Top Tech Stocks for March 2021
The technology sector is comprised of businesses that sell goods and services in electronics, software, computers, artificial intelligence (AI), and other industries related to information technology (IT). The sector includes companies with the largest market capitalizations in the world such as Apple Inc. (AAPL), Microsoft Corp. (MSFT), and Amazon.com Inc. (AMZN).
Tech stocks, represented by the Technology Select Sector SPDR ETF (XLK), have outperformed the broader market. XLK has provided investors with a total return of 35.8%, above the Russell 1000’s total return of 21.1% over the past 12 months, as of February 18, 2021. All statistics in the tables below are as of February 18.
Here are the top 5 tech stocks with the best value, the fastest growth, and the most momentum.
Best Value Tech Stocks
Value investing is a factor-based investing strategy in which you pick stocks that you believe are trading for less than what they are intrinsically worth, usually by measuring the ratio of the stock’s price to one or more fundamental business metrics. A widely accepted value metric is the price-to-earnings ratio (P/E Ratio). Value investors believe that if a business is cheap compared to its intrinsic value, in this case as measured by its P/E ratio, the stock price may rise faster than others as the price comes back in line with the worth of the company. These are the stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio.
|Best Value Tech Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Synnex Corp. (SNX)||86.15||4.4||8.4|
|Vontier Corp. (VNT)||31.91||5.4||11.0|
|Intel Corp. (INTC)||61.61||250.3||12.5|
|HP Inc. (HPQ)||26.41||34.1||13.2|
|Arrow Electronics Inc. (ARW)||103.34||7.7||13.8|
- Synnex Corp.: Synnex is a provider of IT supply chain services. It offers a range of distribution, logistics, and integration services to the technology industry. Its core competencies include IT systems and servers, system components, software, communication and security equipment, and consumer electronics. Synnex distributes over 30,000 technology products from manufacturers around the world and provides technology solutions to more than 20,000 resellers and retail customers.
- Vontier Corp.: Vontier is an industrial technology company that provides mobility, diagnostics and repair technologies for a broad range of uses. Vontier serves customers in retail, commercial, and government in the fueling, vehicle repair, and public safety industries. Historically, Vontier was part of Fortive Corp. (FTV). In October 2020, Fortive completed the separation of its Industrial Technologies segment by spinning off Vontier as a separate entity. Vontier began regular-way trading on the New York Stock Exchange on October 9, 2020.
- Intel Corp.: Intel designs and manufactures computer components and related products, including microprocessors, chipsets, embedded processors and microcontrollers, flash memory, graphic, network and communication, and storage products. Intel employs a global workforce of around 110,800 people. Pat Gelsinger became chief executive officer (CEO) on February 15, 2021, succeeding Bob Swan. The company reported falling net income and revenue in Q4 2020, although quarterly revenue exceeded guidance.
- HP Inc.: HP is a global provider of personal computing, imaging and printing products and services. The company’s offerings include desktop and notebook computers, workstations, retail point-of-sale systems, displays, printers and hardware, and support and services. HP serves individual consumers, businesses of all sizes, and government customers. On February 17, 2021, HP announced the appointment of Marie Myers as chief financial officer, effective immediately. Myers had previously served as acting CFO and chief transformation officer. The appointment followed a January announcement of several other changes to executive leadership at the company, including the appointment of Tolga Kurtoglu as chief technology officer.
- Arrow Electronics Inc.: Arrow Electronics is a distributor of electronic components and computer products. The company has roughly 20,000 employees worldwide and caters to more than 180,000 customers in technology manufacturing as well as other industries. For Q4 FY 2020, Arrow reported net sales growth of 15.1% YOY while net income more than doubled YOY.
Fastest Growing Tech Stocks
Growth investing is a factor-based investing strategy in which you invest in businesses that you believe will grow significantly faster than the market as a whole. There are different growth metrics, but one of the most widely used is growth in profits, as measured by earnings per share (EPS). Growth investors believe that if a company consistently grows profits faster than the market as a whole, its stock price will rise as investors seek to get a share of future profits. These are the stocks with the highest YOY EPS growth for the most recent quarter.
|Fastest Growing Tech Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)|
|Corning Inc. (GLW)||37.56||28.9||2,700|
|DXC Technology Co. (DXC)||25.49||6.5||1,240|
|Advanced Micro Devices Inc. (AMD)||88.64||107.4||866.7|
|Fortive Corp. (FTV)||66.69||22.5||548.1|
|Dynatrace Inc. (DT)||52.99||15.0||500.0|
- Corning Inc.: Corning is a materials science technology company operating in the areas of glass, ceramics, and optical physics. The company’s products include glass products for mobile devices and advanced displays, optical fiber, wireless technologies, and clean-air technologies for vehicles. Corning serves customers in the optical communications, mobile consumer electronics, display, and automotive industries.
- DXC Technology Co.: DXC Technology is a provider of information technology services and products. DXC targets IT modernization including both on-premises and cloud services, as well as data-driven operations and workplace modernization. The company serves 6,000 customers across the private and public sectors globally. For its Q3 FY 2021, ended December 31, 2020, DXC Technology reported a revenue decline of 14.6% YOY while net income increased by more than 12 times YOY. Despite the revenue decline YOY, revenue for the quarter nonetheless exceeded guidance.
- Advanced Micro Devices Inc.: Advanced Micro Devices is a global semiconductor company. AMD sells microprocessors, chipsets, graphics processing units (GPUs), development services, server and embedded processors, and technology for game consoles. For Q4 2020, AMD reported strong growth in net income on a 52.5% YOY increase in revenue. Revenue growth was driven by the Computing and Graphics segment and the Enterprise, Embedded and Semi-Custom segment.
- Fortive Corp.: Fortive is a diversified industrial company that makes products related to field instrumentation, transportation, sensing, and automation. Fortive also makes products related to intelligent operating solutions, precision technologies, and advanced healthcare solutions. Fortive employs a team of roughly 17,000 employees in more than 50 countries.
- Dynatrace Inc.: Dynatrace is a software development company. The company provides a software intelligence platform utilizing cloud and artificial intelligence technologies. On February 10, Dynatrace announced that it had added a Cloud Automation Module to its platform. The module is expected to facilitate the automation of code tests and quality checks.
Tech Stocks with the Most Momentum
Momentum investing is a factor-based investing strategy in which you invest in a stock whose price has risen faster than the market as a whole. Momentum investors believe that stocks which have outperformed the market will often continue to do so, because the factors that caused them to outperform will not suddenly disappear. In addition, other investors, seeking to benefit from the stock’s outperformance, will often purchase the stock, further bidding its price higher and pushing the stock higher still. These are the stocks that had the highest total return over the last 12 months.
|Tech Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Cloudflare Inc. (NET)||82.79||25.6||373.1|
|Enphase Energy Inc. (ENPH)||180.84||23.3||350.2|
|CrowdStrike Holdings Inc. (CRWD)||239.25||52.9||262.3|
|Fastly Inc. (FSLY)||80.20||9.1||251.8|
|Zscaler Inc. (ZS)||223.38||30.0||249.8|
|Technology Select Sector SPDR ETF (XLK)||N/A||N/A||35.8|
- Cloudflare Inc.: Cloudflare is primarily an Internet security company. It provides a global cloud platform that offers a range of network services, including reliability, advanced security, video streaming and delivery, and domain registration. The company handles 21 million HTTP requests per second on average and serves data from 200 cities in more than 100 countries worldwide. Cloudflare’s revenue increased by 50.0% YOY for Q4 2020. For that period, the company reported a net loss of $34.0 million versus net loss of $28.2 million for Q4 2019.
- Enphase Energy Inc.: Enphase Energy is a renewable energy company that provides energy management solutions. It designs and manufactures solar panels, energy storage, and other products. The company employs more than 800 people worldwide and operates in 21 countries. Enphase reported falling net income despite strong growth in revenue in Q4 2020.
- CrowdStrike Holdings Inc.: CrowdStrike provides a cybersecurity platform to protect enterprises and prevent endpoint cyberattacks. Its security solutions are used by major global companies, including banks, healthcare providers, and energy companies. The company serves more than 5,000 customers worldwide.
- Fastly Inc.: Fastly is a provider of real-time content delivery network services. Its Edge cloud platform enables developers to run, secure, and deliver websites and applications and delivers more than 15 trillion log lines per month. Fastly’s platform handles hundreds of billions of internet requests each day.
- Zscaler Inc.: Zscaler is a global security software company offering a cloud-based platform that provides web and mobile security, threat protection, cloud application visibility, and networking solutions. The company operates over 150 data centers worldwide and processes up to 140 billion transactions per day during peak periods.
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