5 Top-Ranked Tech Stocks To Buy In 2H19
Zacks Investment Research | Jul 01, 2019 08:49AM ET
The technology sector had a terrific first-half 2019 despite the U.S.-China trade woes. Notably, the Technology Select Sector SPDR (XLK) has returned 25.9% year to date, outperforming the S&P 500’s rally of 16%.
Tech’s outperformance can be attributed to rapid adoption of cloud computing and strong demand for AI-based solutions. The secular growth trend in data is helping technology companies infuse machine and deep learning into their solutions.
Additionally, increasing allegiance to online gaming, music and video-streaming services is a major growth driver. Improvement in Internet speed and penetration globally deserves a special mention in this regard.
Further, proliferation of IoT that is facilitating connected devices and smart homes is a key catalyst. The accelerated deployment of 5G technology and faster-than-expected growth in robotics set the stage for more development.
Trade Talk Resumption Bodes Well
Moreover, a probable resumption of trade talks between the United States and China, post the G20 meeting between U.S. President Donald Trump and China President Xi Jingping, bodes well for the sector.
The temporary halt on imposing tariff on an additional $300 billion is expected to benefit tech companies like Apple (NASDAQ:AAPL).
Trump also eased restrictions on Chinese telecom giant Huawei to buy some additional U.S. products. The decision bodes well for Google (NASDAQ:GOOGL) and chip makers like Micron (NASDAQ:MU), Broadcom (NASDAQ:AVGO), Intel (NASDAQ:INTC) and Xilinx (NASDAQ:XLNX).
Notably, tech-heavy Nasdaq has gained 20.1% on a year-to-date basis.
Picking the Winning Stocks
The aforesaid factors are expected to benefit the tech sector in the second half of 2019.
Here, with the help of the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.