Tech stocks started 2022 under a lot of pressure, which has continued to date. While some tech stocks have held up pretty well, many others have dropped, making now a great time to take advantage of the low prices.
This comes after the broader equity market corrected amid fears that the Fed was set to take a hawkish stand on interest rates in a bid to tame inflation. Given that tech stocks have been soaring since the 2020 pandemic started, a shift in policy created fears that the tech sector could be hugely overvalued and could take the biggest hit if interest rates shot up.
Investor sentiment about the tech sector is most evident in the Technology Selector Sector SPDR Fund (XLK). Year-to-date, the XLK is down by 13.98%. The XLK is a good representation of the tech sector because it comprises some of the most critical players in the tech industry, from software to electronics.
However, it is not just the tech sector that has taken a hit since the start of the year. The NASDAQ index is down by 9.43% year-to-date. Similarly, the S&P 500 is down by 4.68% year-to-date.
Pressure on the markets has been increased by the geopolitical issues that have come out of the Russia-Ukraine conflict. That said, the U.S stock market markets are holding up pretty well when you factor in the combination of inflation fears and a geopolitical crisis of a magnitude not seen in decades.
As such, these two popular indexes are home to many leading tech stocks, including Microsoft (MCST), Amazon Inc (AMZN), and Adobe (ADBE) will likely bounce back as the year progresses. The tech industry, in particular, is driven by innovation, and this has not been impacted by the issues affecting the markets at the moment.
The potential tech stocks hold is evident in how these tech stocks have bounced back over the past week. Microsoft (MSFT), Apple (AAPL), Amazon (AMZN) have all made some gains though volumes remain depressed, indicative of investor uncertainty.
This means now could be an excellent time to consider investing in tech stocks as they could soon regain traction.
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Here are the top seven tech stocks with the best value, most momentum, and fastest growth.
- Microsoft (MSFT)
- Apple (AAPL)
- ServiceNow (NOW)
- Salesforce.com (CRM)
- Roku (ROKU)
- Adobe (ADBE)
- Alphabet (GOOG)
The long-reining tech stock Microsoft Corp (MSFT) may not be one of the hottest tech stocks in comparison to other tech stocks like Amazon (AMZN) for example, but it is a hot stock in terms of what it can offer an investor.
As the company continues to innovate and adapt to the new ways of modern technology with its standout PC’s, Software segments and its Gaming avenue with the popular Xbox series continues to push MSFT in the limelight. The stock is also expanding into new territory with its latest additional services which include Microsoft's Global Initiative Digital Skills Service. This service has helped over 30 million people across the globe brush up on their knowledge and learning abilities in the form of online courses in order to secure their in-demand dream job roles looking ahead.
MSFT has also been aggressively pushing into the chat business to capitalize on the work and lifestyle changes that were triggered by COVID-19. In 2021, Microsoft was planning to buy Discord but called it off, choosing instead to build its own platform. With more people spending time online for work and social communication, Chat could be a key growth area and makes MSFT a top tech stock to buy this month.
Microsoft is also getting into the first growing Metaverse space. In January, Microsoft announced it was acquiring Video Game company, Activision, for $75 billion. The deal is expected to give Microsoft a foothold in the Metaverse specifically the play-to-earn aspect of the Metaverse.
Microsoft is also gaining traction in the Metaverse space through Microsoft Mesh, a platform that allows individuals to connect digitally using Avatars. Considering that analysts believe the Metaverse could be worth over $8 trillion by 2030, gaining a foothold in this market is a big deal for Microsoft.
With all its fundamentals, it is not surprising that analysts are pretty bullish on Microsoft. Wall Street Analysts have given it a rating of 1.7, which means it is a ‘Strong Buy.’ Analysts have given the stock an average price target of $360 with a low of $298 and a high price target of $425.
As Microsoft's share price surged by over 26% in the past year and the recent news of many investors selling their shares out of macroeconomic and geopolitical factors, now could be an opportune time to buy in on this long-reining tech stock.
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Just like Alphabet, Apple Inc (AAPL) is another component within the FANG index.
One thing that makes Apple stand out is its resilience. In the height of the COVID-19 pandemic, many would have expected Apple’s sales to drop, and negatively impact the stock. But that was not the case. Apple saw fantastic gains all through 2020, and all the way into 2021.
In APPL’s Q1 report ending on December 26th, 2020, the company confirmed a new record high revenue of $111.4 billion, an increase of 21% YoY, with International sales accounting for 64% of Q1’s revenue. For Q4 2021, the company reported revenue of $123.95B, which is higher than the last quarter of the previous year
Besides standing strong in a relatively turbulent period, Apple has a lot coming up that could see the AAPL stock perform well in June and through the year. For instance, on March 8th, Apple will hold its first event for 2022.
Investors expect Apple to focus on the 5G iPhone SE, the Mac mini, and the iPad Air during this event. If news updates on these products come out positive, then there could be an uptick in its stock value in the month. This makes AAPL one of the potentially best tech stocks to buy in June 2022.
Analysts are pretty bullish on AAPL, too. The consensus Analyst estimate for AAPL is 1.9, which means, it is a ‘strong buy.’ Analysts covering the stock have an average price target of $188.
Such strong ratings are warranted given that Apple Inc is always innovating and introducing new products to consumers. Apple has kept tight-lipped on the next adventures in 2022. Still, one major avenue is the acceleration into the automotive industry with Apple’s Electric Car Project, which could be the extra push the stock has been looking for.
Check Out: Apple (AAPL) Stock Price Predictions
The power of digital workflows continues to be the way forward which is exactly what ServiceNow (NOW) prides itself on doing.
The new era of the Now Platform has all of the platforms entwined including Customer Workflows, Employee Workflows, IT workflows and more delivering a smarter and manageable way to operate across various industries.
From a look at its technical indicators, there is reason to believe that ServiceNow is a top growth tech stock to buy in June. ServiceNow’s Relative Strength Index (RSI) has improved from 62 to 80. Considering that the stock is currently consolidating, this signals a potential breakout in the short term.
ServiceNow top management will be participating in a fireside chat on March 7th, 2022, and could be the trigger for a breakout. The fireside chat will take place at the JMP Securities 2022 Technology Conference, which will be held at the Ritz-Carlton Hotel. If positive news comes up during the fire chat, it could trigger an uptick in NOW's stock price. This coupled with positive technical indicators, makes NOW, a top tech stock to buy now.
With such strong prospects, it is not surprising that analysts are bullish on NOW. Analysts have given NOW a rating of 1.8, which means it is a strong buy. NOW is currently trading at $454, while analysts expect it to test $630 in the foreseeable future.
Analysts also expect ServiceNow EPS to grow by 35% over the next three to five years. Some predict that earnings will grow by 66.37% per year.
As ServiceNow seeks to establish further growth, including revealing its acquisition plans, the stock price could rise both in the short and long term. This is why NOW comes across as a tech stock that investors should look to consider buying in June 2022.
Salesforce.com (CRM) the software company that has innovated well and continues bringing companies and customers relationships together has had a successful year over 2021.
Salesforce’s CRM platform known as Salesforce Customer 360 is a powerful tool that enables improvement across a company's various avenues, including marketing, sales, and more.
No matter how big or small a company is, they can look to CRM to establish room for improvement and increase consumer demand.
Because 2021 worked hugely in Salesforce’s favour connecting business owners and consumers around the world, it led this stock to beat both its top and bottom lines.
Salesforce.com continues recording strong revenue growth, a factor that could see the stock keep performing well all through 2022. On March 1st, 2022, CRM announced its Q4 results and full-year results for the 2022 financial year. Salesforce announced that in Q4, revenue shot up by 26%, compared to Q4 of the 2021 financial year.
As for the full-year results, Salesforce announced that revenues jumped by 25% compared to the 2021 fiscal year. This underscores Salesforce's strong position in the market and could attract investors not just in June, but all through the year.
Analysts are pretty bullish on Salesforce, too. Wall Street consensus on this stock is 1.8, which is a strong buy. Analysts expect it to test $266. For such potential, Salesforce is without a doubt, one of the best tech stocks to buy in June.
Streaming has become the ultimate go-to over the past year with the likes of Netflix, Disney+, and more witnessing record highs and becoming strong household favourites.
This is where Roku Inc (ROKU) benefits exceptionally well with its streaming players' products enabling households to have a mix of it all. Having big brands under its belt for consumers to stream, including Netflix and many more, alongside its own Roku Channel, which creates amazing content. The stock also offers other additional products such as TVs and more.
Streaming is increasingly taking over from theaters, largely due to the lifestyle changes that COVID-19 brought up in 2020. This was evident in ROKU’s revenues over the last two years. User numbers have been on the rise in the same period, too.
In its latest earnings call on February 17th, 2022, ROKU announced that active accounts stood at 60.1 million and narrow beat analyst expectations of 59.5 million. ROKU’s earnings per share in Q4 of 2021 also beat analyst expectations. Analysts expected earnings per share of $0.06, while ROKU’s earnings per share came out at $0.17.
These numbers indicate that despite the competition, ROKU stands out in the fast-growing content streaming market. This means investors can expect even better performance all through the year, making ROKU a top tech stock to buy in June 2022. ROKU is also setting their growth avenue up nicely as they continue to acquire more brands.
There is no wonder analysts are bullish on ROKU. Analysts have given ROKU a rating of 2.1, which means it is a buy. Analysts expect it to hit $172.
Whichever way you look at this tech stock, it can certainly deliver strong results in the long term. As households across the world arguably switch to online streaming platforms to be their number #1 watch, this will slowly become the new norm for viewing entertainment.
One of the largest and most diverse creative software companies today, Adobe Inc (ADBE) is the leading software for many creative individuals across the globe.
Last year, Adobe had a pretty strong year. This followed the release of Adobe Photoshop Elements 2021, and the company giving new users discounted rates on their creative subscription software.
Despite being one of the best SaaS companies globally, ADBE started March 2022 in the red, dipping more than the broader market. Since the fundamentals remain strong despite the dip, ADBE makes for a good tech stock to buy in June. That’s because once it rebounds, the gains could be pretty high.
It is no wonder that analyst projections for ADBE remain strong. Wall Street analysts have given ADBE stock a rating of 1.9, which means it is a strong buy. The bullish sentiment around ADBE has a lot to do with Adobe’s upcoming earnings report on 22nd March. Analysts expect earnings per share of $3.34, or an increase of 6.37% in the year.
Analysts' average price targets are showing a great upside for the stock with an average price target of $560 with a low price target of $408 and a high price target at $650. Compare to its current price, the potential upside is huge.
Adobe also has a strong potential for future growth as the digital world and creative world keep on evolving, creating new opportunities. With ADBE stock seemingly undervalued for its potential, it’s definitely a tech stock to buy in June 2022.
One of two FANG stocks to make this list is Alphabet Inc (GOOG). Two main reasons Alphabet made the list as a tech stock to buy in June is that it is a solid delivery stock that even in challenging times can deliver. Secondly, the stock is sitting at a relatively attractive position with its share price.
A brief overview if you are not familiar with one of the most valuable companies in the world is that it is the parent company to the popular search engine Google and Google subscribers, including cloud and advertising avenues.
In GOOG’s latest Fourth Quarter report, the stock delivered strong results. Google reported Q4 2021 revenues of $75 billion, an increase of 32% compared to a similar quarter in the previous year. Alphabet announced that these results were a strong reflection of growth in the company’s ad business. Alphabet’s earnings per share also beat analyst expectations, coming in at $30.69, compared to expected earnings per share of $27.34.
Although the stock’s Google Services remain the main attraction for this brand, the stock is also pushing ahead with its Google Cloud segment, which stood at $5.54 billion in Q4 of 2021, while most analysts were expecting revenues of $5.47 billion. Considering this avenue is one of its newest routes, it is performing well and remains a key focus for further growth.
The stocks Other Bets include Waymo, an autonomous driving company, Verily, a healthcare brand, and many more.
GOOG sits on a ‘Strong Buy’ rating, with a recommendation of 1.5. The stock is an excellent buy if you jump in at the right time, given that analysts expect GOOG to hit $3,168.
GOOG is not one of the cheapest tech stocks to buy into, but it certainly has the established footings to be a fantastic long-term tech stock for investors.
Read Also: Alphabet (GOOG) Stock Price Predictions
All in all, 2022 looks like a great time to make some smart investments in tech stocks. For various reasons, we might see some stocks reaching new heights.
And there you have 7 of the best tech stocks available on the market today who all offer fantastic growth prospects and are sitting at fairly discounted prices due to recent contributing factors.
Investing within the tech industry is deemed to be one of the safest and a pathway to fast growth. That said, it is always wise to conduct additional research before investing in your chosen investments, as all stocks come with risks.
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