A common theory among investors has always been that technology stocks will perform best in the 2nd half of the year. If true, that would mean that these five tech stocks below are all poised for big runs.
LinkedIn (NYSE: LNKD) The professional networking site is changing the way people manage their careers and adding two new members each second. As its huge member base — currently, 161 million members and growing — becomes more and more engaged, it seems likely that LinkedIn will become one of the big winners of the future. While many other social media stocks continue to struggle and falter, LinkedIn has been the odd one out as its stock price continues to soar higher while the rest of the bunch hit all-time lows. Long-term LNKD is a safe bet to continue it’s run and many analysts on the street agree recommending it as a good buy opportunity with potential to rise all the way to $160 by years end.
Google (NASDAQ: GOOG) Google is still the leader in search advertising, which generates billions of cash flow that the company is reinvesting in big projectslike mobile search, social media, and payments. This large cap still has a lot of growth left in it, though it should also provide investors with some stability. Compared to other tech giants, Google is a saint and has been a great investment since it started and will continue to be a great one for many years to come. PEG Ratio of 0.95 shows strength, along with strong ROI & ROA numbers, plus the fact that Google has one of the strongest books of business from top to bottom showing few weaknesses and with over $42 billion in cash they still have the world of opportunities at their disposable.
Apple (NASDAQ: AAPL) After being crowned the most valuable companies ever, possibly the first trillion-dollar company ever, many wonder what’s next for this tech giant? Currently everything looks safe and sound for Apple as the company continues to define what mobile computing looks like. That’s great for the stock, but not so good for the competition. Apple is about as safe as it comes when one is looking at tech stocks. Analysts from top to bottom love this stock, of the 46 analysts current covering Apple 22 Recommend it as a ‘Strong Buy’, 26 Give it a ‘Buy’ Rating, 5 who say ‘Hold’, and two analysts completely off target who rate it as ‘Sell’ and ‘Underperform.’ Investors who are scared that Apple has soared to high as of late and has nothing left in the tank need to look at the analyst’s current price targets. They range from $740 to $1,110 leaving lots of room for the stock to still grow.
Facebook (NASDAQ: FB) Facebook has created a giant social media platform with more than 900 million users. The problem is despite their great ability to attract users and draw great traffic numbers they are having a great amount of trouble monetizing those users. Their hackers are hard at work everyday developing new ways to monetize the network but the company is currently in serious trouble and need to come up with a new way to monetize the site as soon as possible. The stock continues to slide dipping below $19 as of late, investors are calling out for Mark Zuckenburg to step down, the company is in disarray. There are a lot of doubters out there, but at the same time FB has a tremendous amount of possibilities with this incredible platform. This potential is what keeps investors so interested, hoping that the stock will turn around. It might one day happen, but those possibilities don’t outweigh the negatives such as Facebook’s current PEG Ratio of 1.5, P/S Ratio of 9.62 that in a weak market is relatively high, and P/E of 30.67. Facebook’s poor stock performance has been a horror story since the start and frankly who knows when it will end, therefore it’s best to stay on the sidelines.
Intel. (NASDAQ: INTC) Intel is still the leading chipmaker in the world. And it’s using that clout to go after mobile devices. We expect its dividend to grow very nicely over the next five years. For long-term investors, INTC is a safe bet as it’s steady past performance has always been a great indicator of its future success. The good parts of the stock are there 0.88 PEG Ratio, 2.36 Price/Sales, and strong revenue numbers. Those trying to trade this pick though might want to be careful as currently the majority of analysts have Intel pegged as a current ‘Hold’ which might lead to stagnant trading in the months to come.