Top 5 Tech Stocks to Add to the Portfolio
One of the keys to successful investment is to keep an eye on trends and trend in the investment world implies to fields that advance quickly. And what is the fastest developing field nowadays? Well, technology. Programmers and engineers spend days and nights to come up with something new and their efforts do not go wasted.
The world basically breathes technology, there is no field or sector that can operate without either tangible or intangible technology. These circumstances of course, create favorable conditions for tech-related companies to grow.
Investors, on their turn should make the best from this situation. Technology is a wide term and there are five main categories that fall under this huge umbrella: network, internet, software, hardware and semiconductors. Each of these sub-fields has companies that prevail the market and promise high returns to investors. This article will cover the best tech stocks that should be a part of every investor’s portfolio. You can also read our related article on the benefits and risks of foreign stocks investment.
What are the top 5 tech stocks to add to your portfolio?
- Network: Extreme Networks
- Internet: Facebook
- Software: Veeva Systems
- Hardware: Seagate Technology PLC
- Semiconductors: Lam Research Corporation
1. Network: Extreme Networks (NASDAQ:EXTR)
The main goal of extreme network is to make communication over long geographical distances easier than it ever has been. Through specialized hardware and high-powered software Extreme Networks doubles the speed of connection. The company updates its tools very frequently, thus offering its clients new tools that effectively respond to the challenges that keep emerging. Being on the top of network security stocks, extreme network has increased the shares 160% in just over a year. In a word, extreme networks should be go-to option for investors who look for diversity.
2. Internet: Facebook (NASDAQ:FB)
It is no surprise that social media has become one of the most profitable aspects of Internet. 1.9 billion people use Facebook every month, with this demand, Facebook definitely does not lack revenue. Facebook boosted its sales from $777 million in 2009 to $26.8 billion in 2016, and net income rose from $229 million to $10.2 billion over the same period. These numbers are very impressive and no investor can resist the temptation of being a Facebook shareholder and they should become one. Moreover, Facebook is not just getting lucky, no one expects its sales to go down. As a matter of fact, Wall Street anticipated that in 2018 the earnings will increase in 24%. This is a signal for investors to purchase Facebook stocks immediately.
3. Software: Veeva Systems (NYSE:VEEV)
Veeva Systems is one of the best companies that offers cloud-based software designed for specific industries. Veeva seeks to satisfy the needs of its customers by creating special software for them, so that they can enjoy the advantages of modern cloud-based applications. Since 2012 Veeve System experienced sales increase of 43% per year. Why investors should trust Veeva Systems? Well, the experienced board of Veeve Systems will make sure that the company does not face downturns that can harm the investors.
4. Hardware: Seagate Technology PLC (NASDAQ: STX)
Along with the well-known giants of hardware like Apple, Seagate Technology holds a good reputation. This company designs and sells hard disk drives for enterprise applications, data backup systems, external storage systems and digital media systems. The total market value of shareholders is $10 billion. Seagate is usually referred to as the most trustworthy storages of all times and it could also be considered a trustworthy keeper of investments.
5. Semiconductors: Lam Research Corporation (LRCX)
Semiconductors are usually the last resort of tech investments. However, it has proven to be stable and cost-effective in the market. Lam Research Corporation designs and manufactures semiconductors that are the leading suppliers of front-end wafer processing equipment in the world. Having the revenue of $2.15 billion and sales growth of 36%, Lam Research Corporation provides its investors with high returns.
Investors need to be observant and attentive to catch potential winner stocks. Technology is a spotted and tested field for investors to generate passive income. Above were some of the titans of their respective fields and diversifying portfolio with these stocks could result in high dividends. To get a wider perspective, read our article on the most expensive stocks in the world.