Stocks You Should Buy Into 2021

 

Nasdaq -100 index notching a record high in mid-January, still, Tech stocks have slowed down in 2021 till now. All around the world global economy rebounding itself,

The market trends turn towards high-growth tech stocks to economic shares like airlines, industrial companies, and retailers. Every downtrend creates new opportunities for buying stocks, especially for considerate investors. 

For the past ten years, high growth and wonderfully established tech businesses promise significant upside great power, as they can instantly enhance earnings and revenue. The future of investing in tech stocks has to appeal to most long-term investors. However, it has higher growth potential, which implies a more significant risk. Tech stocks are priced for the best execution. It can be said that they can effortlessly plunge if they don’t provide better earnings, which means not according to the hopes and expectations. 

Significant vital elements to consider before betting on tech stocks are:

  • Capable management.
  • Solid fundamentals.
  • Attractive access junctures provide a fantastic margin of safety.
  • A record of bullish trading movement. 
  • Dividend yield
  • Price to earnings ratios

Here is a list of top tech stocks that can add total returns to trade portfolios in the latter half of the year.

Microsoft 

52 week range:196.25 – 271.65

Dividend yield: 0.9%

The second-largest US corporation as measured by market capitalization, just before Apple. This fiscal year its annual revenues are expected to grow more, approximately $166 billion extra. 

The balance sheet is quite solid as it shows $125 billion cash at present. Additionally, it has got AAA credit rating from famous companies like Standard & Poors’. 

However, The natural charisma is that MSFT is already an impressive leader in the stock market. Still, it is expanding at a pace that puts all other companies to shame. In Particular, the revenue will boost to 16% this year, with earnings of each share projected to increase 35% from $5.76 in the fiscal year 2020 to an estimated $7.77 in FY2021. Such inspiring figures for any stock, and which is already on the top of the list. That’s the main reason Microsoft is a strongly recommended buy.

ROBO Global robotics & Automation index ETF

52-week range: $41.10 – $ 72.28

Dividend yield: 0.19%

Automation and digitalization are very significant, especially in pandemic times. The number of robotic units produced has been rising fast. According to the latest metrics, the global market for robots is expected to expand at a compound yearly growth rate of approximately 26% to achieve only 210 billion US dollars less by 2025. The Robo Global robotics and automation index ETF is a popularly -known fund. Net assets have developed close to $1.9 billion since October 2013. Robo has 85 holdings as of now. Over the last year, Robo has gained approximately 53% and reached an all-time high in mid-February. To date, the fund is still near 6%. Indeed, this tech stock is the favorite of many investors. 

Palo Alto Networks(PANW)

52- week range: $217.48 – $ 403.00

Dividend yield: 2.37%

Total revenue increased to 24% YOY to $1.1 billion, and adjusted net income grew to 22% YOY $139.5 million, or $1.38 each diluted share. Enhanced digitalization over last year has made cybersecurity quite significant. According to market research, the sector is all set to expand from USD 152.71 billion to USD 248.6 billion by 2023 at a CAGR of 10.2% to 2023.

Palo Alto is a cybersecurity provider system and established in Santa Clara, California. This service agency sells security pieces of equipment, subscriptions, and backing up chiefly to enterprises and government commodities.

This service provider agency published FY21Q3 outcomes awaited till May 20.

Palo Alto Networks provides its products primarily as subscription services. Hence they get a steady stream of cash flow from the customer. Wall Street loves this kind of business model. 

PANW stock began at $355.38, and it has hit the mark 52 weeks ATH $403 on Feb 19 for decreasing approximately 20% in the next few weeks. The current trade rate is $365, rising about 3% YTD; it has gained 65% over the last 12 months.

ACI worldwide

52-week range: $23.55- $43.23

Dividend yield : 0.71%

Based in Florida, ACI worldwide creates and markets a portfolio of software products mainly focused on promoting electronic payments. The products manage payment transactions for commercial banking clients, utilities, healthcare providers, merchants, and many others. The company’s daily transaction is about $14 trillion.

In this digital era of 24-7 payment processing and a consistent drive to decrease friction and boost the effectiveness in payment systems, ACI worldwide is a fantastic opportunity to numerous investors as it powers digital payments for 6000 and more firms globally that execute $14 trillion every day in transactions.

 Total revenue was $285 million, down 2% year-over-year due to Covid’s 19 pandemic situations worldwide. Net loss was at 2cents per diluted share. Cash flows from we’re $70 million from operating activities in the quarter, up 22% YoY. 

The group’s software products target to enhance fraud protection and curtail interchange fees charged to merchants as they bill a customer. ACIW is a critical player in the process of the payment value chain. 

ACIW stock opened at $38.68 at the beginning of the year and reached a 52- week high of $43.23 in mid-February. At present, this stock is trading mildly at $40, up 2% YTD.

Global X Fintech ETF(FINX)

52-week range: $32.62 – $ 52.87

Dividend yield: .19%

It’s An exchange-traded fund. The global X FinTech ETF provides access to companies in the financial technology sector. These firms provide solutions in investing, digital payments, insurance, and third-party lending. In September 2016, the ETF started trading, and now FINX has 39 holdings. 

The names in the ETF have come under pressure after a record high in mid-February. The top ten stocks include Over 50% of total net assets of $1.3 billion. However, the fund is flat till now in 2021; the return over the last 52 weeks is more than 43%. This decline can be taken as an alternative to buying FINX by the interested long-term investors around these points.

Final Thoughts

Numbers are not everything when the topic is technology stocks. There are many examples of high flying companies that didn’t have a single penny of profits to boast, but they delivered outstanding performance with Amazon.com and Tesla as both are the most well-known examples. Tech stocks are unique in improving instantly, and sometimes it can even turn around a losing position to a massive cash cow as and when they hit critical mass. Conventional metrics such as operating and price-to-earnings ratios don’t have much significance, but investors should be aware of these numbers’ constraints when choosing tech stocks. Therefore you need to lookout important metrics like top-line, revenue, and growth. 

The technology industry is growing; even after the coronavirus pandemic devastated the global economy market last year, tech stocks sighted a significant hike. Additionally, Wall Street-based analysis is to watch out for. Considering the tech stocks mentioned in the write-up, you will be able to figure out the best stock and invest in that. By looking at PE ratios and the stock’s dividend yield, you can choose the best one for you. Hopefully, you will be able to decide which stock to invest in in 2021.