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5 Top Tech Stocks to Buy for 2021 with Long-Term Potential

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  • (0:45) - Market Update
  • (3:20) - Zendesk
  • (6:30) - CrowdStrike
  • (9:25) - Shopify
  • (14:10) - The Trade Desk
  • (17:30) - Nvidia

 

On today’s episode of Full Court Finance at Zacks we dive into five stocks within the broader technology sector, from semiconductors to cybersecurity, that investors might want to consider buying for 2021.

The Dow, the S&P 500, and the Nasdaq all closed at all-time records on Monday, as the market looks to close 2020 on a high note. Stocks did slip slightly through early afternoon trading on Tuesday. But Wall Street is still high on the newest stimulus bill in the U.S. and the Brexit deal that was struck on Christmas Eve.

Let’s also remember that officials project that roughly 100 million Americans will be vaccinated by February or March. Furthermore, the strong S&P 500 earnings outlook for 2021 and the low interest rate environment have helped cover up concerns about rising coronavirus cases.

All of this helps set up a bullish outlook for 2021. And despite the possibility of a comeback in hard-hit social distancing areas, tech still seems like a safe bet for next year and beyond.

All five of the tech stocks we looked at earn a Zacks Rank #1 (Strong Buy) or #2 (Buy) at the moment. The first stock we dive into is Zendesk (ZEN - Free Report) . This cloud-focused CRM firm with a software portfolio geared toward sales, support, and customer engagement has seen its stock price soar and its outlook appears strong as businesses transform for a more digital world.

Meanwhile,CrowdStrike (CRWD - Free Report) is a cybersecurity firm that utilizes machine learning and AI to protect endpoints and cloud workloads. And the stock has pulled back by roughly 10% after it hit new highs last week, which could set up a better buying opportunity.

Shopify (SHOP - Free Report) is an e-commerce powerhouse that surged in 2020 to double Amazon (AMZN - Free Report) . The stock has already fallen around 10% since reaching records last week and it’s ready to thrive in a digital commerce age that’s just getting started.

Moving on, The Trade Desk (TTD - Free Report) is an advertising company that’s built to succeed as digital spending surpasses traditional media buying and marketers race to reach consumers in the Netflix (NFLX - Free Report) age. TTD is now up 210% in 2020, but like some of its peers on this list, it is down over 10% off last week’s heights.  

The episode then closes with Nvidia (NVDA - Free Report) . The GPU giant has been on a tear in 2020 and a recent cool down might set up a better buying opportunity for NVDA as we head into 2021. 

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