Preparation of a financially-secure retirement plan is a tedious task. Retirement brings in a number of challenges, including the replacement of income that seniors earn during their service lives. And it is difficult to cover expenses from the traditional approaches to retirement planning, which include investment in fixed-income assets.
Therefore, we believe equity investments are a brilliant way to create solid income streams for the long run. Though these are riskier, equities are the only asset class that can beat inflation and simultaneously offer capital appreciation over longer periods.
Tech Stocks are the Best Picks
Tech stocks could be an intriguing choice for a retirement portfolio, considering the sector’s resiliency amid the coronavirus crisis. The coronavirus outbreak has, surprisingly, opened up newer avenues of growth for tech companies.
Shift in consumer preference for Internet-based services, owing to the increase in social-distancing practices, has propelled demand for PCs, notebooks and peripheral accessories. In addition, the heightening demand for software and hardware that facilitates work-from-home setting is a key catalyst.
Furthermore, the sector’s resiliency can be attributed to the impressive long-term growth prospects of the tech companies. Rapid adoption of cloud computing, along with the integration of AI and machine learning, has been a key growth driver.
The accelerated deployment of 5G technology — the next-generation wireless revolution — is likely to fuel further growth. Moreover, blockchain, IoT, autonomous vehicles, AR/VR, and wearables offer significant growth opportunities.
Picking the Right Stocks
It is difficult to pick the right stocks from a wide range of available investment opportunities.
This is where the Zacks Stock Screener comes in handy. With the help of this screener, we have filtered four stocks that are incredible for retirement investment planning. These stocks carry a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see
. the complete list of today’s Zacks #1 Rank stocks here
Also, the stocks have a
VGM Score of A or B. Per the Zacks’ proprietary methodology, stocks with such favorable combinations offer solid investment opportunities. Apple ( AAPL Quick Quote AAPL - Free Report) currently carries a Zacks Rank #2 and has a VGM Score of B. The iPhone maker is benefiting from continued momentum in the Services segment, driven by robust performance of App Store, Apple Music, video and cloud services.
Apple’s endeavors to open up its ecosystem, through partnerships with the likes of Samsung and Amazon, are a positive for the Services segment. Subscription-based video streaming, news and gaming services are anticipated to benefit from Apple’s robust installed base. In addition, its wearables and hearables businesses will likely be driven by solid demand for Apple Watch and Airpods. Additionally, strong demand for 5G-enabled iPhone is a major growth driver.
Further, this Cupertino, CA-based company currently has more than 620 million paid subscribers across its Services portfolio. The App Store continues to draw the attention of prominent developers from around the world, helping the company offer appealing new apps that drive App Store traffic. Also, growing number of AI-infused apps will attract more subscribers on the App Store.
Intel’s ( INTC Quick Quote INTC - Free Report) expertise in PCIe Express Gen 4, next-generation Optane Persistent Memory and SGX security enhancements poise it well for growth in the data-center vertical.
Infusion of AI favors growth prospects in data-center training and is fortifying the strength of Intel Xeon inference capabilities. Markedly,
Amazon ( AMZN Quick Quote AMZN - Free Report) announced EC2 instances that will utilize the chipmaker’s Habana Gaudi AI training accelerators.
Moreover, investments in enhancing the networking workload convergence on Intel silicon yielded results. In 2020, the chipmaker’s Radio Access Network delivered advanced Xeon SoCs, FPGAs and custom solutions for 5G base station designs and helped the company attain its 40% share target, two years ahead of the original goal.
Also, management is optimistic about the growing popularity of the latest Sapphire Rapids processors for the data center that leverages better SuperFin process technology and various architectural improvements. Furthermore, the chipmaker intends to upscale production of Sapphire Rapids by the end of this year, which is a boon for this Zacks #2 Ranked company. The stock currently has a VGM Score of B.
NETGEAR ( NTGR Quick Quote NTGR - Free Report) is a global company that delivers innovative networking and Internet-connected products to consumers and businesses. The firm is benefiting from an accretive subscriber base and stellar demand for connected home products, driven by the work-from-home trend.
It is well positioned to serve the demand trends in the marketplace. NETGEAR’s revenues are primarily fueled by the rapid increase in Internet-connected devices, such as smartphones, tablets and the advent of Smart Home, which have boosted the need for networking solutions.
The company is focused on introducing products into growth areas that form the basis of Smart Homes. NETGEAR projects continued strength in its end-market demand for home networks. It is confident of being a leader in fresh product introductions, based on the Wi-Fi 6 standards. This Zacks #2 Ranked company flaunts a VGM Score of A.
Ericsson ( ERIC Quick Quote ERIC - Free Report) presently carries a Zacks Rank of 2 and has a VGM Score of B. It is focused on 5G system development and has undertaken several notable endeavors to position itself for market leadership on 5G.
The company currently has 134 commercial 5G agreements with communication service providers (of which 76 are publicly announced) and includes 83 live 5G networks across 41 countries. The acquisition of Cradlepoint has strengthened the company’s position in the 5G enterprise market.
Apart from this, Ericsson is gaining from accelerated 5G deployments in North-East Asia, North America and Europe. Remarkably, the company’s 5G RAN technologies provide the ultimate infrastructure required to meet the growing demand for high-bandwidth connections and support real-time communication requirements of mission-critical applications, which hold promise.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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