Do You Have These Top Tech Stocks On Your Watchlist This Month?
Tech stocks have been among the top performers on the stock market. Any regular reader of StockMarket.com will tell you this. In fact, most seasoned investors would share this sentiment as well. This is because of the broad array of tech companies out there. Whether it is a new iteration of existing tech or something entirely novel, most investors can find a tech stock that suits their portfolio. Likewise, investors have turned to the top tech stocks in good and bad times. Some would even go as far as to say that they are a safe haven in the stock market today.
To some degree, you could say that some of the top tech stocks of 2020 were paramount in helping us through the pandemic. For example, the likes of DocuSign (DOCU Stock Report) and Slack (WORK Stock Report) helped with keeping digital offices running. Alternatively, companies such as Spotify (SPOT Stock Report) and Netflix (NFLX Stock Report) kept us thoroughly entertained in our free time. Even as we begin to see the light at the end of the tunnel, the pandemic is still far from being over. In that time, the world of tech will continue to grow and innovate. Correspondingly, we could be seeing new and old tech companies alike tearing through the stock market this year as well.
Reading until this point, you could be thinking, which are the best tech stocks to buy now? Most tech investors likely ask themselves this regularly. With several fast-moving sectors such as artificial intelligence, cybersecurity, and cloud computing, it can be overwhelming. To help you out, here is a list of trending tech stocks making waves in the market this month.
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Top Tech Stocks To Watch Now
- TAT Technologies Ltd. (TATT Stock Report)
- Apple Inc. (AAPL Stock Report)
- Snowflake Inc. (SNOW Stock Report)
Top Tech Stocks To Watch This Month #1: TAT Technologies Ltd.
First off is TAT Technologies (NASDAQ: TATT). In brief, TAT is an Israel-based company that provides aerospace components along with maintenance, repair, and overhaul (MRO) services. It does so for the commercial and military aviation industries. More importantly, TATT stock jumped by 29% yesterday. A new strategic contract could be the reason behind this jump. However, it took a breather this morning, falling 11% as at 10:00 a.m. ET.
On Tuesday, TAT announced that it entered into a 10-year agreement with Honeywell International (HON Stock Report). The collaboration will see TAT exclusively handle worldwide rental services of Honeywell’s Auxiliary Power Units (APUs). This is big news as these APUs are installed in all Boeing 777 aircraft around the world. TAT subsidiary TAT Piedmont will be handling all rental requests by airlines who operate with Boeing 777 aircraft. CEO Igal Zamir said, “This agreement is a significant step in the development of TAT-Piedmont as a major global player in the APU MRO services business. The GTCP331-500 APU engine which is installed in all Boeing 777 aircraft around the world is expected to be in operations for the next few decades generating meaningful MRO business opportunities.” Generally, I’d say the current hype around TATT stock is not unwarranted.
For one thing, TAT performed relatively well considering how the aerospace industry was affected by the coronavirus pandemic. In its third-quarter fiscal posted in November, the company saw total revenue of $16.82 million. This was followed by a 43% jump in cash on hand year-over-year. Given its current arrangement with Honeywell, I’d say the company is in a great spot now. In a post-pandemic world, TAT could be looking at monumental gains as the tourism industry picks up. Could TATT stock be looking at long term gains? You tell me.
Top Tech Stocks To Watch This Month #2: Apple Inc.
Our next entry needs no introduction because it is Apple (NASDAQ: AAPL). AAPL stock had one of its best years on the stock market in 2020. For some perspective, AAPL stock is up by over 100% since the stock market crashed in March. Tech investors are likely wondering if it can outdo this performance in 2021.
In recent news, it was reported that Apple generated $1.8 billion in App Store sales in the week between Christmas Eve and New Year’s. Moreover, it now has an estimated 90 million monthly active users on its Apple Books app. All in all, Apple generated $53.8 billion in revenue throughout its fiscal 2020 just from its services. These numbers are phenomenal considering that the world is still going through a pandemic. Understandably, the pandemic has resulted in more people staying home for the majority of the last year. This meant that people were more likely to spend money on online services such as books and games which Apple readily provided. Current estimates say it could take months to vaccinate the general population. In that time, the company could continue to reap the benefits from the coronavirus tailwind. As such, investors may see long-term growth potential in the tech giant still.
In its fourth-quarter fiscal posted last October, the company reportedly brought in $64.7 billion in total revenue. Moreover, it ended the quarter with $38.02 billion in cash on hand. If there’s one thing Apple has, it is money. But, seasoned investors will know that how a company uses its funds is more important. With its first-quarter fiscal slated for January 27, I would not be surprised if investors are watching AAPL stock closely. Will you be doing the same?
Top Tech Stocks To Watch This Month #3: Snowflake Inc.
Topping off our list is Snowflake (NYSE: SNOW). For the uninitiated, Snowflake is a cloud-based data-warehousing company. It went public last September at $120 a share and raised $3.9 billion making it the biggest software IPO to date. SNOW stock hit its current all-time high on December 8 but has since fallen 31%. Given its high valuation, the stock is trading at about 70 times next year’s sales. If anything, Snowflake seems to have ambitious goals moving forward, time will tell if it can meet those goals.
By all means, its primary data warehouse-as-a-service business is a vital aspect of digital acceleration. As we all know, this was and still is a step that many businesses are forced to take amidst the current pandemic. The numbers from Snowflake’s recent quarter fiscal provide solid evidence of this. Its product revenue surged by 115% year-over-year. At the same time, it saw a net revenue retention rate of 162% in the quarter. In other words, Snowflake is not only getting new clients but is also providing quality services for its existing ones. Naturally, with such a successful opening quarter as a public company, investors would be keen to see what lies ahead for SNOW stock.
Yesterday, Snowflake joined the National Association of State Procurement Officials (NASPO) ValuePoint Cloud Solutions contract. Notably, the contract is held by one of the largest private IT software and services companies, Carahsoft Technology Corp. Now, Carahsoft can employ Snowflake’s cloud platform and services to participating states, local governments, and educational institutions. This is a fantastic play by Snowflake as it has the unique opportunity to establish itself as an asset to government organizations. Should the company play its cards right, we could be looking at exciting times ahead for SNOW stock.