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Tailoring Retirement Portfolio: Bet On These 4 Tech Stocks
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Retirement brings a number of challenges, including replacement of income that seniors earn during their service life. And from the traditional approaches to retirement planning, which includes investment in fixed-income assets, it’s difficult to cover expenses.
Therefore, we consider that 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 a longer period.
Tech Stocks are the Best Choices Now
Tech stocks could be intriguing picks for retirement portfolio, considering the sector’s resiliency amid the coronavirus-led panic sell-off in March. 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 growing 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 tech companies. Rapid adoption of cloud computing, along with the integration of AI and machine learning, has been a major 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.
Choosing the Stocks
It is difficult to pick the right stocks from a wide range of the 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.
Our Picks
Chegg (CHGG - Free Report) operates a direct-to-student learning platform. The company has been benefiting significantly from the coronavirus-induced online-learning wave. As schools and colleges are likely to remain shut for a prolonged time, the momentum is likely to continue for this Zacks #1 Ranked stock that has a VGM Score of B.
The long-term (3-5 years) expected EPS growth rate for Chegg is pegged at 30%.
Fortinet (FTNT - Free Report) seems to benefit from the widening threat landscape, thanks to its suite of efficient offerings. The FortiMail platform can be used to block specific file types containing certain keywords.
With the growing number of employees working from home due to the coronavirus crisis, the use of cloud and virtual meetings is also increasing. This is a solid opportunity for the latest hacking method doing the rounds to extract information and launch an attack. Such rising cyber-attack risks are propelling demand for Fortinet’s products and services.
This Zacks Rank #1 stock has a VGM Score of B. The Zacks Consensus Estimate for its long-term EPS growth is pinned at 14%.
Micron Technology (MU - Free Report) is benefiting from strong demand for memory chips from personal computer manufacturers and data-center operators. The global quarantine situation is fueling demand for PCs and notebooks, as more and more workers and students are now working and learning from home.
Additionally, the work-and-learn-from-home necessity is stoking demand for cloud storage. Also, the lockdown has boosted the usage of online and e-commerce services globally. Therefore, data-center operators are enhancing their capacities to accommodate the demand surge for cloud services.
This Zacks #2 Ranked stock has a VGM Score of B. The Zacks Consensus Estimate for its long-term EPS growth is 10.3%.
Virtusa Corporation is a global provider of digital business strategy, digital engineering, and information technology (IT) services and solutions that help clients change, disrupt, and unlock new value through innovation engineering. Currently, the company is capitalizing well on the trend of the growing global demand for digital and cloud transformations.
This Zacks Rank #2 company has a VGM Score of B. The long-term expected EPS growth rate for Virtusa is pegged at 14%.
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Image: Bigstock
Tailoring Retirement Portfolio: Bet On These 4 Tech Stocks
Retirement brings a number of challenges, including replacement of income that seniors earn during their service life. And from the traditional approaches to retirement planning, which includes investment in fixed-income assets, it’s difficult to cover expenses.
Therefore, we consider that 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 a longer period.
Tech Stocks are the Best Choices Now
Tech stocks could be intriguing picks for retirement portfolio, considering the sector’s resiliency amid the coronavirus-led panic sell-off in March. 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 growing 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 tech companies. Rapid adoption of cloud computing, along with the integration of AI and machine learning, has been a major 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.
Choosing the Stocks
It is difficult to pick the right stocks from a wide range of the 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.
Our Picks
Chegg (CHGG - Free Report) operates a direct-to-student learning platform. The company has been benefiting significantly from the coronavirus-induced online-learning wave. As schools and colleges are likely to remain shut for a prolonged time, the momentum is likely to continue for this Zacks #1 Ranked stock that has a VGM Score of B.
The long-term (3-5 years) expected EPS growth rate for Chegg is pegged at 30%.
Chegg, Inc. Price and Consensus
Chegg, Inc. price-consensus-chart | Chegg, Inc. Quote
Fortinet (FTNT - Free Report) seems to benefit from the widening threat landscape, thanks to its suite of efficient offerings. The FortiMail platform can be used to block specific file types containing certain keywords.
With the growing number of employees working from home due to the coronavirus crisis, the use of cloud and virtual meetings is also increasing. This is a solid opportunity for the latest hacking method doing the rounds to extract information and launch an attack. Such rising cyber-attack risks are propelling demand for Fortinet’s products and services.
This Zacks Rank #1 stock has a VGM Score of B. The Zacks Consensus Estimate for its long-term EPS growth is pinned at 14%.
Fortinet, Inc. Price and Consensus
Fortinet, Inc. price-consensus-chart | Fortinet, Inc. Quote
Micron Technology (MU - Free Report) is benefiting from strong demand for memory chips from personal computer manufacturers and data-center operators. The global quarantine situation is fueling demand for PCs and notebooks, as more and more workers and students are now working and learning from home.
Additionally, the work-and-learn-from-home necessity is stoking demand for cloud storage. Also, the lockdown has boosted the usage of online and e-commerce services globally. Therefore, data-center operators are enhancing their capacities to accommodate the demand surge for cloud services.
This Zacks #2 Ranked stock has a VGM Score of B. The Zacks Consensus Estimate for its long-term EPS growth is 10.3%.
Micron Technology, Inc. Price and Consensus
Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote
Virtusa Corporation is a global provider of digital business strategy, digital engineering, and information technology (IT) services and solutions that help clients change, disrupt, and unlock new value through innovation engineering. Currently, the company is capitalizing well on the trend of the growing global demand for digital and cloud transformations.
This Zacks Rank #2 company has a VGM Score of B. The long-term expected EPS growth rate for Virtusa is pegged at 14%.
Virtusa Corporation Price and Consensus
Virtusa Corporation price-consensus-chart | Virtusa Corporation Quote
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.
Click here for the 6 trades >>