Stock market had one of its best runs in 2013 with S&P 500 having returns of 26.4% and excellent performances for different sectors. If you are planning to invest in the stock market in 2014 and haven’t decided a sector, technology stocks might be an excellent option for you. Telecom and technology industry witnessed an increase of nearly 18%, which might seem dwarfish against S&P 500 returns, with some excellent winners within the niche. Internet stocks are certainly among the best options available to invest your money.
Best Technology Stocks to Buy in 2014
Apple (AAPL): The tech sector has shown significant results in the past few years and Apple is one of the cheapest tech stocks. While ending the holiday season with high iPhone and tablet sales, Apple is looking better with a new range of product in 2014. Apple is planning to get into the Chinese Smartphone market, which could bring another 700 million-customer base for the company. There are rumors that Apple might even release the much awaited Apple TV, but with or without the TV, the company might provide some excellent returns.
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CISCO (CSCO): While some investors might argue about the recent performance of the company, CISCO has an amazing prowess in the IT field. This global telecommunication infrastructure firms has acquired several companies and has some of the strongest financial foundations. As per the current records, the company has a net cash of $30 billion and pays an amazing dividend on 3.2%. The company has increased its dividends at an aggressive rate in the past few years. The company might have lagged in the past few years, but with the new strategies in place, one can expect an amazing growth of up to 20% in its share price.
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ROVI Corp. (ROVI): ROVI Corp. offers diversified technology solutions with its client list including companies like Apple, Google, Sony, Toshiba, Samsung, Comcast, and Verizon. Its major services include satellite communications, consumer electronics manufacturers, cables, internet service providers, and offering services to online entertainment companies. The second half of 2013 was not an impressive as the first half for ROVI Corp. However, the company’s approach to get potential value on its long-term licensing agreements is effective for future growth. With a series of new patent license agreement in 2014 with companies like Sony and Samsung, one can expect better returns and share price growth in 2014.
Microsoft (MSFT): Microsoft is among the biggest IT-cap companies with a market cap of $303.70 Billion. The company has performed significantly well in 2013 with a growth of 34% in its share price. It offers both growth as well as value to its investors. It has a huge cash pile and with some significant policy upgrades, it can make some serious money. The company offers a 3% dividend yield and EPS of 2.67. For 2014, it has a median target of $37.00 with a upper estimate of $45.00 and lower estimate of $28.00.