What is the best tech stock to buy this month? Looking for the top 7 technology stocks to buy In April 2021? We’ve got you covered!
The start of 2021 witnessed the tech sector continuing its up and down momentum to where it sits today. Whilst some tech stocks are continuing to hit new highs, others are dropping making now a great time to take advantage of these declines.
It all comes after the leading industry witnessed a huge decline off the back of 2020’s March lows at the start of the pandemic. But once the world began operating in a remote working environment widespread across the globe, this ultimately pushed businesses and investors alike to witness great growth and pull in great returns on the back of this. Making this industry one that many investors seek to turn to for growth in challenging times.
The technology sector which is represented by the Technology Select Sector SPDR Fund (XLK) that currently holds a YTD change of 0.41%, is jam-packed full of businesses that offer various products and services.
From top-class software, electronics, computers and additional industries that are related in some form to technology. There is no end to this leading sector's potential.
In addition, the NASDAQ index is up around 73% year-to-date although sits 7% down from its February highs. In comparison, the leading S&P 500 index currently sits at just under 53% year-to-date yet hit a record closing high last week calculating its gains to 5.8% in 2021.
Nonetheless, these two popular indexes who are home to many leading tech stocks including Microsoft (MCST), Amazon Inc (AMZN) and Adobe (ADBE) will no doubt continue to surprise or at least try and maintain their highs as the powerful industry continues to innovate and deliver results, in some cases that have never been witnessed before.
On the back of this news, this week it was confirmed that technology stocks took another dip as it was confirmed that investors are pulling out in some of the top-rated tech stocks such as Apple (AAPL), Amazon (AMZN) and more, and choosing to entertain undervalued banks and industrial stocks due to U.S bond yields and heavy interest rates in the U.S according to Reuters.
In light of this recent news now is a great time to consider investing in this industry as it is only a matter of time before the attention will be placed heavily back on these stocks, surely this is currently the case as these stocks are already showing signs of improvement.
And let's be honest the market volatility that has been witnessed over the past year is not going to stop the tech sector from innovating, not throughout 2021 and not for many years to come. This leaves many investors who opt for long-term investments to strongly consider investing in some of these best performing tech stocks sitting at relatively discounted prices today.
As more offers are becoming visible on top tech stocks across the market over recent weeks, it's time to consider these attractive buys in April 2021.
So who are the leading tech stocks to buy for April 2021? Let's take a look at 7 of the best top tech stock picks that investors should consider.
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Top 7 Best Teck Stocks to Buy in April 2021:
- Microsoft (MSFT)
- Adobe (ADBE)
- Salesforce.com (CRM)
- Roku (ROKU)
- Alphabet (GOOGL)
- Apple (AAPL)
- ServiceNow (NOW)
Are you looking to buy into the one of the fastest-growing industries in the world in 2021 and want to know who are the best tech stocks to invest in for April? No need to endlessly search as we have picked 7 of the best tech stocks for you to consider.
1. Microsoft (MSFT)
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.
On top of this, MSFT is also in talks to expand its portfolio with Discord Inc (DS) for a cost reportedly going to set back Microsoft a figure of over $10 billion. Discord Inc is a video-game chat community where gamers can interact via voice, video and text communications and is currently serviced by over 100 million active users.
This addition will push Microsoft further into the social media world as TikTok and Pinterest (PINS) were also in the stocks eyes. It will also tie in perfectly with Microsoft's Xbox products that enable gamers to communicate across the globe with their chat-live subscription service.
Analysts are being firm on the stock with 16 out of 21 Wall Street analysts rating the stock a ‘Strong Buy’ and have given the stock an average price target of $281.26 with a low of $256.00 and a high price target at $300. This is from where MSFT stock sits at $235.77 up from its previous close of $231.85 giving the stock an increase of 1.69% from its previous downside of 1.44%.
As Microsoft's share price surged to over 60% in the past year and the recent news of many investors selling their shares out of slight fear, makes now an opportune time to buy in on this long-reining tech stock and to keep this stock in your portfolio for the long-term as it continues to evolve.
2. Adobe (ADBE)
One of the largest and most diverse creative software companies in the world today, Adobe Inc (ADBE) is the leading software for many creative individuals across the globe.
With Adobe’s new Adobe Photoshop Elements 2021 and with the company offering new users discounted rates on their subscription creative software, this will no doubt push this stock on adding to its already successful earnings as it was confirmed within the company’s Q1 2021 that the company reached new highs.
In the stocks Q1 2021 report ADBE hit a new record high in Revenue in Q1 archiving $3.91 billion resulting in a 26% year-over-year increase with Diluted Earnings Per Share on GAAP and non-GAAP being $2.61 and $3.14 respectively confirming a 33% and 38% YoY increase.
The stocks digital media segment is a dominating force which earned the company a whopping revenue of $2.86 billion in Q1 2021 an increase of 32% YoY. From the back of such success, the stock managed to gain $1.77 billion from cash flow operations.
All of these shining green lights have pushed Adobe to raise their targets both annually and quarterly with analysts also being bullish on this creative tech stock.
Adobe has released the following targets for fiscal Q2 which include a Revenue target of $3.72 billion, Digital Media Segment growth of 21% YoY and Earnings Per Share GAAP and non-GAAP being $2.09 and $2.81 respectively. These are just four overall increases across the board for this stock.
Analysts on the other hand, are favouring this creative tech stock with 7 from 13 Wall Street analysts giving this stock a ‘Strong Buy’ rating resulting in the stock holding a consensus ‘Buy’ rating overall.
Analysts average price targets are showing a great upside for the stock with an average price target of $565.15 with a low price target of $510.00 and a high price target at $580.00, an upside of almost 22% from where the stock sits on the market today at $475.37.
Since the news came on Tuesday that many investors were on a mission to sell their shares in the top tech stocks, ADBE’s share price has risen by 2.1% in a day from its previous close at $465.46.
This stock has the strong potential of future growth as the digital world and creative world keep on evolving, and Adobe will no doubt be at the helm of these changes. With ADBE stock seeming to be undervalued for its potential with ZacksRank ratings also highlighting this giving the stock a #2 Buy rating with a grade B for growth, makes Adobe Inc a tech stock to buy in April.
3. Salesforce.com (CRM)
Salesforce.com (CRM) the software company that has innovated well and continues bringing companies and customers relationships together has had a successful year over 2020.
The stocks 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 2020 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 over the past year. Although the stock sits around -5% down from its share price on 31st December of $222.53 to $211.87 today, this is a positive sign for investors to buy in on the slight dip.
The results presented within the stocks Q4 and Full Year 2021 Fiscal Results confirmed just how well the stock performed, benefiting hugely from the global Covid-19 crisis.
Total Q4 revenue increased to $5.82 billion up 20% over the year adding to a Total Fiscal 2021 revenue of $21.25 billion up by 24% YoY. Subscription and support revenues witnessed an increase of 20% in Q4 adding to a 25% increase in the full-year outlook to $19.98 billion and professional services and other revenues increased by 21% to $1.28 billion YoY.
All well and delivered results for CRM, but one factor that is causing this stock to potentially be overlooked by many is its giant merger with software company Slack (WORK) in a reported $27 billion deal. But in actual fact, this merger with Slack Inc will only benefit Salesforce enormously in delivering many offerings for both business owners and consumers.
On the back of strong results, CRM has amended their target expectations slightly looking to Q1 but can not give exact figures due to not being able to predict future gains or losses due to the new businesses the stock has acquired. A Full Year Revenue guidance tops $5.88 billion in Q1, an approximate increase of 31% YoY with a Full Year revenue target of $21.1 billion for FY22.
Nonetheless, Wall Street analysts who are covering the stock are maintaining their strong advisories on this tech stock resulting in an overall ‘Buy’ with Goldman Sachs giving the stock a price target of $315 an upside of almost 50% from the stocks share price of $211.87 today.
4. Roku (ROKU)
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.
The results off the back of such streaming over the year was clear. Roku confirmed that it added 14.3 million incremental active accounts in Q4 reaching a total of 51.2 million at the end of 2020. Whilst streaming hours increased by 20.9 billion within Q4, this resulted in a record new high to 58.7 billion hours at the end of the year.
When it comes to sales and revenue ROKU delivered. Revenue grew by 58% to $1,778 million with Platform revenue increasing by an impressive 71% to $1,268 million YoY.
The news quickly spread of how well the stock may deliver and two days before the company issued their latest financial report, shares jumped to their all-time high so far of $469.70. But as the tech sector has taken a decline since the start of the year, the stock's share price today sits at a more attractive price of $325.77 up from $311.96 of its previous close on Wednesday.
ROKU is setting their growth avenue up nicely as they continue to acquire more brands with This Old House being one of the latest. Then you have the stocks advertising capabilities as it announced its newly acquired company Nielsen Holdings to the mix broadening the stocks ads potential.
There is no wonder Wells Fargo’s Wall Street analysts have rated this stock a ‘Strong Buy’ with a price target of $519.00, an upside of just about 65% from today's share price.
Whichever way you look at this tech stock it is certainly one that can deliver and benefit in a number of ways 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.
5. Alphabet (GOOGL)
One of two FANG stocks to make this list is Alphabet Inc (GOOGL). Two main reasons why Alphabet made the list as a tech stock to buy in April is because firstly it is a solid delivery stock that even in challenging times can deliver. Secondly, the stock is actually sitting at a relatively attractive position with its share price.
A small 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 which includes cloud and advertising avenues.
In GOOGL’s latest Fourth Quarter and Full Year 2021 report, the stock delivered again rebounding continuously from its temporary March 2020 low at the start of the pandemic.
As individuals suffered the web across the globe including streaming on the popular site YouTube, this increased Alphabet’s revenues to surge to great highs. Ad revenue pulled in well at the end of 2020 with a 22% increase and Youtube was one of the main driving focuses within the stocks Q4 performance, resulting in an overall revenue result of $56.9 billion in Q4.
Although the stocks Google Services remains a main attraction for this brand, the stock is also pushing ahead with its Google Cloud segment which reached revenues of $13.1 billion at the end of 2020. Considering this avenue is one of its newest routes it is performing well and remains a key focus for the brand for further growth as it continues to reinvest to develop.
The stocks Other Bets include Waymo, an autonomous driving company, Verily, a healthcare brand and many more.
GOOGL sits on a ‘Buy’ rating with a share price of $2,062 upon writing this article, just below fair value. This stock is a great buy if you jump in at the right time with an average price target of $2,350 giving the stock an upside of just under 15%.
This stock is not one of the cheapest tech stocks to buy into but this stock certainly has the established footings to be a fantastic long-term tech stock for investors.
6. Apple (AAPL)
Just like Alphabet (GOOGL) Apple Inc (AAPL) is another component within the FANG index.
As mentioned due to the rise in both bond yields and interest rates this is hitting the bigger tech stocks harder than of smaller stocks, which is why Apple (AAPL) witnessed a decline of almost 10% at close on Tuesday to $119.90. For this reason with Apple’s share price being even more affordable and currently sitting undervalued makes this great tech stock one to buy.
From the start of the pandemic, many would have and did expect Apple’s sales to be driven down causing Apple to decline significantly. But that was not the case in fact Apple has seen fantastic gains over 2020.
In APPL’s recent 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.
Then looking at where the stock sits financially is more impressive as Apple sits on a record cash flow from operations of $38.8 billion in Q1 2021 with the stock confirming it turned out over $30 billion to shareholders.
In light of the recent happenings and the stocks potential, analysts are being bullish on the stock. UBS increased its price target to $142 from $115 per share yesterday whilst Wall Street analysts who are covering the stock have an average price target of $160 per share above 30% of where the stock sits at $122.15 today.
Apple Inc is always innovating with its products yearly, along with introducing new products to consumers. The stock has kept tight-lipped on what the next adventures will be in 2021 but one major avenue is the acceleration into the automotive industry with Apple’s Electric Car Project which could be the extra growth push the stock has been looking for.
Although Apple Inc is down by almost 16% today, the stocks future prospects is what is holding in favour for the one most valued stocks in the world. That being said confirms that AAPL is a top tech stock to buy into for April and one to look to hold for the foreseeable future.
7. ServiceNow (NOW)
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.
Within the companies Q4 and FY2020 results the stock delivered nicely. Subscription revenues hit $1,184 million in Q4 and $4,286 million annually achieving an increase of 32% YoY.
With the stocks evidenced earnings and its strong growth prospects many analysts advise that its hefty valuation is justified as the stock is leading the way within the Workflow and IT operations management market. This will evidence the ‘Strong Buy’ rating given by 15 Wall Street analysts with 7 ‘Buy’ ratings and 2 ‘Hold’ ratings.
The stock has also been given an average price target of $600 an 18% upside from today's share price at $500.11 with an average low price target of $330.00 and an average high price target of $670.00.
Analysts also expect the company to hit an average earning per share (EPS) growth forecast of above 35% over the next three to five-year outlook, and some predict that earnings will grow by 66.37% per year.
NOW stock is also looking for a steady increase within its Q1 and Full Year 2021 outlook with a revenue target increase of 29% to $1,280m in Q1 and Full Year Revenue to increase by 28% to $5,550m in 2021.
As the stock seeks to establish further growth including its acquiring plans with its most recent Intellibot extending NOW’s workflow operations, all of these added additions are only going to push this digital tech stock further ahead of the game. Which is why NOW comes as a tech stock that investors should look to consider to buy in for April.
Conclusion: Which tech stocks should I buy for April 2021?
All in all, April 2021 looks like a great time to make some smart investments in tech stocks. For a variety of different 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 not only deemed to be one of the safest industries to invest in but it is also one of the fastest-growing and innovating industries on the open market today, drawing in almost every investor at some point within their investing journey to invest in such stocks.
Having said that, it is always wise to conduct additional research before investing in your chosen investments as all come with their own risk elements.
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