Are These The Best Under-The-Radar Tech Stocks To Buy In The Stock Market Today?
Tech stocks have been the darling of the stock market in the last few months. It is undeniable how this sector has put on a stellar performance so far. More so in a time when other industries are still recovering from the pandemic that came about in 2020. The resilience that tech stocks have shown seems to have defied all odds. Rally after rally, these stocks seem to have the fundamentals to match the high valuations that they are currently enjoying. Why is that so you may ask? Well, it may be because of how the pandemic had accelerated our dependence on tech.
With the pandemic spreading like wildfire and coronavirus cases totaling over 23 million in the U.S. alone, the need to work remotely and do all our daily activities online was suddenly the only option left. With that, tech companies proliferated all over the world. For instance, tech companies like Salesforce.com (NYSE: CRM) and Zoom (NASDAQ: ZM) have enjoyed tremendous success in the last year.
Even in a post-pandemic world, things may no longer go back to the ‘old ways’. The convenience and efficiency that we have enjoyed will be here to stay. Companies do not require their employees to be at work for business continuity. All your necessities can now be bought online. Who needs to go to the movies when you have so many streaming options to choose from the comforts of your home? You get the picture. With that in mind, are these the best tech stocks to watch right now?
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Top Tech Stocks To Watch Next Week
- 3D Systems (NYSE: DDD)
- Taiwan Semiconductor Manufacturing Company (NYSE: TSM)
- Stitch Fix (NASDAQ: SFIX)
3D Systems is a company that engineers and manufactures 3D printers, printing materials, and scanners. The company was co-founded by the inventor of 3D printing, Charles Hull, and has grown into a global 3D solutions company that has a comprehensive portfolio of 3D printing technologies. From overcoming the limitations of conventional injection molding to the latest prosthetics and implants, the company’s technology has many applications.
Last week, the company released its preliminary fourth-quarter financial results, which caused 3D Systems’ stock price to more than double. The company is expecting a revenue in the range of $170 million to $176 million for the quarter, well above analyst estimates of around $140 million. 3D Systems reports that its expected revenue reflects strong organic growth that exceeds 20% in both its business units on a consecutive quarter basis. This all started last year when the company reorganized into two business units, Healthcare and Industrial Solutions, and is now seeing significant progress from these efforts.
The company also announced that it had completed the sale of its non-core software businesses, including Cimatron and GibbsCAM for approximately $64 million. The divestiture of these companies would allow 3D Systems to instead focus on its core business. It also allowed the company to strengthen its balance sheet. With the company gaining momentum, will you consider having DDD stock in your portfolio?
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Taiwan Semiconductor Manufacturing Company
Taiwan Semiconductor Manufacturing Company, or TSM, is another top tech stock to watch. Given it is one of the world’s most valuable semiconductor companies, TSM is no newcomer to the booming semiconductor industry. Investors appear to know this as well, seeing as TSM stock is looking at gains of over 110% in the past year. Notably, TSM stock soared to a new all-time during intraday trading yesterday. This coincides with the company posting its fourth-quarter financial results.
In it, the company reportedly brought in $12.9 billion in total revenue for the quarter. Furthermore, the company reported over $5 billion in net income and a 23% year-over-year rise in earnings per share. CFO Wendell Huang cited strong demand for the company’s 5-nanometer technology as a key contributor to the current results. Seeing as this particular offering of the company is used in 5G smartphone manufacturing, there seems to be a growing market for what TSM is offering. Looking forward, Huang also said, “Moving into the first quarter of 2021, we expect our business to be supported by HPC-related demand, recovery in the automotive segment, and a milder smartphone seasonality than in recent years.” For its next quarter outlook, the company provided a top-line revenue guidance of $13 billion.
TSM also announced plans to invest $28 billion towards its advanced chips and increasing plant capacities. During the earnings call, chairman Mark Liu mentioned that the coronavirus pandemic had boosted demand for the company’s chips. This, in part, was because of shortages of semiconductors in video game systems, automobiles, and graphic cards. With the company making major upgrades to its manufacturing infrastructure, investors could see steady long-term growth for TSM stock. Would you agree?
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Stitch Fix Inc.
Stitch Fix operates as an online personal styling service company. The company’s proprietary platform uses recommendation algorithms and data science to personalize each customer’s apparel haul. For one thing, its e-commerce business has and continues to appeal to the general population stuck at home. Accordingly, SFIX stock is looking at gains of over 206% in the past year. In fact, it closed yesterday’s trading session at a new all-time high. Two pieces of news could have caused investors to turn to SFIX stock this week.
For starters, online apparel reseller Poshmark (NASDAQ: POSH) went public on Thursday. POSH stock soared by over 140% on its first trading day, valuing the company at over $7 billion. If anything, this shows that investors are still tuned towards the latest movers in the apparel industry. With the shift towards the digital space, it only makes sense that other online apparel businesses are also in the spotlight. Also, Stitch Fix announced the first round of recipients of its Elevate grant program. Back in October, Stitch Fix set up this program to support minority entrepreneurs in the fashion industry. Besides, Elevate also serves as a means of expanding and diversifying its current offerings. Time will tell if this is truly the win-win situation it appears to be.
In its recent quarter fiscal posted last month, the company reported total revenue of $490.4 million for the quarter. Stitch Fix also recorded about 3.8 million active clients at the time. CEO Katrina Lake explained, “Our powerful personalization engine is evolving, and innovations in our Fix and direct buy offerings will expand our addressable market, deepen client engagement and grow wallet share over time.” With all this in mind, will you consider buying SFIX stock?