You’ve already upgraded your home with the latest and greatest gadgets out there. Why not do the same with your investment portfolio? You’ll find plenty of stocks in the tech sector that can give your portfolio a serious near-term boost. While you want to maximize investment returns with lower-risk long-term investment choices, you can complement the investments you make for the long haul with stocks that have the potential to enjoy a big (and relatively quick) price increase. You’ll typically hold short-term stocks for just a few years, often much less, before selling and making a profit.
The 2020 market has experienced extreme volatility, but tech stocks have come out as winners overall, making them great choices for savvy investors. Read on for some of the best short-term stocks in the tech sector to invest in today.
Microsoft Corporation (MSFT)
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Microsoft gained serious competitive advantages in the decades leading up to 2020. Then 2020 came, bringing years of digital transformation in the space of just a few months. Microsoft has set itself up for continued success in our increasingly digitized world. Microsoft got into social networks by acquiring LinkedIn and offers the cutting-edge Surface tablet. Microsoft Office is now a cloud-based subscription service, and Microsoft Teams is enjoying rapid workplace adoption. All in all, Microsoft products are everywhere in this new work-from-home reality, so get in while you can and ride the momentum.
This industry giant in terms of application software has been growing its sales in 2020, and stock performance reflects that. Many industries rely on Adobe’s products, such as Acrobat, InDesign, Photoshop, and more. Abode offers its software as a cloud-based service, helping to bring in high-margin recurring revenue. And that’s good news for investors.
While the first two entries on this list might be household names by this point, you might not have STMicroelectronics on your radar yet. However, the Swiss semiconductor company creates chips that power end markets like the automotive sector. The company also has a hand in smartphone touch and display products, wireless charging, and data center solutions for 5G. The stock’s current low PEG ratio is expected to enjoy significant growth over the next few years, which is no surprise given the products the company works on.
Cisco Systems (CSCO)
Cisco features one of the better yields when it comes to tech. The company is known for networking gear and has focused recently on subscription software for managing security and networks. Its current stock weakness could lead to big profits in the near future, with analysts predicting mid-single-digit profit growth over the next couple of years. The pivot to subscription-based sales offers a more reliable model that can also help boost revenues for Cisco.
Do Your Homework
On a final note, stock can be extremely volatile. Companies can and do go out of business. So, before you put any money in a stock, you’ll want to exercise due diligence. There are several good ways to do this. First, you’ll want to pull the company’s 10-K from the SEC. This is the company’s quarterly report and its usually available for larger companies. Once you have the financials, have a close look at them. Then you’ll want to look at what the market sentiment is. A good way to check is via rating agencies expectations regarding the companies share price. Once you have this information you’ll want to make a decision – buy or not.
With technology becoming more important in everyone’s daily life, now is a great time to get in on tech stocks if you’re looking for short-term investments. Not only can you reflect your love of the latest gadgets in your portfolio, but you can also make some smart short-term investment moves at the same time.