A ”tech" company is simply an electronic-based technology company. Such a company's business will involve and focus majorly on selling products or offering services about computers, software, electronics, AI (Artificial Intelligence), e-commerce services, and other branches of ICT (Information, Communication, Technology). In tech, it is worthy to note that as much as numbers are important, they are not everything; there are a couple of top tech companies now that had little to zero profit but went on a massive climax later on; two good examples are Amazon and Tesla, well, tech stocks are quirky with growth and a train wreck tech company can become a huge golden goose. This piece points out five prospective tech stocks to invest in, based on different investment strategies, in 2021.
ACI Worldwide (ACIW) is a payments technology business that acts as an electronic link between financial institutions, invoicers, and dealers. In short, ACIW's interest is being in the middle of a mobile payment structure rather than having a mobile payment App with a significant market share. As a result, ACIW takes a unique approach to cashless transactions, focusing on increasing fraud protection and lowering "transaction fees", which are payable to dealers every time they digitally charge a user's account. In a time of "round the clock" payments and the need to make the digital payment process very efficient, ACIW is a great opening for too many investors. It handles online transactions for over six thousand holdings and processes payments daily of over 14 trillion US dollars.
Furthermore, FY (Fiscal Year) forecast for 2021 income for ACIW is 1.15 US Dollars per share; this is about double compared to the 0.62 US dollars it posted in 2020, which is expected to grow 11.3 percent more next year. In February 2021, Starboard (a travel and trade service company) was able to help bring on two independent directors to ACIW board because of its eight percent stake; this move has made investor on Wall Street enthusiastic about the uptrend in the tech company's stock either by improvement services or a sell-off deal as activist investors at Starboard have earlier forecasted in 2020. This puts up ACIW as a good tech stock to buy in 2021.
Most of the top tech businesses have a strong positive case to make. Microsoft Corp. (MSFT), on the other hand, appears to have the smoothest path. The strength of Microsoft stems from its remarkable variety. Shareholders that purchase Microsoft get a piece of the key Windows and Microsoft Office and gaming, LinkedIn, and the cloud company. This is a fantastic combination of dependable revenue stream services and attractive development opportunities.
MSFT by market capitalization is the 2nd biggest firm in the United States, only behind Apple, and is expected to garner over 166 US dollars this Fiscal Year and has a current balance sheet of 125 Billion US Dollars; good security. The major attraction is that MSFT's growth is at speed other firms cannot match, and its return is expected to increase 16 percent in 2021. Earnings per share have a projection to move from 5.67 US Dollars to 7.77 US Dollars, a 35 percent increase in the 2021 Fiscal Year compared to the 2020 Fiscal Year. These statistics are impressive for any stock, not to mention MSFT, a giant in the industry already. That's why MSFT is such a great investment. Additionally, its natural growth gives the financial muscle to take actions like repurchasing 7 Billion US Dollars shares in the last quarter and 20 Billion US Dollars in its Fiscal Year's first 9 months ending in June 2021.
PayPal Holdings (PYPL) was an old-school online payment platform bought by eBay for 1.5 Billion US dollars about two decades ago but is now estimated around two hundred times that price. Talking about mobile payments and cashless businesses, PYPL has been on top of the ladder. For example, it recently acquired online payments rivals Venmo and Xoom, resulting in a network of nearly 400 million current users that have processed 285 Billion US dollars remittances in the last three months. PYPL has rapidly moved to add emerging digital currencies to its platform, providing services that allow users to buy and hold them as assets and send them to other users in deals. The outcome is a digital financial behemoth with total revenues expected to reach 31 billion US dollars in the coming Fiscal Year. With the shift away from traditional banking, more recently fast-tracked by the pandemic, a large tech stock like PYPL will be propelled to more significant achievement in coming years.
ServiceNow (NOW) looks like a company customized for life after the pandemic. It gives cloud services centered on simplifying disorganized workflows covering every section of works. NOW offers solutions to over seven thousand users, which includes almost 80 percent of fortune 500 companies. With its addition to the S&P 500 index in November 2019, this online workflow company has spread its partnership with Microsoft Corp. to assist the company in selling to heavily regulated industries and host its whole SaaS product on Microsoft's renowned Azure cloud. Furthermore, its App Engine that can be personalized and IntegrationHub technologies allow enterprises to create custom apps with the most impact. NOW has been able to thrive because of this versatility enabling the company to serve clients across different fields.
Numbers don't lie; since going public in 2012, NOW has grown its sales by more than 30 percent annually and a 31 percent increase in 2020. At the end of April, the company surpassed YahooFinance's Q1 2021 Fiscal Year projections, with sales of 30 percent. In addition, NOW also ended the quarter with 1,146 clients worth more than 1 million US dollars in annual contract value, a 23 percent increase from the previous quarter. With a 4.5 billion US dollars income in 2020, there are projections of over 25 percent growth in 2021 and 2022 Fiscal Year, with NOW having expectations of finishing the next FY with sales of 7.2 billion US dollars. Earnings per share have also gone up, moving from 4.63 US dollars to an expected 5.51 US dollars in 2021 and 7.03 US dollars in 2022, growths of 19 and 28 percent, respectively. By 2024, the company expects to generate 10 billion US dollars in revenue every year.
NOW's profit margins have been steadily growing, indicating that the company isn't trying to grow by any means but also keeping a big eye on the quality of its service. Summarily, commerce in this present age depends on well-founded and speedy information technology, and ServiceNow plays a critical role in keeping everything going well. Many firms are whining about undoing the working from a home movement that molded the early days of 2020 out of necessity, but undoing the done will be extremely tough. NOW is one of the greatest tech stocks to take advantage of this upward trend.
Tyler Technologies (TYL) is proof that niche markets can be extremely profitable. TYL has carved out a great enterprise in a less fashionable part of the software industry; government services. TYL's Odyssey system of Court Management is the company's foundation. Tyler is trusted by local and state courts to update their inept records management procedures. The revenue from that has been re-invested in purchases of other software platforms geared at local government.
In recent years, this company has experienced significant growth. It should also benefit the future, given the pandemic uncovered several flaws in governments' outdated digital systems. Mayors and local councils will also be sketching new partnerships with Tyler due to the need for more services to be offered digitally. This information explains why TYL is a great stock to invest in in 2021 as it is projected to hit new grounds in its services.
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