Do You Have These Tech Stocks On Your January 2021 Watchlist?
How will tech stocks fare in the stock market this year? As we usher in the new year, the reality is that the coronavirus pandemic has created big tailwinds for many tech companies. By looking at the S&P 500 Information Technology index, you see that it went up by 42.21% in the last year. This has shown how well the tech industry has weathered through the pandemic. As we approach a new digital age in the wake of the pandemic, top tech stocks could continue rising.
We have come to embrace tech completely in the last decade. Based on a Pew Research Center survey, it was noted that 81% of Americans own a smartphone. If you were reading this article, it is likely from a PC, smartphone, or tablet. We do our shopping online through various e-commerce platforms like Shopify (SHOP Stock Report) and Amazon (AMZN Stock Report). We have the latest gaming consoles from tech companies like Sony (SNE Stock Report) and Microsoft (MSFT Stock Report). Virtually, almost anything you can do today, be it work or play, is elevated by a tech company. If anything, the pandemic only catalyzed the adoption of tech.
With reports on how the vaccine distribution in the U.S. is touted as ‘too slow’, it could take months to years before the country can adopt herd immunity. Demand for the latest tech offerings could spike even further this year for these reasons. With that in mind, do you have a list of the best tech stocks to watch as the market kicks off 2021?
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Top Tech Stocks To Buy Right Now
Top Tech Stocks To Buy [Or Sell]: Teledyne Technologies
Teledyne (NYSE: TDY) is a tech company that provides enabling technologies to sense, transmit, and analyze information for industrial growth markets. These markets include aerospace, defense, automation, medical imaging, and pharmaceutical research to name a few. Teledyne has just announced that it will acquire FLIR Systems (FLIR Stock Report) in a cash-and-stock deal valued at about $8 billion. FLIR Systems is the world’s largest commercial company specializing in the design of thermal imaging cameras.
Executive Chairman of Teledyne, Robert Mehrabian had this to say on the acquisition, “At the core of both our companies is proprietary sensor technologies. Our business models are also similar: we each provide sensors, cameras, and sensor systems to our customers. However, our technologies and products are uniquely complementary with minimal overlap, having imaging sensors based on different semiconductor technologies for different wavelengths. For two decades, Teledyne has demonstrated its ability to compound earnings and cash flow consistently and predictably. Together with FLIR and an optimized capital structure, I am confident we shall continue delivering superior returns to our stockholders.” This would of course play well for the company as it widens its sensor technology portfolio.
The company has also just released its preliminary results for its fourth-quarter financials today. Management expects to report sales of approximately $800 million. Teledyne also expects its earnings per share to be in the range of $3.16 to $3.19, a record for any quarterly period since the company’s inception. With all things considered, would this be enough for you to buy TDY stock?
Top Tech Stocks To Buy [Or Sell]: Netflix
Netflix (NASDAQ: NFLX) has solidified its name and brand as a household name last year. It is the go-to online streaming platform after all. The company is known for its wide selection of TV series and movies across genres. Netflix is not only a content platform but it is also a production company that boasts many amazing titles. The company’s shares are up by over 8% in the last month. However, the stock appears to be taking a breather this morning, falling 2% as at 10:25 a.m. ET.
The company has enjoyed unprecedented growth last year. In its latest quarter financials in October, Netflix saw its revenue grow by 22.7%, to $6.43 billion. In the same period, the company saw its global streaming paid memberships grow by 23.3% to 195.15 million. These subscriber additions will no doubt drive Netflix’s business model. The company could be trying to maximize its subscription growth while its video-streaming market is expanding rapidly.
Netflix has been building its portfolio of original TV series and movies in the last few years to sustain its subscriber growth and also keep existing customers loyal. This can be seen in how the company had added 2.2 million net memberships in its third quarter and reports a healthy retention rate for its subscribers. The company has also made headways into India, the fifth-largest economy in the world through various partnerships. With such an exciting development for the company, will you have NFLX stock in your portfolio?
Top Tech Stocks To Buy [Or Sell]: Fastly
Fastly (NYSE: FSLY) is a tech company that focuses on cloud computing services. With expectations for websites and apps at an all-time high, users will need them to be fast, secured, and highly personalized. The company boasts a powerful edge cloud platform that allows developers to get the tools they need to build the latest apps. Fastly shares are up by over 280% since a year ago.
In the company’s latest quarter financials posted in October, Fastly reported a revenue growth of 42% year-over-year at $61 million. The company is also expanding its infrastructure at an amazing pace thanks to the influx of traffic and revenues in 2020. The company’s services were in high demand as the media industry was moving online last year.
How will it sustain its growth in 2021? Streaming media and services have been growing all around the world, and they rely on CDN services from the likes of Fastly in order to deliver smooth video experiences. The aggressive growth that this market is showing will in turn sustain Fastly’s growth in the years to come. All things said, will you consider FSLY stock as a top tech stock to buy?