Best Technology Stocks in the Market

According to the earnings-per-share model, the following companies represent some of the fastest-growing technology stocks. As the economy shifts towards more online presence, these companies represent some of the biggest winners in the world, delivering true value for investors.

Avnet Inc. (AVT)

Avnet Inc. manufactures electronic components, primarily semiconductors, for various sectors including software, hardware, IoT, and integration.

In its recent quarterly performance, the company's earnings per share and revenue expectations significantly exceeded. Over the past year, it has shown significant growth in revenue, net income, and net profit margin. The company's dividend yield is 2.15%. AVT stocks are trading near their 52-week high, with potential to surpass this level.

Microchip Technology Inc. (MCHP)

Microchip Technology Inc. is a company that manufactures microcontrollers and analog semiconductors, serving clients in various industries including automotive, industrial, defense, consumer goods, aerospace, computing, and communications.

Its earnings per share are $0.77, and it posted better-than-expected performance in its quarter ending March 31, 2022, with record net sales of $1.84 billion. The company has significant growth potential and recently announced a cash dividend of $0.276 per share.

TD Synnex Corp. (SNX)

TD Synnex is a company providing inter-enterprise information technology (IT) services. In 2021, Tech Data and Synnex merged, forming TD Synnex. It's a company with a market capitalization of $9.7 billion and revenue of $15.47 billion. Its dividend yield is 1.18%, with earnings per share of $5.90.

Hewlett Packard Enterprise (HPE)

A well-known name in the tech industry, Hewlett Packard Enterprise sells a range of products and services including high-performance computing, cloud services, AI, storage, and software. The company has a market capitalization of $21.54 billion. Its dividend yield is 2.89%, and the current stock price is $16.59.

Mandiant (MNDT)

Mandiant provides cybersecurity incident response and network defense solutions. The company gained prominence in 2013 with a report on Chinese cyber espionage activities. In March 2022, Google announced its intention to acquire the company and integrate it into its Google Cloud division. This marks the largest deal in the company's history, with Google paying $5.4 billion.

Mandiant has a market capitalization of $5.2 billion, with the stock trading at $21 at the time of writing, close to its 52-week high of $23. MNDT stock could soar later this year after the Google transaction completes.

HP Inc. (HPQ)

HP is a well-known brand in the industry, selling laptops, desktops, printers, workstations, and providing support services. The products it operates have become indispensable in our lives, and their demand will continue to grow.

With a current market capitalization of $38 billion, a trailing twelve months P/E ratio of 6.6, the stock seems undervalued today. It is priced at $38 per share, with significant growth potential.

Technology Select Sector SPDR ETF (XLK)

In fact, holding core positions in this ETF is quite common for investors as it exposes them to numerous tech companies and is one of the simplest ways to invest in the entire industry.

This ETF not only provides exposure to the industry's stalwarts but also to the biggest momentum stocks in the tech sector.

Switch (SWCH)

Switch is a technology infrastructure company, developing retail colocation data centers to aid in the expansion of the internet and related services. It has over 950 customers across different industries. With a market capitalization of $8.18 billion, the stock has grown by 60% over the past five years and still has a long way to go. The company will be acquired by DigitalBridge Group for $11 billion, including debt repayment.

Fortinet Inc. (FTNT)

Fortinet is a company that provides network security services to global enterprises, government agencies, and businesses, using machine learning and artificial intelligence to provide suitable solutions for clients. The company builds and sells security solutions such as intrusion defense systems, physical firewalls, endpoint security components, and antivirus software.

The company's market capitalization is $44.3 billion, with a five-year stock growth rate of 575%—currently trading hot, well below its 52-week high.

Why Invest in Tech Stocks Now?

Technology is one of the most exciting investment sectors, as it involves investing in companies that could experience explosive growth and potentially change people's lifestyles completely.

Technology can be used in multiple ways that we may not even anticipate, and when you multiply this change by the vast number of other driving factors and industries globally, you can see how much of a share tech stocks have in growth. As the speed of computers increases, the importance of technology for conducting business and personal life also grows. Time is money, and the sooner you get in, the more you can benefit from the growth of the technology sector.

Considerations

Firstly, many tech stocks have high speculative nature. Of course, this is part of what makes them so attractive, as most traders understand that early investments in companies like Adobe will bring huge profits.

However, you also need to remember that many of these companies may or may not thrive. The problem with technology is that it is dynamic, almost constantly changing, and if you don't understand the trends in technology, you may find yourself with a company going in the opposite direction of the tech trend.

Tech stocks will often be your fastest-growing stocks, but they should not constitute your entire investment portfolio. The tech industry is an exciting field, but it's also a difficult one to time.