Here are the top tech stocks to buy in 2019. These stocks are expected to outperform the market and offer strong returns.
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Introduction
The technology sector has traditionally been one of the best-performing sectors of the stock market, and 2019 is shaping up to be no different. There are a number of factors driving the sector’s growth, including the continued expansion of the global economy, the rise of new technologies like artificial intelligence and blockchain, and the growing demand for cloud-based services.
With that in mind, here’s a look at some of the top tech stocks to watch in 2019:
1. Amazon (AMZN)
2. Alphabet (GOOGL)
3. Facebook (FB)
4. IBM (IBM)
5. Microsoft (MSFT)
Amazon
Amazon (AMZN) is one of the largest tech companies in the world and continues to grow at an alarming rate. Some believe that the company will eventually become a trillion-dollar company. Amazon’s stock has been on a tear in recent years, and there’s no reason to think that 2019 will be any different. The company is continuing to invest in new technologies and initiatives, such as its Amazon Web Services cloud platform, which is growing at a rapid pace.Amazon is also expanding its brick-and-mortar footprint with its acquisition of Whole Foods and its expansion of Amazon Go grocery stores. With so much growth potential, it’s no wonder that Amazon is one of the top tech stocks for 2019.
When it comes to the most popular social media sites, Facebook undoubtedly takes the cake. With more than 2.38 billion monthly active users, Facebook is the largest social media platform in the world. The company continues to grow at an impressive rate, with no signs of slowing down anytime soon.
Facebook’s stock has also been on a tear in recent years, and is up more than 50% since January of 2017. With strong growth prospects and a healthy balance sheet, Facebook is one of the top tech stocks to buy for 2019.
IBM
IBM (IBM) is a large cap stock in the Technology sector. IBM is a holding company that operates through its subsidiaries. The Company’s businesses are global, with operations in more than 170 countries.
IBM offers a cognitive solutions and cloud platform. Its Cognitive Solutions segment includes Watson, a cognitive computing platform that interprets complex natural language queries, and analyzes vast amounts of data to deliver answers and insights. Its Cloud Platform segment delivers technologies that enable companies to build their own cloud platforms. The Company’s enterprise software offerings include middleware and operating systems software, such as WebSphere, database software, such as DB2 and analytics tools, such as SPSS.
The Company’s technology services & support segment includes IT infrastructure and cloud services, such as IaaS; business process outsourcing (BPO), application management services (AMS), and maintenance services. Its technical support services provide enterprise-level support for hardware products and software products from other companies. The Company also develops and sells integrated hardware/software/ Financing offerings for small- and medium-sized businesses (SMBs).
Microsoft
Microsoft Corporation is an American multinational technology company with headquarters in Redmond, Washington. It develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. Its flagship hardware products are the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. As of 2016, it is the world’s largest software maker by revenue,[5] and one of the world’s most valuable companies. The word “Microsoft” is a portmanteau of “microcomputer” and “software”.
Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975, to develop and sell BASIC interpreters for Altair 8800. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by Microsoft Windows. The company’s 1986 initial public offering (IPO), and subsequent rise in its share price,[6] created three billionaires[7] and an estimated 12,000 millionaires from Microsoft employees.[8] Since the 1990s present,[update] Seattle has been home to a growing technological community of entrepreneursand startupswhich expanded rapidly following Microsoft’s relocation there in 1986.[9][10][11][12]
Alphabet (Google)
Alphabet (GOOGL) – Get Report is the holding company for Google and several other smaller entities. It finished 2018 with a market value of $750 billion, making it the fourth most valuable company in the U.S.
Analysts expect Alphabet to report adjusted earnings of $10.67 a share on revenue of $32.17 billion when it releases fourth-quarter results on Thursday, Jan. 31. That would represent year-over-year growth of 21% and 19%, respectively.
The stock has gained 14% over the past 12 months through Wednesday’s close at $1,131.42 and hit an all-time intraday high of $1,296 on July 23. The shares trade for 27 times expected 2019 earnings of $41.75 a share and have a price-to-earnings-growth ratio of 1.3, based on forecasted earnings growth of 32% this year and 24% next year.
NVIDIA
NVIDIA (NVDA) is a leading manufacturer of graphics processing units (GPUs) and used by many gamers to improve their gaming experience. The company has also made inroads into the professional market with its GPUs being used for machine learning and deep learning applications. The stock has risen sharply in recent years, but is still considered a bargain by many analysts with a forward P/E of 25.5 and a five-year PEG ratio of 1.3.
Intel
Intel (INTC) is one of the world’s largest semiconductor chip makers and is a leading manufacturer of microprocessors, flash memory, chipsets, and other semiconductor products. The company’s products are used in a variety of computing and communications applications, including PCs, servers, notebooks, tablets, smartphones, automotive systems, embedded systems, and industrial automation. Intel has a market capitalization of $226.7 billion and is one of the 30 stocks that make up the Dow Jones Industrial Average.
In 2018, Intel was hurt by the slowdown in the PC market and Competition from Advanced Micro Devices (AMD). But Intel has fought back with new chips that offer better performance than AMD’s products. In 2019, Intel is expected to benefit from the launch of new processors based on its 10-nanometer manufacturing process. These new processors should help Intel regain market share from AMD and should also help boost the company’s average selling prices. Intel is also expanding beyond PC chips with its acquisition of FPGA maker Altera. This acquisition should help fuel growth in data center and IoT markets. Analysts are expecting earnings per share of $4.54 for 2019, which would represent year-over-year growth of 9%. Revenue for 2019 is projected to be $71.5 billion, up 3% from 2018.
Conclusion
In conclusion, the top tech stocks for 2019 are Apple, Amazon, Facebook, IBM, and Microsoft. These companies are expected to perform well in the coming year thanks to their strong financials and innovative products.
