s a good thing IBM (NYSE: IBM ) is involved in so many industries and business functions, as the company has something to offer everyone. With cloud services, analytics, software, and digital commerce, it has a broad range of services and products for a wide range of needs. While its revenue is definitely on the downswing, its profit margins are still very impressive. The company is still expected to report healthy earnings growth of 9% for its current fiscal year. The company pays a dividend of $11.00 per share. IBM stock is down about 12% over the past year. Honeywell (HON) Source: Shutterstock Companies like Honeywell (NYSE: HON ) often go unnoticed as they are quietly helping companies around the world remain more productive.
Tech Stocks to Buy Now: IBM (IBM) Source: Shutterstock IBM Corporation (NYSE: IBM ) was one of the first “computer” companies and is a leader in the technology industry today. But many investors may not know that IBM was actually built in 1919 from three smaller companies — Computing Machinery Co., Sperry Rand, and Radio Corporation of America — all of which were subsidiaries of the Computing-Tabulating-Recording Co. By 1975, IBM had $100 million in annual sales, but it was not until the turn of the 21st century that its growth really took off. And then, in 2013, IBM completed its acquisition of Red Hat for $33 billion, which made it the world’s first $100 billion enterprise. As of March 2018, IBM had $104 billion in total assets. But it is still not a household name like it once was.
We have highlighted five stocks that look appealing, but it’s important to make sure you do your due diligence before investing. Therefore, you should consider researching the companies for yourself. For example, did the company “catch on” or is it currently facing roadblocks? Do you believe that the company will be able to defend its market share in a changing tech space?