New Tech Stocks To Buy In 2017 __TOP__
The year 2022 was a lousy one for the stock market. Even after factoring in dividends, the S&P 500 fell 19.4% in those 12 months, while the tech-heavy Nasdaq composite took a 33.1% haircut. The catalysts behind Wall Street's sell-off are all too familiar: Inflation, soaring interest rates, persistent recession fears and the Russia-Ukraine war snowballed into an avalanche of worries that investors couldn't ignore, and many previously high-flying stocks took a beating as the "risk off" mindset came to dominate markets. This, thankfully, provided a window of opportunity for investors to snap up great companies at a discount entering the new year.
new tech stocks to buy in 2017
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Before each new year, U.S. News selects 10 stocks to buy for the year ahead. Here's a rundown of the 10 best stocks to buy for 2023 and how each has fared thus far based on total returns, which include dividends:
First up is Apple, the largest publicly traded company in the world, if you exclude government-backed behemoths such as oil giant Saudi Aramco. Like other tech stocks, AAPL shares had a rough go of it in 2022, as recession fears and soaring interest rates spooked investors in the sector. Following a rare 26.4% pullback in 2022, Apple now trades at 26 times earnings, offering investors a sound entry point into the $2.5 trillion iPhone maker. Although its most recent earnings report technically missed expectations, that was more due to supply chain snarls than demand issues. In fact, Apple reported an active-installed base of more than 2 billion devices, and revenue in its high-margin services segment surpassed $20 billion. AAPL stock is bouncing back from its 2022 woes, with shares up 22.5% in 2023 through March 23.
Taiwan Semiconductor Manufacturing, a $500 billion business and the dominant high-level foundry for advanced chips, is next on the list. In the semiconductor industry, foundries are companies that manufacture chips for other companies, and TSM enjoys a massive market share for chips 7 nanometers and under. Apple, which has started to shift its supply chain away from China, is one of TSM's biggest customers. The company reported fourth-quarter results that beat both top- and bottom-line expectations, with revenue jumping 43% and earnings per share surging 78%. Trading at just 14 times earnings and paying a 2% dividend, TSM is, incidentally, yet another Buffett holding, and its shares have been crushing it in early 2023, posting gains of 27.7% through March 23. TSM is the best-performing stock among the best stocks to buy so far in 2023.
Tech stocks delivered an uncharacteristically sluggish performance in 2022. The Technology Select Sector SPDR ETF (ticker: XLK), a popular exchange-traded fund, lagged behind the S&P 500 by about 10% last year as investors rotated from growth stocks to value stocks. For more than a decade, brief periods of tech sector underperformance have consistently been long-term buying opportunities, and tech stocks have once again tipped back toward outperformance so far in 2023. Inflation and interest rates remain headwinds for tech stock valuations in the near-term, however, making stock selection critical.
Nvidia designs and sells high-end graphics and video processing chips used for desktop and gaming computers, workstations, and other advanced computing servers and supercomputers. Not only is Nvidia one of the best-performing stocks in the entire market in the past 15 years, its year-to-date gain of 63.5% through March 3 is the best performance of any stock on this list so far in 2023. Zino says he is bullish on Nvidia's data center momentum, its opportunities in the central processing unit, or CPU, market and its investments in generative AI. CFRA has a "buy" rating and $250 price target for NVDA stock.
Accenture is a global information technology services firm that specializes in consulting and outsourcing. Holt says Accenture has a loyal client base, a solid balance sheet and a long track record of peer-leading earnings growth. Exposure to Russia and foreign exchange headwinds have weighed on that growth in the past year, but Holt says Accenture's underlying business remains strong. He says Accenture is a long-term market share gainer, and roughly $7 billion in capital returns in fiscal 2023 will also help support the stock. CFRA has a "strong buy" rating and $333 price target for ACN stock.
Investing in technology is risky. Tech companies often succumb to competitive pressures as rivals pump out similar products faster and more cheaply. Other firms flop when their inventions turn out to be too far ahead of their time. And sometimes the emergence of new technologies renders their products obsolete. You may have to contend with steep valuations, too, as euphoria for new technologies sends stocks soaring far beyond what their earnings will ever justify.
In the auto industry, the biggest potential gains belong to the companies supplying carmakers with artificial-intelligence brains, semiconductors and sensing technology. At the forefront of this trend is chip maker Nvidia. The company has long dominated the market for powerful graphics-processing chips that are used in computers and video-game systems. Now those processors are becoming hot sellers in the car market, too.
Built through a series of mergers, Broadcom sells a wide assortment of chips, sensors and other high-tech gear, much of it related to wireless communications, data storage and networking.
Microsoft is now plowing that cash into high-growth areas, such as its thriving cloud-computing business (Azure), a new machine-learning division, and products for the Internet of Things. All told, Microsoft should benefit from most of the major tech trends, says Bank of America Merrill Lynch.
But, tech has largely outperformed the general market in 2017, and Golub said that it will likely continue to do so after the rotation. Golub points out that the tech sector is in the top four sectors for revenue growth, earnings growth, and return on equity.
On Tuesday, Golub pointed out that the tech sector is only slightly more expensive than the rest of the market on a price-to-earnings ratio basis. Tech has a P/E ratio of 19.8, while the S&P 500 currently has an 18.2 P/E ratio. At the end of 1999, before the tech bubble burst, the ratio for the tech sector was nearly double that of the general market.
While some millennials surely spent 2017 swiping through dating apps and posting selfies on social media, an increasing number of them started investing for their futures. The bad news is, they don't seem to be very good at it.
In 2017 Robinhood, the trading app popular with millennials, users tended to buy well-known consumer names. Some of their picks, mainly the big tech companies, did well, but six of the 10 most popular stocks on Robinhood last year ended the year lower than they started.
Tech stocks tended to give millennials the best returns, with Amazon, Apple, Facebook, Nvidia, and Tesla resulting in the biggest dollar gains for Robinhood users. Those who invested in AMD, GE and Snap saw some of the biggest losses, the company told Markets Insider in an email.
Users of the Stockpile app, which allows users to buy fractional shares of expensive companies, saw similar trends from its users in 2017. Its top stock was Amazon, followed by Bitcoin Investment Trust, a fund that seeks to track the price of bitcoin.
"We're finding that millennials like to buy stocks of companies they know and whose products and services they use personally, or aspire to use. So Amazon, Snapchat, Facebook, Tesla all make sense." a Stockpile spokesperson told Markets Insider. "As far as Bitcoin, many millennials see this as a growth opportunity created by their generation and something they can get in on early."
Alphabet remains the strongest performer within our theme, with its stock up about 56% year-to-date. On the other side, Magnite (MGNI), an ad technology company focused on the connected TV space, has seen its stock decline by about 1% year-to-date.
Unlike high-growth software and cloud stocks which have seen a correction this year, advertising players are faring well as companies are likely to scale up ad budgets as the economy continues to open post-Covid. Moreover, marketers are likely to accelerate the shift of their ad budgets from traditional channels to digital channels as customers are possibly more receptive to digital ads following the pandemic, which saw people go online to work, learn, shop, and entertain themselves. The global digital advertising market is expected to grow by around 20% this year to over $450 billion in 2021, per eMarketer. Digital ad spending is expected to account for over 60% of overall media ad spending worldwide, up from just 46% three years ago. [1] Below is a bit more about the stocks in our theme and how they have been faring this year.
Magnite (MGNI), an ad technology company focused on the connected TV space, has seen its stock rise by about 19% year-to-date, driven by robust quarterly results and an increasing shift of advertising from linear TV to digital streaming services.
Apple took the top spot in the tech group weeks after shares hit a new record high, reaching over $147 per share for the first time on May 2 despite disappointing iPhone sales. For the past year, Apple saw $217 billion in sales, $45 billion in profit, $331 billion in assets and a market cap of $752 billion.
Apple is not only the largest tech company in the world, but also also the 9th largest company in the world. Though the company returns to the global top ten, Apple sits one spot lower than it did it 2016, where it ranked as the 8th largest company in the world.
Fifteen of the top 25 largest tech companies are from the United States, with eight in the top 10: Apple, Microsoft , Alphabet , IBM , Intel , Cisco Systems , Oracle and Facebook , which rose 69 spots on the Global 2000 list.
New to this list this year is Snap, Inc., the biggest social media IPO since Twitter went public three years ago. The company recently went public in March and is ranked the 101th largest tech company, and 1,693rd largest company in the world. Other tech newcomers include South Korea's SK Holdings Co., Ltd. (a top 25 tech finisher), Dell Technologies , industrial growth company Fortive and semiconductor company Advanced Micro Devices , Inc. 041b061a72