3 Top Tech Stocks That Should Continue to See Big Gains in 2021

3 Top Tech Stocks That Should Continue to See Big Gains in 2021

Posted On January 11, 2021 2:56 am

After reporting record gains over the past year, the tech industry is looking at a still more profitable 2021. The tech-heavy Nasdaq composite surged 44.1% over the past year, while the S&P 500 IT index rallied 40.6% over the same period. While these numbers reflect investor sentiment over the trailing 12 months, the highly volatile global markets as a result of the COVID-19 pandemic has wiped out some of this industry’s gains in periods of panic selloffs.

Many investors are speculating that a trend reversal in this sector is in the offing owing to a vaccine-driven economic recovery. However, the rising productivity and deftness of the remote working culture have been lauded by most organizations, implying a permanent shift in the work culture globally. Enterprise Technology, a  research firm, predicts that at least half of the work force will continue working from home in 2021, while Facebook CEO entrepreneur Mark Zuckerberg expects at least 50% of its workforce to work remotely over the next 5-10 years.

This is good news for tech giants such as Apple, Inc. (AAPL – Get Rating), Broadcom Inc. (AVGO – Get Rating), and Micron Technology, Inc. (MU – Get Rating), which have capitalized on this trend by launching state-of-the-art devices and gadgets that are tailor made for remote working.

Apple, Inc. (AAPL – Get Rating)

AAPL has been one of the best performing technology companies for quite some time. It is the largest company in terms of market capitalization (more that over $2.2 trillion) and is one of the big five (of FAANG) tech companies in the United States.

In this age of digitization, AAPL is actively taking steps to be  emerge as one of the top IT companies with an integrated software ecosystem, with higher protection against cybercrime. To this end, the company has launched a new generation of Macbooks with self-developed M1 chips, designed for higher efficiency and safety. Though priced slightly above its previous range, these products have been extremely successful in the markets, while giving the company a solid entry point to the chip manufacturing industry.

The company is reportedly planning to launch self-driving cars in 2024, the news of which was made public on December 22nd. The stock has surged 3.7% to date, following the press release. While the company has so far been focused on tech hardware and software so far, entering the booming EV markets might push it to allow it to reach new highs. While many people are concerned about regarding the potential supply chain and logistics problems AAPL might face in while entering a new industry, the company’s ample resources and distinguished brand loyalty should give it an edge over other EV start-ups.

AAPL’s revenues have improved slightly year-over-year in the fiscal fourth quarter ended September 26, 2020. Gross margin has increased 1.5% from the year-ago value to $24.69 billion. Its EPS for fiscal 2020 ended September 26, 2020 has risen 10.4% year-over-year to $3.31.

A consensus EPS estimate of $0.88 for the ongoing quarter ending March 31, 2021 represents indicates a 37.5% rise year-over-year. EPS is expected to…

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