Are These The Best Tech Stocks To Have On Your Watchlist This Week? 3 To Consider
Tech stocks have been on a roll throughout 2020. Boosted by coronavirus tailwinds, some of them have even continued to tear through the stock market as we begin 2021. You may be asking, why is that the case? Well, it is often easy to overlook just how much technology makes up the world around us. Whether it is the device you are reading this on or the internet that enables it, tech is involved. Naturally, with technology being so important to humanity, tech companies almost always have new demands to meet. They do so via new inventions and cyclical updates on current products. We have seen the latter in commercial tech companies such as Apple (AAPL Stock Report) whose iPhone product line has brought in billions in revenue.
If anything is constant, it is change. The tech industry is one that constantly grows and changes with the times. Take Amazon (AMZN Stock Report) for example. E-commerce empire aside, it has grown to become one of the largest tech companies on the market. It is a key player in the fields of cloud computing and streaming, both of which have brought many returns for the company. With such dynamic companies, it is not surprising why there is so much attention surrounding the industry.
With all this in mind, I can imagine that the tech industry has more room to grow moving forward. Likewise, there is always another innovation or new upgrade somewhere down the pipeline. This can make it hard to keep track of the latest movers in the market. As such, here is a list of the top tech stocks to watch this upcoming week.
Best Tech Stocks To Watch In January 2021
- Roku Inc. (ROKU Stock Report)
- 3D Systems Corporation (DDD Stock Report)
- Stratasys Limited (SSYS Stock Report)
Top Tech Stocks To Watch This Week #1: Roku Inc
Streaming titan Roku (NASDAQ: ROKU) has seen its share prices rise by over 170% in the past year. It has become one of the top tech companies on the stock market now partly because of coronavirus tailwinds. With consumers spending more time binge-watching TV at home, this is no surprise. In fact, ROKU stock jumped by over 10% during yesterday’s trading session. Could this be a sign of what lies ahead for the company? Let’s take a closer look.
On January 6, Roku announced that it had surpassed 50 million active accounts by the end of 2020. Furthermore, the company also mentioned that an estimated 58.7 billion hours of content was streamed in 2020 which translates to a 55% year-over-year rise. CEO Anthony Wood said, “The world is moving to streaming and we look forward to continuing to help viewers, advertisers, content publishers, and TV manufacturers succeed in the Streaming Decade.” These figures impressed investors and analysts alike. Needham analyst Laura Martin upped her price target for ROKU stock from $315 to $400. Accordingly, the stock has seen upward movement closing in on that figure. Martin wrote, “What’s clear to us from 2020 is that ROKU has won the streaming wars in the US.” Roku seems confident moving forward, and investors appear to feel the same way as well.
In terms of financials, the company saw green across the board in its recent quarter fiscal posted in November. Roku saw year-over-year surges of 73% in total revenue and 171% in cash on hand. Moreover, CNN mentioned that Roku is in talks to buy content from mobile streaming company Quibi. It would be an understatement to say that the company is firing on all cylinders moving forward. Will ROKU stock see new highs in 2021? You tell me.
Top Tech Stocks To Watch This Week #2: 3D Systems Corporation
Another top tech stock to consider now is 3D (NYSE: DDD). It is a South Carolina-based company that works with 3D printers along with related products and services. To point out, DDD stock more than doubled in price over yesterday’s trading session. However, it has taken a breather this morning, falling over 11% in premarket trading. You may be curious as to what could have riled up investors that much.
Yesterday, 3D revealed that it had sold off two non-essential software businesses for the sum of $64 million. Adding to that, it also gave investors a preview of its fourth-quarter revenue which overshot current expectations. We’re looking at numbers between $170 million to $176 million. Other pieces of good news include the repayment of all outstanding debts and termination of its ‘at-the-market’ equity offering program. With these out of the way, I can see why investors were so eager to jump on DDD stock. CEO Dr. Jeffrey Graves summed it up, “Having surpassed our prior year, pre-COVID revenue performance in Q4, and with continued strong focus on operational execution, we are excited about the trajectory we are on as we enter the new year.”
For one thing, 3D seems to be recovering well from pandemic-related impacts. Its current top-line projections for its fourth-quarter revenue indicate a 30% quarter-over-quarter increase. Regardless, here is what Graves had to say in the recent quarter fiscal, “While the challenges of the pandemic persist, we were pleased to deliver strong sequential quarterly growth in both our Healthcare and Industrial businesses of approximately 20%, as markets incrementally opened around the world.” Given all of this, do you think DDD stocks are worth watching this month?
Top Tech Stocks To Watch This Week #3: Stratasys Limited
Third, we have Stratasys (NASDAQ: SSYS). Similar to our previous entry, Stratasys manufactures 3D printers and 3D production systems. These are mainly used for office-based rapid prototyping and direct digital manufacturing solutions. Yesterday, SSYS stock soared over 38% at the closing bell. This lines up with its recent acquisition of 3D printing start-up Origin.
Through the agreement, it will acquire Origin in a cash-and-stock deal worth $100 million. In theory, Origin’s proprietary resin-based printing technology would synergize well with Stratasys’s 3D printing infrastructure. Aside from that, Origin’s software-centric solutions would help Stratasys gain a competitive edge in the 3D-printed market overall. This arrangement is estimated to generate incremental annual revenues of about $200 million within the next five years. Seeing as Stratasys is bolstering its portfolio now, we could be looking at interesting times ahead for SSYS stock.
In its third-quarter fiscal reported last November, the company brought in total revenue of $127 million. Additionally, it ended the quarter with $252 million. All things considered, the company saw sequential improvement over the quarter despite the pandemic affecting business. CEO Yoav Zeif said, “We are laser-focused on leading the polymer 3D printing market by delivering the most innovative, next-gen technologies to address the fastest-growing and most transformative manufacturing applications while leveraging the strongest go-to-market infrastructure in our industry. We believe that our innovations of today will drive competitive production advantages for the factories of tomorrow, resulting in growth and value creation for our customers and shareholders.” In light of all this, will you be adding SSYS stock to your watchlist?
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.