Two Technology Stocks for 2021

Expect technology stocks to continue to do well in 2021 driven by fundamental shifts in how we’re now working and recreating. 

Two stocks to like here are:

Microsoft (NASDAQ: MSFT) — Microsoft is the second-largest weighting in the S&P Technology Index behind Apple. It’s what everyone owns. At a US$1.6 trillion market cap, it is one of the largest companies in the world. It’s one of the big places liquidity goes. And there is a lot of liquidity in the system with the world’s central banks running the printing presses full speed. Microsoft will also do well because it’s a good business. It’s profitable, which is a rarity on Wall Street these days, with a price to earnings ratio of 33.95. And it yields just over 1% which is more than bonds can say. 

Visa (NYSE: V) — Visa is the third-largest weighting in the S&P Technology Index. The number of new businesses being created as millions of people lost their jobs coupled with the vast rise in BOPIS (Buy Online Pick Up In Store) is driving growth at Visa, which processes nearly twice as many transactions as Mastercard. There is also a bit of a recovery in credit spending underway and the market likes looking forward. 
 

Call it like you see it, 

Nick Hodge
Editor, Daily Profit Cycle

Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Hodge Family Office, Family Office Advantage, and Foundational Profits. He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.

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