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Tech Stocks

Tech stocks are the darlings of the market. Hot IPOs, venture capital, revolutionary ideas... it’s all so BIG. Tech stocks are the quarterback of the market football team. They’re the star of the market movie. And the best tech stocks can turn your portfolio into tropical vacations, new cars, and luxurious evenings at your favorite restaurants.

But for every profitable tech stock, there’s a dark, sinister doppelganger that’s ready to eat your money and laugh at your misery. Okay, maybe that’s an exaggeration. Still, the world of tech is vast and volatile. You don’t get fast, seemingly unlimited growth without a share of risk.

Further, there isn’t one type of tech company, either. So “tech stocks” could be biotech, financial tech, educational technology, engineering software, and so on. The common thread is that they are technology companies first, and then they specialize from there.

They can also be some of the biggest names in the economy or micro-cap startups. But when you put all those differences aside, the best tech stocks all share some common traits.

As a whole, technology stocks have been moving up faster than the general market. The Information Technology sector of the S&P 500 has been the index’s top-performing sector for the past 10-year, 5-year, 3-year, 1-year, and year-to-date periods, outperforming the Nasdaq by well over triple-digit percentages in some cases.

In the future, there is a good chance tech sector performance will be even more dominant than it has been. So how do you get in on this?

The best tech stocks, or for that matter, the best stocks in any industry, have a few common traits:

  1. The company has a product, service, or business model that is revolutionary.
  2. Their offering has mass-market appeal.
  3. The company has plenty of room to grow and is likely already fast-growing.
  4. The stock has strong RP lines, positive earnings, and reasonable valuation (meaning it’s not overpriced).
  5. And last but not least, it has a stock that’s trending up, indicating that investors’ perceptions of the company are improving—this is important because perceptions are always at least as important as reality.

While they might seem “boring,” there are plenty of older tech stocks that also pay dividends, which is almost always a good indicator of a quality stock. (Just be aware that a dividend alone doesn’t make a stock a good purchase. There are dividend stocks out there hanging on by a thread and don’t have very promising looking futures.) Microsoft (MSFT), International Business Machines (IBM) and Qualcomm (QCOM) are a few dividend-paying tech stocks that come to mind as being particularly reliable over the years.

If you need help finding the best tech stocks, subscribe to any one of our 19 investment advisories, where our analysts routinely pick winning stocks and options trades that beat the market year in and year out.

Tech Stocks Archives
The tech sector is propping up this market, but there are plenty of cheap technology stocks still out there. And these two will lead a coming revolution.
We don’t normally think of technology stocks as being “cheap.” But there are a lot of bargain tech stocks out there now. Here are two I like.
Rare earths and strategic metals are critical for next-generation energy and technology, which makes these rare earths stocks critical for America’s rivalry with China.
Autonomous driving is a $556 billion industry waiting to explode. But these self-driving car stocks are already taking off.
Artificial intelligence is one of the fastest-growing markets in the world, and artificial intelligence stocks have benefitted.
Greentech stocks are heavy on innovation, and no clean energy “holy grail” is quite as exciting (or achievable) as superhot rock.
Semiconductor stocks have taken it on the chin this year, but these 3 are poised to benefit from the transition away from silicon.
The 5G technology revolution is almost here. And that means it’s time to add these three wireless stocks to your portfolio.
You don’t hear much about it anymore, but the Internet of Things (IoT) affects many aspects of our lives. With that in mind, here are 3 IoT stocks to buy.
The rise of financial technology has been a positive theme of late. With that in mind, these five fintech ETFs are worth your consideration.
The global trend toward financial technology has made fintech stocks a hot commodity. Here are seven worth your consideration.
Datadog (DDOG) and Dynatrace (DT) are my two favorite cloud computing stocks. Which is the better buy now? Let’s break it down.
In the latest installment in my series on demographic trends, here are three technology stocks that are plays on where the industry is trending.
Nvidia has surpassed Intel as the largest semiconductor company by market cap. So let’s break down Intel vs. Nvidia stock.
Are virtual reality stocks a virtual bust? Or could there be a real, vibrant future for investments in the world of the not real?