Do You Have These Top Tech Stocks On Your February Watchlist?
As we moved into 2021, some investors likely wondered if tech stocks would continue to perform. Well, some of the top tech stocks led the broader market over the last few months. According to Howard Silverblatt, a senior S&P Dow Jones index analyst, three tech companies led the S&P 500 in terms of gains. Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Microsoft (NASDAQ: MSFT) accounted for more than half of the index’s total returns. This alone would be enough to convince new and seasoned investors alike of the industry’s growth potential this year. But, before you go diving in, it would be better to take a closer look at what makes the best tech stocks tick.
A prime example would be Google’s parent company, Alphabet (NASDAQ: GOOGL). Firstly, and quite obviously, the tech giant produces quality tech. What’s more important is how it has diversified its portfolio through the medium of tech. It is now the company behind, a world-class search engine, one of the largest smartphone operating systems in the world, a prime social media platform in Youtube, and recently, an autonomous vehicle public service. Unsurprisingly, Bank of America (NYSE: BAC) has given GOOGL stock a “buy” rating and a $2150 price target.
As the world of tech is constantly evolving, innovative players are often the ones that adapt to shifting trends the best. If you are looking for such stocks, take a look at these few making moves lately.
Best Tech Stocks To Watch Right Now
- Nokia (NYSE: NOK)
- CACI International Inc. (NYSE: CACI)
- Limelight Networks Inc. (NASDAQ: LLNW)
- Docusign Inc. (NASDAQ: DOCU)
Finnish multinational telecom company Nokia is currently making waves on the stock market. Notably, the company is a part of the group of stocks being short-squeezed this week. Amidst the current hype, NOK stock climbed more than 38% yesterday. Unlike most of the other companies being boosted now, Nokia actually had some big news along with its current gains.
On January 27, Nokia announced that it launched the world’s first 1 terabit 5G-enabled network in Finland. This was achieved with the help of its long-standing partner, local telecom and digital services company, Elisa. Given the growing demand for 5G services in Europe, I’d say that Nokia is making a great play here. In detail, Elisa upgraded its existing routing system nodes with 1 terabit interface powered by Nokia’s chipsets. Given that most networks operate on less than half the scale being deployed, Nokia is providing solutions for the future. Understandably, investors could be keen to jump in on this top 5G stock ahead of the pack.
In its recent quarter fiscal posted in October, the company reported bringing in $6.39 billion in total revenue. Nokia also saw a 44% increase in cash on hand year-over-year which added up to over $8.27 billion. Given all of this, will you be adding NOK stock to your watchlist?
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CACI International Inc.
Next up, we will be looking at multinational software giant CACI. The Virginia-based IT company is often compared to the likes of Palantir (NYSE: PLTR). As expected, this is because it provides services to many branches of the U.S. federal government. Surprisingly, CACI stock has been mostly trading sideways posting gains of about 7% so far this month. Could the company’s recent announcements change that moving forward? I’ll let you decide.
After yesterday’s closing bell, the company reported its second-quarter earnings. The company posted revenue of over $1.4 billion for the quarter. It also saw a 34% rise in net income year-over-year and posted quarterly earnings of $4.18 per share. The company cited strong operating performance, favorable contracts, and lower indirect costs as factors for this growth. Throughout the quarter, CACI was awarded up to $2.1 billion in contracts.
Impressive quarter aside, the company also made a big announcement earlier in the week. On Tuesday, CACI revealed that it had been awarded a three-year contract by the U.S. Army. The three-year task order comes with a ceiling value of $96 million. CACI will be providing its engineering and logistical expertise for the army’s Medical Communications for Combat Casualty Care (MC4) Program. With strong financials and a steady flow of contracts, do you think CACI stock is in for big gains this year?
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Limelight Networks Inc.
Limelight is an Arizona-based company that provides content delivery network (CDN) services. Simply put, CDNs help users around the world view the same high-quality content at top speeds. Considering that more people are consuming digital content now than ever, Limelight should be busy. In fact, since appointing a new CEO on January 21, LLNW stock is looking at gains of over 20%
In detail, former Alert Logic CEO Bob Lyons will be the new CEO of Limelight, effective February 1. Board member Walt Amaral said, “His (Lyons) passion for the customer and demonstrated track record of building high performing, innovative organizations aligns very well with our strategic objective to build on our current strengths and become a leader in delivering edge-based solutions,” Lyons reportedly led Alert Logic through a multi-year reposition, turning the company into a global leader in cybersecurity. Time will tell if this move pays off for LLNW stock in the long run. But, for now, investors appear to be watching it closely.
Limelight also reported robust growth in its recent quarter fiscal back in October. It raked in total revenue of $59.24 million for the quarter. On top of that, it also saw a 406% jump in cash on hand year-over-year. All in all, do you think LLNW stock is a top tech stock to watch?
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Fourth, we have DocuSign. Most would consider DOCU stock as a top work-from-home stock. This is because the company allows organizations to manage electronic agreements remotely through its eSignature service. DocuSign does so via its proprietary cloud platform that operates on various devices. DOCU stock has exploded since most offices had to transition towards working from home. Since the March selloffs, the company’s shares have tripled in value. Given its current valuation, investors may be curious to see if it has more room to grow.
Well, DocuSign is not resting on its laurels just yet. In a recent blog post from the company, DocuSign announced a new partnership with the California Association of REALTORS (CAR). As a result, CAR’s members will now have access to all necessary real estate documents in an all-in-one cloud. The “DocuSign Rooms for Real Estate” streamlines real estate transactions for customers and agents alike.
For a sense of scale, CAR completed over 4.9 million residential transactions in 2020. Through this strategic move, DocuSign is gaining exposure to a wide range of clients. If the company plays its cards right, I could see DOCU stock maintaining its current momentum this year. Would you say the same?