The stocks markets have been in turmoil ever since the coronavirus’ spread worldwide. However, some stocks managed to stay afloat. Among the 11 sectors of the S&P 500, information technology has been the biggest winners during the Covid-19 pandemic. The Technology Select Sector SPDR’s (XLK) also surged forward by 25.9% in the past six months.
New work and learn-from-home culture, along with social distancing measures, have been giving a boost to the technology sector. As a result, cloud-based software and cybersecurity stocks that support shelter-in-place/work-from-home infrastructure have been outperforming the broader market.
Which stocks do analysts recommend as good investments?
Analysts’ one of the first choices in the tech sector is Apple, Inc. The company designs, manufacture, and markets personal computers, smartphones, tablets, accessories, and wearables worldwide. Everyone knows about its signature products – iPhone, Mac, and iPad.
According to experts’ estimation, Apple’s earnings growth rate for the current year is 8.8%. Furthermore, the Zacks Consensus Estimate for 2020 earnings has improved by 4.9% over the past two months. Apple got a Buy rating from other platforms as well.
Meanwhile, Zoom Video Communications, Inc. has greatly benefited from the pandemic due to the work-from-home and online learning practice. The company uses AI to schedule video meetings. Furthermore, it enables a host of other things, such as organizing attendee details or transcribing details. During the past months, Zoom’s paid subscriber growth for the video conferencing service has improved greatly.
CEO Eric Yuan stated that the Zoom platform has been able to provide an incredibly valuable service in the pandemic-induced stay-at-home scenario. Consequently, the company’s expected earnings growth rate for 2020 is more than 100%, earning the stock a Buy rating.
The third company, Salesforce.com, Inc., provides on-demand Customer Relationship Management software. It enables organizations to better manage critical operations, such as customer service and support, sales force automation, document management, marketing automation, analytics, and custom application development. According to analysts, the stock’s earnings growth rate for 2020 is 25.1%.