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- HP Inc.
- Dell Technologies Inc.
- CDK Global Inc.
- Mandiant Inc.
- Microchip Technology Inc.
- Western Digital Corp.
- Sensata Technologies Holding
- ASML Holding NV
- In Conclusion
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On the one hand, 2021 could be called suboptimal for tech stocks: YoY returns were lower for the Technology Select Sector SPDR Fund (4.8%) than Russell’s 1000 (5.6%). On the other hand, they still show steady growth, which makes them a good option for long-term investment.
But just because the company operates in the tech industry doesn’t mean its shares are automatically worth investing in. Big names can always crash and burn, while underdogs can bring you a large return on investment. So, which companies deserve your investment now?
Here’s the list of the eight tech stocks you should at least consider buying, brought to you by the qualified paper writers at WritePaper that specialize in finance. The list includes both companies with great price-to-earnings ratios and the ones with the fastest-growing stocks.
HP Inc.
- Traded as NYSE: HPQ.
- Market cap: $38.743 billion.
- Price-to-earnings ratio: 6.61.
HP Inc. is one of the long-time players in the industry – it was founded in 1939 as Hewlett-Packard. Now, you probably know it as the manufacturer and vendor of PCs, laptops, monitors, and printers.
HP Inc. is a big player in the world of investing, too: it’s included in the S&P 500 index, for one. And at the moment, it’s one of the tech stocks with the best price-to-earnings ratio for long-term investment, which secured it the spot on the list.
Dell Technologies Inc.
- Traded as NYSE: DELL.
- Market cap: $34.286 billion.
- Price-to-earnings ratio: 6.42.
You must know this one, too: Dell Technologies develops and sells such consumer goods as laptops, PCs, monitors, and computer peripherals.
In 2015, Dell diversified its business operations by acquiring EMC Corporation. It became a subdivision of Dell that provides cybersecurity, data storage, and cloud computing services.
Dell’s PC market share continues to rise, reaching 17.6% in 2021. This steady growth, along with a good price-to-earnings ratio, is what makes Dell worth your attention.
CDK Global Inc.
- Traded as Nasdaq: CDK.
- Market cap: $6.262 billion.
- Price-to-earnings ratio: 6.25.
You might not have heard of this American company before, but it’s a major player in the automotive industry. What’s more, it’s a part of the S&P 400 index!
CDK Global sells software for automotive retail. This software ranges from CRM and sales management systems to targeted advertising and marketing products.
Although its market cap might seem dwarfish compared to the two previous companies on this list, CDK Global managed to corner its niche successfully. That’s why its price-to-earnings ratio is among the top ones in the industry.
Mandiant Inc.
- Traded as Nasdaq: MNDT.
- Market cap: $5.096 billion.
- Price-to-earnings ratio: 5.73.
Mandiant is a cybersecurity firm operating in 26 countries. With more than 17 years of experience in the field, the company brought in $400 million in revenue in 2021.
Apart from cybersecurity services, Mandiant provides solutions for countering ransomware, managing cyber risks, enhancing OT/ICS Security, and uncovering insider threats. Its Advanced Platform is here to automate most cybersecurity tasks for Mandiant’s enterprise clients.
In March 2022, Google announced it would acquire Mandiant by the end of the year; the deal would cost the tech giant $5.4 billion. Before the acquisition, Mandiant was owned by FireEye, a private cybersecurity company.
Microchip Technology Inc.
- Traded as Nasdaq: MCHP.
- Market cap: $37.268 billion.
- Price-to-earnings ratio: 39.34.
Although its name doesn’t ring any bells for regular consumers, Microchip Technology is a significant player in the semiconductor industry. It’s a US-based corporation that produces microcontrollers, microprocessors, analog and interface products, and so on.
This company is among the fastest-growing tech stocks for one simple reason: its products are guaranteed to be in high demand for a long time to come. The reason? The global chip shortage that unfolded in 2021 won’t get resolved any time soon.
If you need some more convincing, Microchip Technology is already a part of both the NASDAQ-100 and S&P 500 indexes.
Western Digital Corp.
- Traded as Nasdaq: WDC.
- Market cap: $18.305 billion.
- Price-to-earnings ratio: 10.12.
Western Digital is the backbone of the data storage industry. It’s one of the largest hard disk drive, solid-state drive, and flash memory device manufacturers. You might be familiar with its brands, WD and SanDisk.
Thanks to the high price-to-earnings ratio, Western Digital is considered to be one of the cheapest tech stocks on the market right now. Its return on capital employed (ROCE) is also higher than the industry’s average (13%).
As a final argument for buying this particular stock, consider this: cloud computing (which powers your favorite apps) spending continues to rise. And it’s impossible to run cloud computing without racks of Western Digital core products – drives.
Sensata Technologies Holding
- Traded as NYSE: ST.
- Market cap: $7.074 billion.
- Price-to-earnings ratio: 21.65.
This US-based company, with over a century of history, is among the major players in the sensor industry. Sensata Technologies operates in 13 countries around the world under multiple brands.
Its sensors find their applications in many industries. They’re used in industrial pumps, vehicles, battery systems, material handling equipment, and more. They also power the industrial Internet of Things and blind spot monitoring systems.
In the first quarter of 2022, Sensata outperformed its initial financial result estimations. The company also approved a dividend of $0.11 per share. So, even broke students can learn a lot from Sensata!
ASML Holding NV
- Traded as Nasdaq: ASML.
- Market cap: $220.755 billion.
- Price-to-earnings ratio: 40.94.
Without ASML Holding NV, there can be no computer chips. This Dutch-based company controls the majority of the photolithography machine market, and these machines are integral to computer chip manufacturing.
In the company’s own words, it has a “near monopoly” on the market as of 2021. ASML Holding NV has offices in 16 countries all over the world, as well as a network of over 4,600 Tier 1 suppliers.
This company’s luxurious spot in the market and outstanding market cap are what drive many investors to consider investing in this stock. The price-to-earnings ratio is no less astonishing, too!
In Conclusion
These eight tech stocks are the cream of the crop. That said, it’s up to you to decide which ones you decide to invest in. It all depends on your short-term and long-term goals, as well as your capital.
Whichever stocks you’ve decided to pick, remember to diversify your portfolio and keep up with the latest financial news. And don’t overlook corporate presentations!
Thank you for reading!