If you have started your research on various stock investment opportunities then you definitely saw the word technology a lot. You might ask yourself, is technology really a big deal in the investment market? The answer is definitely YES. However, before we go any further, let us first break down technology itself.
We refer to technology as a reflection of scientific knowledge on a certain product that can be both tangible and intangible. The main categories are network and internet, software, hardware and semiconductors, also known as chips.
Why is tech a good choice for stock investment?
There is no such field that can operate without technology. Can you think of a company or an institution that does not use computers or the internet? No, because business, education, medicine, agriculture, transportation, communication, and many more industries heavily rely on technology. Everyday use of tech alone, in forms of electronic devices and their software, is enough to create demand in this sector.
Another huge advantage that sets tech apart from other sectors is the growing competition. Scientists, engineers, and programmers come up with something new at an alarming rate, which means their competitors have to keep pace with that. This notion leads to continuous work and, from investor’s point of view, it means circulation of money and sustainable income.
Tech stocks in practice
Just like any other sector, for tech you should take a look at Nasdaq. The Nasdaq Composite Index, which has more than 3,000 stocks listed on the Nasdaq exchange, includes the world’s most famous technology and biotech giants such as Apple, Google, Microsoft, Oracle, Amazon, Intel, and Amgen. Besides the well-known titans of tech, you should also consider the following three stocks:
With a market capitalization of $16.2 billion and estimated growth of 14.1% in December 2015, NXP should be on your list. The products of NXP range from smartphones and smart credit cards to automobiles and environmentally friendly light bulbs. The clients of NXP include names like Microsoft, Apple, and Target.
With a market capitalization worth of $1.7 billion and estimated earning growth of 15.4% in the year that ends in March 2016, NetScout has a huge potential of ensuring two digit earnings growth. They offer a software that not only detects technical problems of networks but also successfully finds cyber-criminals. Due to their one of a kind product, NetScout Systems is estimated to join the leading companies of the field very soon.
Amazon came to show that online stores can be very profitable and MercadoLibre proves it. Even though it is only available for Latin America, Wall Street estimated that MercadoLibre's sales growth rate will actually accelerate from a projected 27% this year to 33% in 2018. If you are looking for an international investment opportunity to diversify your portfolio, then MercadoLibre is the one to choose.
Technology is a steadily growing sector that deals with inventions and innovations, which, in their turn, are the base of regular profit. However, some people hesitate to invest in it simply because they are not well familiar with the field, which is a valid reason. In these conditions, you can always turn to investment newsletters and the professionals of the field will send you the current trends and help you determine your position.