Top 6 Tech Stocks to Buy Now

Below you’ll find two separate tech stock watchlists. Each one contains three new stock picks.

Hotlist #1:
Three Mid-cap Tech Stocks to Buy Now

Development and expansion of the public cloud is one of the major driving forces for tech over the past five years.  It’s well documented how the rise of the public cloud has impacted the mega-cap names.  It’s the platforms that those companies have created that have enabled a new generation of software companies to come up around them.  Which means there are big opportunities in smaller tech names.  

Our research team has identified three mid-cap tech stocks that have solid fundamentals and are well poised for growth.

Snap Inc. (SNAP)

Snap Inc. is a camera company who aims to empower people to express themselves , learn about the world and have fun together.  Their most popular product is Snapchat, a popular messaging app that allows its users to send pictures and videos. 

One reason we like SNAP is that they have an incredible opportunity in front of them to close the monetization gap that exists between Snap and other public social media companies.  Up to this point, the company hasn’t yet come into its fullness as far as the advertising market is concerned.  But they’re currently improving their ad tech and over the next year we could see a huge re-acceleration in their business as they start executing some of these opportunities.  

Based on 27 analyst recommendations SNAP has 19 Strong Buy ratings, 1 Moderate Buy, 6 Hold and only one sell rating.  

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Dropbox Inc (DBX)

DBX has been benefitting from the evolving demand for seamless enterprise communication tools.  The company offers a platform that enables users to store and share files, photos, videos, audio files and documents.  Increasing demand for cloud storage, triggered by the coronavirus crisis imposed work-from-home wave, has been acting as a tailwind DBX.  Further, integration with leading apps like Zoom Video, Slack and Atlassian are likely to expand the Dropbox paying user base over the long run.

Based on 6 analyst recommendations, 5 rate the stock a Strong Buy and 1 rates it Hold.  

Anaplan Inc (PLAN) 

Anaplan is positioned for gains from a robust uptick in demand for its cloud-based Connected Planning platform, which enables its users to improve decision-making across finance to supply chains, on a real-time basis.  

The rapid digital transformation that is taking place across all industries is driving the need for efficient planning and data-driven decision-making solutions.  Moreover, current economic weakness has increased the need for companies to optimize their spend patterns.  These factors favor prospects of PLAN.

Of 14 analysts covering the stock, 6 give it a Strong Buy rating, 1 has a Moderate Buy recommendation, 6 Hold and 1 Strong Sell rating. The stock has a consensus rating of Buy.

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Hotlist #2:
Top Three Tech Stocks to Buy Now

Tech stocks have been the star of the market through the first two decades of the 21st century.  Expect that to continue into the third.  

That said, the ways investors can play the technology sector have evolved over the years.  

Once upon a time, tech stocks mostly seemed like speculative picks – high reward but equally high risk. Just consider the Y2K tech bubble. It was almost all speculation… The operative word being “almost.” Investors who made the right calls made billions. Can you imagine getting into Apple (AAPL) at $1.78, Google (GOOG) at IPO, or Netflix (NFLX) at $7.78? 

RELATED: Legend Who Bought Netflix at $7.78 Says Buy TaaS Now

But the (dot) Com bubble of ‘99-’00 was a different time. Technology was nowhere near as big of an influence in our lives as it is now.  Technology’s growing influence across all aspects of society, as well as the need and development of new technologies, has widened the field. Just consider all of the opportunities 2020 has brought for the tech industry. All of the problems we’ve gone through recently need solving… And tech companies you’ve probably never heard of are becoming household names. Just take Zoom (ZM), up more than 400% YTD, Moderna (MRNA), which has stacked on more than 480% this year. And then there’s Tesla (TSLA), which has accumulated an astonishing 670% over the past year. The truth is, some of these once-unknown stocks ARE going to be the next Apple, Google, Amazon and Netflix. These are blue chips in the making, and we hope you and our other readers are millionaires in the making… 

So, we put together this hotlist of three of the best tech stocks to buy in 2021.  

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QTS Realty Trust (QTS)

QTS Realty Trust (QTS) is a leading provider of data center solutions across a diverse footprint spanning more than 7 million square feet of QTS Mega Data Centers throughout North America and Europe.  In addition to hosting corporate data facilities, it lets enterprises connect to “the cloud,” and it allows various cloud systems to connect to one another.  

It’s organized as a real estate investment trust (REIT), which exempts it from federal taxes in exchange for distributing at least 90% of its earnings to shareholders in the form of dividends. 

The 2010s were good to data-center REITs.  QTS, which went public in October 2013,has shot ahead by 180% since then — better than the S&P 500’s 109%, and the 28% performance of the Vanguard Real Estate ETF (VNQ).  Plus, its dividend is still north of 3%.

QTS is one of the smaller players in its space, with a market cap of $3.94 billion, but remains acquisitive.  The company picked up two data centers in the Netherlands in 2019, expanding its geographic footprint.

Fifteen analysts have sounded off on QTS within the past twelve months.  There are currently 3 Hold ratings and 12 Buy ratings.  The consensus among Wall Street equities research analysts is that investors should buy QTS Realty Trust Stock.

NetApp (NTAP)

NetApp (NTAP) produces storage devices for networks.  It went through the 1990s dot-com bubble under the name Network Appliance.  It reconfigured itself into  a hybrid cloud company during the 2010s, and it now competes with the likes of International Business Machines (IBM) and EMC.  They provide a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation.    

NetApp (NTAP) has focused more on software than hardware recently, creating services such as Active IQ, which allows users to gain insights via machine-learning algorithms and spend less time managing infrastructure.  

VIDEO: Why Tech Stocks Are About to Experience The Biggest Shock Since the 2000 (dot) com Bubble.

The company is being conservatively managed at the moment.  CEO George Kurian is concerned about the trade war lasting and says he is managing for “a variety of outcomes.”  Still, several analysts see upside in the years ahead.  Morgan Stanley analyst Katy Huberty upgraded NetApp from being Equalweight to Overweight with a price target of $76.  The analyst commented, “NetApp demonstrates meaningful operating leverage in economic recoveries and historically outperforms the rest of our coverage post a trough in IT spending intentions.”  Cloud Data Services adoption is accelerating, and strong demand is likely to continue.

NTAP has been on the upswing for the past three months, stacking on more than 50% since late September.  Still, the stock is only up about 5% for the year.  With a trailing twelve month P/E ratio of 19 the stock may have plenty of runway in 2021.  NTAP also brings its investors a 2.9% dividend yield. 

With driverless technology being one of the hottest investment ideas in the auto market, the best way to tap the AV revolution would be to invest in the core technology that has made self-driving cars a reality.  And that foundational technology is none other than LiDAR — which basically stands for light detection and ranging. 

Luminar (LAZR)

Since its market debut on Dec. 3, Luminar’s (LAZR) stock has gained 72%.  Luminar’s proprietary software designed to unlock full lidar capabilities will  enhance automakers’ ability to deliver high-speed highway autonomy in commercial series production scale. 

The company has landed huge contracts with Daimler AG (DDAIF), Intel Corp’s (INTC) Mobileye unit, Volvo Group and others, which are likely to solidify its standing in the LIDAR market.  Volvo’s vehicles will be equipped with Luminar’s Iris lidar sensors beginning 2022. 

Luminar expects to generate revenues of 15 million in 2020, which is expected to jump to $837 million by 2025.  The company has recorded year-over-year revenue growth (CAGR) of 7.8%. 

Northland Capital Markets analyst Gus Richard upgraded Luminar Technologies from Market Perform to Outperform with  a price target of $41.  The analyst commented, “LAZR will be the entrenched supplier to Mobileye by 2025.”  

The company has leveraged multiple technological breakthrough innovations to develop the industry’s best LiDAR sensors.  InvestorPlace senior Investment Analyst, Luke Lango, recently noted that LAZR stock might have nearly 500% upside potential over the next few years.  Which means now is a good time to consider an investment in LAZR.  

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