Many of the investors I talk with would like to get into tech stocks, but they’re nervous. They may have owned shares that went south in the past. Or maybe they’re overwhelmed by all the rapid changes.
Believe me, I get it.
If you’ve hesitated at all to invest in tech stocks, you’re missing out on some of the biggest gains in the market today.
You may want to consider the following:
Over the past several years, innovation of new technologies has accelerated at an exponential rate. It seems like only a few years ago, we were dreaming about things like video phone calls, voice-activated appliances and self-driving cars.
All 3 are now science fact.
Not only have these shiny new products and services captivated our imaginations, but they’ve also been a major force powering corporate earnings and the historic bull market run.
Yet while the S&P 500 enjoyed the best earnings we’ve seen in more than 5 years, tech investors experienced a bit of indigestion during the downturn and tech sector rotation in November and December. However, the recent weakness in this space has created even more compelling opportunities to buy.
Demand That Keeps Growing and Growing
Looking at the tech landscape, there are 3 reasons for stocks to climb.
More . . .
A small number of under-the-radar tech companies appear poised for exceptional growth. These innovators are at the forefront of emerging trends that are changing the world. They could very well be the FANG stocks of tomorrow.
Zacks is targeting exceptional gains from these stocks over the long term. You’re invited to access these exclusive recommendations until midnight Sunday, January 14.
1) Industrial demand for tech-related products and services has never been greater. New technology brings in increased productivity, collaboration and safety. And with the Internet of Things and other applications still in their infancy, you can expect to see even bigger strides in the days to come.
2) Consumers are adding tech toys to more and more areas of our lives. It’s not just cell phones; we have smart watches, virtual reality devices such as Facebook’s Oculus Rift, and smart home devices like the Amazon Echo or Google Home. (In his letter to shareholders in April, Jeff Bezos noted that his company can’t keep Echo devices in stock.)
3) Researchers are continuing to push further into territory previously unimaginable.
For example, companies are developing technology to not only map out the human genome, but to edit it. Someday, they may be able to simply delete diseases right out of our DNA!
Computers and machines are now being built with the ability to learn independently, without being programmed. This “machine learning” enables computer programs to change when exposed to new data.
You may already be familiar with IBM’s Watson, the most visible example of machine learning. Watson became famous for vanquishing human contestants on Jeopardy back in 2010. Today, the AI powerhouse analyzes data for professional sports, performs facial recognition and other security measures, and is in demand for countless other tasks.
Speaking of data, Global internet traffic has quintupled over the past 5 years – and it’s expected to double again in the next 2 years. Data centers are investing hundreds of billions of dollars to upgrade their infrastructure to handle the load.
Where this kind of innovation meets ever-increasing consumption, there is potential for incredible growth.
Which Tech Stocks Should You Pay Attention to Right Now?
As you can see, the tech sector is already having a huge impact on almost every segment of society. The number of exciting possibilities will only increase as more companies and industries increase their use of breakthrough technology in the days to come.
If you’d like to target promising tech stocks from under-the-radar companies that are creating the world of tomorrow, I invite you to join me inside Zacks’ newest investment portfolio, Technology Innovators.
We’re looking beyond the Facebooks, Amazons and Googles to find little-known tech stocks with breakout potential. Our goal is triple-digit long gains.
In addition to checking out Technology Innovators, you are welcome to download Zacks’ Special Report, Conducting the Future of Technology. It reveals four stocks in the $386 billion semiconductor market that you’ll want to get in on before the next big innovations really take off.
Please note: we must limit the number of investors who receive this information. Access closes Sunday, January 14 at midnight.
Brian Bolan is our aggressive growth expert and the editor of the Zacks Technology Innovators portfolio.