3 Tech Stocks to Watch for Lasting Portfolio Strength – TradingView News

The technology industry continues to grow to meet the growing demand in an ever-changing world. Technology stocks, known for their steady growth trend, thrive on the consistently high demand for technology solutions. That’s why investors might want to consider following fundamentally sound technology stocks like Microsoft Corporation MSFTApple Inc. AAPLand Alphabet Inc. GOOGLE.

As businesses rely heavily on software solutions to optimize operations, enhance customer experiences, gain data-driven insights, and protect their systems as they strive to adapt and compete in an ever-evolving digital landscape, the U.S. software market is expected to grow at a CAGR of around 7.2% through 2030.

Additionally, demand for business software and services is expected to be driven by the rapid growth of enterprise data and business process automation in target industries such as retail, manufacturing, healthcare and transportation.

Therefore, it is estimated that by 2030 the global business software and services market will grow at a CAGR of 11.9%.

With these favorable trends in mind, let’s take a look at the basics of selecting three tech stocks.

Microsoft Corporation (MSFT)

MSFT develops and supports software, services, devices, and solutions worldwide. The company operates in the Productivity & Business Processes segments; Intelligent Cloud; and More Personal Computing.

May 1 MSFT, Brookfield Asset Management Ltd. BAMand Brookfield Renewable Partners L.P. BEP announced a global renewable energy framework agreement to help the company achieve its goal of purchasing 100% of its electricity from zero-carbon energy by 2030.

This agreement builds on their existing partnership and aims to decarbonize the global energy supply. It provides MSFT with access to new renewable energy capacity to support growing demand for cloud services.

On April 29, MSFT and Axel Springer SE announced an expanded partnership in advertising, AI, content and cloud computing. The strategic collaboration aims to leverage cutting-edge innovation to support independent journalism worldwide and accelerate growth in the AI ​​era by combining their strengths in digital publishing and technology.

MSFT’s total revenue increased 17% year over year to $61.86 billion in the third quarter ended March 31, 2024. Its operating income increased 23.4% from the year-ago value to $27.58 billion. The company’s net income and EPS were $21.94 billion and $2.94 billion, respectively, reflecting an increase of 19.9% ​​and 20% compared to the prior-year quarter.

Additionally, the company’s total assets as of March 31, 2024 were $484.27 billion, up from $411.98 billion as of June 30, 2023.

The consensus revenue estimate of $64.37 billion for the fiscal second quarter (ended June 2024) represents a 14.6% year-over-year increase. The consensus EPS estimate of $2.93 for the current quarter represents a 9% year-over-year improvement. The company has a great history of surprises, topping consensus revenue and EPS estimates in each of the trailing four quarters.

MSFT shares have gained 11.4% over the past month and closed the last session at $460.77.

MSFT’s POWR Ratings reflect its mixed outlook. The stock has an overall grade of C, which means Neutral in our proprietary rating system. POWR Ratings are calculated based on 118 different factors, with each factor weighted optimally.

MSFT has a B rating for Stability, Sentiment, and Quality. It ranks 18th out of 41 stocks in the Software – Business industry.

Apple Inc. (AAPL)

AAPL designs, manufactures, and sells smartphones, personal computers, tablets, wearable devices, and accessories worldwide. It offers iPhone, a line of smartphones; Mac, a line of personal computers; iPad, a line of multifunction tablets; and wearable devices, home, and accessories, including AirPods, Apple TV, Apple Watch, Beats products, and HomePod.

On June 10, AAPL unveiled Apple Intelligence, a personal intelligence system for iPhone, iPad, and Mac. The system combines the power of generative models with personal context to deliver incredibly useful and relevant information. It is deeply integrated with iOS 18, iPadOS 18, and macOS Sequoia.

Apple Intelligence leverages the power of Apple Silicon to understand and create language and images, take action in apps, and draw on personal context to simplify and accelerate everyday tasks. With its unique approach, AAPL combines generative AI with user context to deliver helpful intelligence.

On the same day, AAPL also launched a suite of innovative new tools and resources to enable developers around the world to design more efficient and productive apps across all Apple platforms. With Xcode 16 beta, developers can save time in their development process and gain access to features like Swift Assist and predictive code completion.

AAPL reported total net sales of $90.75 billion in the second quarter ended March 30, 2024, with services net sales increasing 14.2% year over year to $23.87 billion. The company’s net income and earnings per share were $23.64 billion and $1.53 billion, respectively, for the quarter.

In addition, the company’s cash and cash equivalents as of March 31, 2024 amounted to $32.69 billion, while as of September 30, 2023, it amounted to $29.96 billion.

Analysts are forecasting AAPL’s third-quarter (ended June 2024) revenue to rise 2.4% year-over-year to $83.74 billion, and current-quarter earnings per share (EPS) to rise 4.9% year-over-year to $1.32. The company has also beaten consensus EPS estimates in each of the last four quarters.

AAPL shares have gained 27.5% over the last nine months and closed the last session at $221.55.

AAPL’s fundamentals are reflected in its POWR Ratings. It has an overall grade of C, which equates to neutral in our proprietary rating system.

The stock is rated A for quality and B for sentiment. AAPL is ranked 22nd in the B-rated Technology – Hardware industry ranking.

In addition to what has been said above, we have also assessed AAPL for growth, value, stability and momentum. You can find all AAPL ratings here.

Alphabet Inc. (GOOGLE)

GOOGL is a powerhouse behind a spectrum of technology innovations and platforms worldwide. Its segments, including Google services; Google Cloud; and other businesses; address diverse digital needs and aspirations.

Like other major tech companies, GOOGL is investing in artificial intelligence, a strategy that has helped drive demand for cloud services. The company also offers internet services, subscription products, apps and in-app purchases, and licensing and R&D services.

On May 2, 2024, GOOGL and MongoDB, Inc. MDB collaborated on the optimization of Gemini Code Assist and provided improved suggestions for application development and modernization in MDB. MDB is the industry-leading developer data platform used every day by millions of developers and tens of thousands of customers for business-critical applications.

Through this partnership, Gemini Code Assist can help developers get answers and insights about MongoDB code, documentation, and best practices so they can prototype new features faster and accelerate application development.

In the first quarter ended March 31, 2024, GOOGL reported solid growth, with revenue increasing 15.4% year-over-year to $80.54 billion. Operating income increased 46.2% from the year-ago quarter to $25.47 billion, while net income increased to $23.66 billion, up 57.2% from the year-ago quarter. Earnings per share for Class A, B, and C shares reached $1.89, up 61.5% year-over-year.

For the quarter ending June 2024, GOOGL’s revenue is expected to grow 12.7% year-over-year to $84.07 billion, and earnings per share are expected to increase 27.6% year-over-year to $1.84 billion. What’s more, the company has topped consensus revenue and earnings per share estimates in each of the last four quarters, which is impressive.

The company’s shares have gained 55% over the past year, closing at $185.82 in the last trading session.

POWR GOOGL Ratings reflect strong prospects. The stock has an overall grade of B, which equates to a Buy in our proprietary rating system.

GOOGL has a B rating for Sentiment and Quality. It is ranked 12th in the Internet industry with a B rating.

In addition to the POWR Ratings highlighted above, you can access GOOGL Ratings for Growth, Value, Momentum, and Stability here.

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MSFT stock was trading at $460.77 per share on Wednesday afternoon, up $1.49, or +0.32%. MSFT has gained 22.98% year to date, compared with a 16.76% gain for the benchmark S&P 500 during the same period.