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10 Best Tech Stocks to Buy After the Market’s Historic Sell-Off in 2020

10 Best Tech Stocks to Buy After the Market’s Historic Sell-OffPosted on Friday, March 27th, 2020 by MarketBeat Staff

Technology stocks are among the most volatile in the market. The allure of big gains comes with the risk of sharp downturns. When the market is trending upwards, these stocks have a tendency to lead the way. Conversely, when the market is selling off, tech stocks post some of the largest losses. And in the coronavirus crash tech stocks took their usual beating.

But an interesting dynamic is happening. As stocks are trying to stage a comeback, many tech stocks are being left behind. Many of the leading tech stocks trade on the NASDAQ exchange. However, as the Dow Jones Industrial Average (DJIA) and S&P 500 posted gains on March 25, the NASDAQ stayed down.

And that’s an opportunity for investors who know where to look. We’ve put together this presentation to give you ten technology stocks that look to be solid bets no matter which way the market moves. Some of the stocks you’ll see are companies that have a business model that is perfectly suited for today’s social distancing environment.

#1 - Zoom Video Communications (NASDAQ:ZM)

Zoom Video Communications logo

Zoom Video Communications When workers are given the “all clear” to return to work, some workers are going to realize that they don’t want to return to business as usual. And with Zoom (NASDAQ:ZM), they may not have to.

Zoom has been around since 2011. Since that time, many businesses have discovered that Zoom’s video conferencing and work collaboration tools are a good way to lower travel budgets. But the coronavirus may be the catalyst that makes working from home a viable alternative for some workers. Demand has been strong for the company’s platform.

The company just went public last year. And although the stock has more than doubled since its initial public offering (IPO) nearly all of that growth has happened since the beginning of 2020. Plus, the stock is up over 30% in the last month. The stock has come down a bit from its all-time high, but demand for the company’s software is only likely to increase.

About Zoom Video Communications
Zoom Video Communications, Inc. provides a video-first communications platform that changes how people interact primarily in the Americas, the Asia Pacific, Europe, the Middle East, and Africa. It connects people through frictionless video, voice, chat, and content sharing. The company's cloud-native platform enables face-to-face video experiences and connects users across various devices and locations in a single meeting. It serves education, entertainment/media, enterprise infrastructure, finance, healthcare, manufacturing, non-profit/not for profit and social impact, retail/consumer products, and software/Internet industries, as well as individuals. The company was formerly known as Zoom Communications, Inc. and changed its name to Zoom Video Communications, Inc. in May 2012. Zoom Video Communications, Inc. was founded in 2011 and is headquartered in San Jose, California.

Current Price: $179.48
Consensus Rating: Hold
Ratings Breakdown: 7 Buy Ratings, 13 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $122.42 (-31.8% Upside)



#2 - RingCentral (NYSE:RNG)

RingCentral logo

Another company that looks to emerge strong from the work-at-home movement is cloud communications provider RingCentral (NYSE:RNG). If you think of Zoom as more peer-to-peer communication, then RingCentral is more outward facing. The simple premise is that RingCentral allows employees to stay in touch with their customers wherever their customers are and however they want to be reached.

This is a competitive area and RingCentral faces challenges from larger enterprise players like Cisco (CSCO) and Microsoft (MSFT) on the one hand. And at the other end of the spectrum there are “freemium” providers such as Zoom. Therefore, one of the keys to surviving in this space will be through partnerships. RingCentral recently entered into a partnership with Avaya (AVYA). This will mean that eventually RingCentral’s cloud services will be supported by every Avaya endpoint. The company is expecting this partnership to contribute to its financials by the end of the year.

Shares of RNG have dropped about 18% in the recent sell-off, but have staged a rally of nearly 40% in the last two weeks.

About RingCentral
RingCentral, Inc. provides software-as-a-service solutions that enable businesses to communicate, collaborate, and connect primarily in North America. The company's products include RingCentral Office, provides communication and collaboration across various modes, including high-definition voice, video, SMS, messaging and collaboration, conferencing, online meetings, and fax through smartphones, tablets, PCs, and desk phones; RingCentral Professional, a cloud based virtual telephone service for professionals, as well as provides inbound call answering and management services, and includes inbound local, long-distance, and toll-free minutes; and RingCentral Fax that provides online fax capabilities that allow businesses to send and receive fax documents without a fax machine. Its products also comprise RingCentral Contact Center, a collaborative contact center solution that delivers omni-channel; and RingCentral Glip, a team messaging and collaboration solution that allows a range of teams to stay connected through various modes of communication through an integration with RingCentral Office. The company serves a range of industries, including financial services, healthcare, legal services, real estate, retail, technology, insurance, construction, hospitality, and state and local government, as well as others. It sells its products through a network of direct sales representatives, as well as sales agents and channel partners. The company was incorporated in 1999 and is headquartered in Belmont, California.

Current Price: $274.25
Consensus Rating: Buy
Ratings Breakdown: 23 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $260.91 (-4.9% Upside)



#3 - Amazon (NASDAQ:AMZN)

Amazon.com logo

Amazon (NASDAQ:AMZN) is working hard to break away from its identity as “just” an e-commerce company. But for right now being an e-commerce company is exactly what this economy needs. As more and more Americans are doing their part to follow shelter in place directives, there’s never been a better time for Amazon. And that’s saying something.

But Amazon is not only providing a service by keeping the pipeline of commerce open; it’s also hiring workers. Amazon will hire up to 100,000 full-time and part-time employees in the United States for warehouse and delivery jobs.

The company also announced it is increasing wages and adopting a more lenient sick policy to keep workers engaged. Although many of these jobs may only be temporary, they are necessary to holding together an economy that has been ripped apart.

Since the market peaked on February 19, shares of Amazon are down 11%. But the S&P 500 has dropped nearly 30%. And the other FAANG stocks are all down at least 20%.

About Amazon.com
Amazon.com, Inc. engages in the retail sale of consumer products and subscriptions in North America and internationally. The company operates through three segments: North America, International, and Amazon Web Services (AWS) segments. It sells merchandise and content purchased for resale from third-party sellers through physical stores and online stores. The company also manufactures and sells electronic devices, including Kindle e-readers, Fire tablets, Fire TVs, and Echo devices; provides Kindle Direct Publishing, an online service that allows independent authors and publishers to make their books available in the Kindle Store; and develops and produces media content. In addition, it offers programs that enable sellers to sell their products on its Websites, as well as their own branded Websites; and programs that allow authors, musicians, filmmakers, skill and app developers, and others to publish and sell content. Further, the company provides compute, storage, database, and other AWS services, as well as compute, storage, database offerings, fulfillment, publishing, digital content subscriptions, advertising, and co-branded credit card agreement services. Additionally, it offers Amazon Prime, a membership program, which provides free shipping of various items; access to streaming of movies and TV episodes; and other services. It serves consumers, sellers, developers, enterprises, and content creators. Amazon.com, Inc. has a strategic partnership with Volkswagen AG. The company was founded in 1994 and is headquartered in Seattle, Washington.

Current Price: $2,442.37
Consensus Rating: Buy
Ratings Breakdown: 44 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $2,562.42 (4.9% Upside)



#4 - Shopify (NYSE:SHOP)

Shopify logo

Shopify (NYSE:SHOP) is the rogue alternative to Amazon. And while the coronavirus is taking its toll on brick-and-mortar stores, it is creating an opportunity for SHOP. Many businesses want their products listed on Amazon, but they lose control over their products. That’s not the case with Shopify.

Shopify helps large and small businesses come up with e-commerce solutions that allow them to stay in control. The stock is not cheap by traditional metrics. But when it comes to disruptive companies like Shopify some of the old rules don’t apply.

The stock is up over 10% for the year. And many short sellers were caught by surprise at the strength of the company’s last earnings report. The coronavirus will not be the end of brick and mortar, but it will force many small businesses to re-evaluate their business model. That puts Shopify in a good position to keep disrupting the e-commerce space.

About Shopify
Shopify Inc. provides a cloud-based multi-channel commerce platform for small and medium-sized businesses in the United States, the United Kingdom, Canada, Australia, and internationally. Its platform provides merchants with a single view of business and customers in various sales channels, including Web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces; and enables to manage products and inventory, process orders and payments, ship orders, build customer relationships, leverage analytics and reporting, and access financing. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was founded in 2004 and is headquartered in Ottawa, Canada.

Current Price: $757.80
Consensus Rating: Hold
Ratings Breakdown: 8 Buy Ratings, 19 Hold Ratings, 2 Sell Ratings.
Consensus Price Target: $625.27 (-17.5% Upside)



#5 - Etsy (NASDAQ:ETSY)

Etsy logo

If you’re looking for a short-term play on the social distancing period, Etsy (NASDAQ:ETSY) is a good place to start. Every now and then, you get the right stock for the right time. Companies like Hobby Lobby and Michael’s are geared to the crafting community. So is Etsy. But whereas these other stores have a brick-and-mortar presence, Etsy is totally e-commerce. It’s made for a time like this.

The stock is on a tear. Since closing at around $31 per share on March 20, the stock has rallied nearly 40% to virtually wipe out any year-to-date losses. As the nation and the world stays indoors over the next few weeks or longer, Etsy will have a window in which to generate revenue.

However, I don’t see Etsy as a long-term play. When consumers are free to move out and about, I expect a stock like ETSY will decline on lower revenue. After all, the one thing people won’t want to do is more craft projects. And since reaching its all-time high at just over $70 per share in March of 2019, the stock is down over 40%. No amount of revenue is going to close that gap.

About Etsy
Etsy, Inc. operates Etsy.com, a commerce platform to make, sell, and buy goods online and offline primarily in the United States, United Kingdom, Canada, Australia, France, and Germany. It provides various seller services and tools that are designed to help entrepreneurs for starting, managing, and scaling their businesses. The company offers approximately 50 million items across approximately 50 retail categories to buyers. It also provides various seller services, including Etsy payments, a payment processing service; promoted listings, an on-site advertising service that allows sellers to pay for prominent placement of their listings in search results; shipping labels, which allows sellers in the United States and Canada to purchase discounted shipping labels; and pattern, a service that allows sellers to build custom Websites, as well as offers seller tools and education resources to manage the administrative side of their businesses. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.

Current Price: $80.98
Consensus Rating: Buy
Ratings Breakdown: 14 Buy Ratings, 3 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $75.05 (-7.3% Upside)



#6 - Apple (NASDAQ:AAPL)

Apple logo

Perhaps no tech company was the face of the coronavirus as much as Apple (NASDAQ:AAPL). The company had to shut down operations in Wuhan, China the epicenter of the outbreak. And even though that production is coming back on line, the company is closing stores in the United States in response to social distancing.

And many consumers are considering cutting back on purchases which is causing many to believe that the company will see declining iPhone sales in 2020. The company was previously thinking that 2020 sales would be strong as the company introduced its first 5G iPhones.

But it’s hard to see the current crisis as being an existential threat to Apple’s business. As CEO Tim Cook reminded employees, the company has about $200 billion in cash and cash equivalents. They are well prepared to weather this storm.

As far as demand? We’ve been down that road before too. But when the coronavirus recedes, the American economy will ignite, as will consumer’s appetite. Remember the company sold an unexpectedly high number of iPhone 11’s that had as its main feature … a better camera.

2020 may not be a banner year for Apple, but the opportunity to buy shares at a 25% discount to the company’s 52-week high is a rare opportunity.

About Apple
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. It also sells various related services. The company offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multi-purpose tablets; and wearables, home, and accessories comprising AirPods, Apple TV, Apple Watch, Beats products, HomePod, iPod touch, and other Apple-branded and third-party accessories. It also provides digital content stores and streaming services; AppleCare support services; and iCloud, a cloud service, which stores music, photos, contacts, calendars, mail, documents, and others. In addition, the company offers various service, such as Apple Arcade, a game subscription service; Apple Card, a co-branded credit card; Apple News+, a subscription news and magazine service; and Apple Pay, a cashless payment service, as well as licenses its intellectual property, and provides other related services. The company serves consumers, and small and mid-sized businesses; and the education, enterprise, and government markets. It sells and delivers third-party applications for its products through the App Store, Mac App Store, and Watch App Store. The company also sells its products through its retail and online stores, and direct sales force; and third-party cellular network carriers, wholesalers, retailers, and resellers. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.

Current Price: $317.94
Consensus Rating: Buy
Ratings Breakdown: 28 Buy Ratings, 11 Hold Ratings, 4 Sell Ratings.
Consensus Price Target: $301.68 (-5.1% Upside)



#7 - Twitter (NYSE:TWTR)

Twitter logo

Social media is becoming an increasingly important way that consumers consume news. Twitter (NYSE:TWTR) has one advantage in this regard. For better or worse, it tends to be the medium that professional journalists use to break stories. Users look for that all-important blue checkmark and news becomes viral. Twitter has also taken steps to fight the posting of misleading information about the coronavirus.

The coronavirus outbreak is making consumers hungry for news. While I advocate a quality over quantity strategy, you don’t fight human behavior. This positions the company well to confront a trend in which advertisers are becoming increasingly leery of paying premium ad space. That’s a combination that should entice advertisers to at least continue advertising on the platform.

TWTR stock is down about 20% for the year, but has been rallying of late. As other social media companies such as Facebook (FB) are drawing the attention and ire of politicians and regulators, Twitter is flying under the radar which may be a great place for the company to be.



About Twitter
Twitter, Inc. operates as a platform for public self-expression and conversation in real time. The company offers various products and services, including Twitter, a platform that allows users to consume, create, distribute, and discover content; and Periscope, a mobile application that enables user to broadcast and watch video live with others. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services. In addition, the company offers a set of tools, public APIs, and embeddable widgets for developers to contribute their content to its platform, syndicate and distribute Twitter content across their properties, and enhance their Websites and applications with Twitter content. Further, it provides subscription access to its public data feed for data partners. The company operates in the United States and internationally. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California.

Current Price: $30.97
Consensus Rating: Hold
Ratings Breakdown: 7 Buy Ratings, 24 Hold Ratings, 5 Sell Ratings.
Consensus Price Target: $32.76 (5.8% Upside)



#8 - Oracle (NYSE:ORCL)

Oracle logo

The race is on to find a workable vaccine and treatments for the coronavirus. The sooner the world has effective treatments, the sooner the economy can return to normal. Oracle (NYSE:ORCL) is at the forefront of this race.

The company is creating, and donating, a website and mobile apps that will allow the government to collect data on the treatment of the coronavirus using antimalarial drugs. The government will maintain oversight of the project.

The use of data will be key to convincing healthcare officials that antimalarial drugs have more than circumstantial evidence of effectiveness.

"Many of the things that you hear out there are what I had called anecdotal reports," White House Coronavirus Task Force member Anthony Fauci said on the antimalarial drugs on Saturday, as per the Post.

"They may be true, but they're anecdotal. So the only thing that I was saying is that if you really want definitively to know if something works, that you've got to do the kind of trial that you get, the good information."

About Oracle
Oracle Corporation develops, manufactures, markets, sells, hosts, and supports application, platform, and infrastructure solutions for information technology (IT) environments worldwide. The company provides services in three primary layers of the cloud: Software as a Service, Platform as a Service, and Infrastructure as a Service. It offers human capital and talent management, enterprise resource planning, customer experience and relationship management, procurement, supply chain management, project portfolio management, business analytics and enterprise performance management, and industry-specific application software, as well as financial management and governance, and risk and compliance applications. The company also licenses its Oracle Database for storage, retrieval, and manipulation of data; and Oracle Fusion Middleware software to build, deploy, secure, access, extend, and integrate business applications, as well as automate business processes. In addition, it provides a range of development tools, identity management, and business analytics software solutions for mobile computing development to address the development needs of businesses; Java, a software development language; and big data solutions. Further, the company provides Oracle Engineered Systems, servers, storage, industry-specific hardware, and hardware support products, as well as operating systems, virtualization, management, and other hardware-related software. Additionally, it provides consulting services, including IT strategy alignment, enterprise architecture planning and design, initial software implementation and integration, application development and integration, security assessments, and ongoing software enhancements and upgrade services; and customer support and education services. The company serves businesses, government agencies, educational institutions, and resellers. Oracle Corporation was founded in 1977 and is headquartered in Redwood City, California.

Current Price: $53.77
Consensus Rating: Hold
Ratings Breakdown: 12 Buy Ratings, 14 Hold Ratings, 1 Sell Ratings.
Consensus Price Target: $53.25 (-1.0% Upside)



#9 - Nvidia (NASDAQ:NVDA)

NVIDIA logo

It might seem crazy to include a semiconductor stock in a list of tech companies to thrive in these conditions. But Nvidia (NASDAQ:NVDA) has been waiting for this moment. 2020 is bringing new gaming consoles to the market.

Remember that Nvidia is going to benefit from expected demand. And that demand is likely to increase as more consumers stay at home. Like Etsy, this may be a short-term opportunity. The semiconductor space is notoriously cyclical. Still, investors that are willing to jump on short-term opportunities could see a nice reward.

For example, Bank of America analyst Vivek Arya just reiterated his buy rating for NVDA stock and gave it a price target of $300.That would be an increase of more than 15% from current levels.

 Plus, Nvidia is seeing a fair amount of sales coming from its data center business. As companies like Amazon and Domino’s (DPZ) continue to have an insatiable demand for capturing consumer data to make decisions.

About NVIDIA
NVIDIA Corp. engages in the design and manufacture of computer graphics processors, chipsets, and related multimedia software. It operates through the Graphics Processing Unit (GPU) and Tegra Processor segments. The GPU segment comprises of product brands which aims specialized markets including GeForce for gamers; Quadro for designers; Tesla and DGX for AI data scientists and big data researchers; and GRID for cloud-based visual computing users. The and Tegra Processor segment integrates an entire computer onto a single chip, and incorporates GPUs and multi-core CPUs to drive supercomputing for autonomous robots, drones, and cars, as well as for consoles and mobile gaming and entertainment devices. The company was founded by Jen-Hsun Huang, Chris A. Malachowsky, and Curtis R. Priem in January 1993 and is headquartered in Santa Clara, CA.

Current Price: $355.02
Consensus Rating: Buy
Ratings Breakdown: 31 Buy Ratings, 4 Hold Ratings, 4 Sell Ratings.
Consensus Price Target: $344.14 (-3.1% Upside)



#10 - DocuSign (NASDAQ:DOCU)

Docusign logo

DocuSign (NASDAQ:DOCU), like Zoom finds itself with a perfect opportunity to expand its user base. The company is coming off a strong 2020 fiscal year that ended on January 31, 2020. At that time, the company forecast forward guidance of a 31% revenue gain for fiscal 2021. In fact, DocuSign is on pace to log $1 billion in revenue, putting it in elite company among software-as-a-service (SaaS) companies.

However, that was before workers were ordered to work from home. DocuSign should see usage increase during this period of social distancing. And as more businesses try the technology, it’s likely to continue to generate revenue well into the future.

The market seems to agree. Despite the market sell-off, DOCU stock has been on a surge and is now up over 10% in 2020. Another catalyst for the stock is their proposed acquisition of Seal Software. Seal provides artificial intelligence (AI) powered contract discovery and contract management software solutions.



About Docusign
DocuSign, Inc. provides cloud based software in the United States. The company offers e-signature solution that enables businesses to digitally prepare, execute, and act on agreements. The company sells its products through direct, partner-assisted, and Web-based sales. It serves enterprise businesses, commercial businesses, and small businesses, such as professionals, sole proprietorships and individuals. The company was 2003 and is headquartered in San Francisco, California.

Current Price: $139.74
Consensus Rating: Buy
Ratings Breakdown: 12 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target: $93.73 (-32.9% Upside)

 

As you consider buying tech stocks at this time, remember that while our economy will come back, it may not come back in exactly the same way we expect. Anytime our country has gone through a crisis of this sort, there are changes. We will move forward, but we won’t be exactly the same.

And savvy investors know how to find the companies that are poised to capitalize on those changes.

This current downturn in the market is not like the dot-com bubble of 2000. It’s also not like the tech wreck of late 2018. The fundamentals for many technology stocks are as strong know as they were before the words social distancing forever entered our vocabulary.

That means investors could be on the verge of a historic buying opportunity. And these 10 stocks represent some of the companies that every investor should consider as they make a plan to have their portfolio recover from the effects of this recent sell-off.

7 Virus-Resistant Retail Stocks to Own Now

The U.S. economy contracted by 5% in the first quarter. That was slightly larger than the 4.8 decline that was previously forecast. On the same day that GDP was released, we also learned that the ranks of those filing for unemployment claims exceeded 40 million.

But as sobering as those numbers are, they’re not completely surprising. The U.S. economy was effectively shut down as citizens did their part to slow the spread of the novel coronavirus. But the cost of those efforts is just being measured.

And one of those measurements comes in the all-important Consumer Confidence Index. The index ticked up slightly in May to 86.6. While this number is about 30% lower than where the index sat In February, it’s significantly higher than where it sat at the trough of the financial crisis and subsequent recession.

And a big reason for that is that while the brick-and-mortar economy shut down, the digital economy helped give the economy a pulse.

Consumption is a key part of our economy. That’s why consumer confidence makes up 70% of the U.S. economy. And one of the key ways that consumers express that confidence or lack thereof, is in the retail sector.

For the last few years, the story of retail has been about which retailers were going to be able to successfully compete in the e-commerce space that is still owned by Amazon (NASDAQ:AMZN). Sadly, we’re discovering that some companies, like J.C. Penney, were late to adapt in a meaningful way. But that isn’t the case for all retailers.

In this special presentation, we are identifying 7 retail stocks that have done well through this turbulent time and should use that as a springboard to continued growth.

View the "7 Virus-Resistant Retail Stocks to Own Now" Here.






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