The recent rally by technology stocks have investors looking for opportunities. And when tech is a leader, the market can give you a powerful and lasting move higher.
CNBC recently reached out to three portfolio managers to get their insight on which tech stocks seem the best avenue for growth.
Although Apple has been off on performance this year, David Pearl, co-chief investment officer of Epoch Investment Partners, believes the tech giant is “still the most profitable company in the stock market.”
“With Apple, the expectations were low. That said, Apple is now the classic value stock, large dividend, with huge amounts of cash,” he said.
Additionally, Pearl sees the cloud business as very competitive and very capital-intensive.
“We like the cloud as a growth opportunity,” he said. “The cloud is real and is such a good payback for enterprises and small businesses to move to the cloud, and it’s actually more secure, so there’s a lot of reasons the cloud will grow.”
John Maloney, chairman and CEO of M&R Capital Management, is also bullish on Apple. “I think that Apple is being unfairly categorized as a company in decline,” he said. “I think people ignore that Apple has an ecosystem.
“They have a vast, growing fee-based business that people are ignoring,” he said, referring to Apple’s retail stores.
As for his tech pick, Maloney, a large-cap value manager, is betting on Google. “We like Google because they’re going into the cloud, but they have a much more reasonable valuation,” he said.
Nick Galluccio, president and CEO of Teton Advisors, likes the semiconductor companies. One in particular is Intersil ISIL. It’s a mix-signal analog company tied to automotive.
Galluccio said that “it’s about a $1.7 billion (£1.16 billion) market-cap firm, with no debt, and 4 per cent dividend yield.”
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