Top Technology Stocks For December

Tech stocks have been the biggest winners of the COVID world, surging ever since markets bottomed in March, and leading the recovery. However, we have potentially reached a crossroads. The Nasdaq sharply sold off during the initial vaccine rally after Pfizer and BioNTech became the first vaccine producers to reveal strong efficacy against the coronavirus. However, since then, the Nasdaq has sharply recovered and just yesterday reached an all-time closing high. Be that as it may, cyclical stocks, value stocks, and small-cap stocks significantly outperformed tech stocks and “stay-at-home” stocks last month. There certainly are unanswered questions for tech stocks. What will happen once COVID eventually goes away for good? Do tech stocks have more upside potential despite their valuations? COVID numbers are still surging to record highs with further shutdowns imminent. However could this be a good thing for tech stocks? Sentiment is certainly mixed right now, and there will certainly be a tug of war between good and bad news for the foreseeable future. Despite the uncertainty, our Artificial Intelligence (“AI”) algorithms at Q.ai have identified intriguing tech stocks rated as Top Buys. 

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Activision Blizzard (ATVI)

Activision Blizzard is our first Top Buy for the month. The gaming industry has been booming the last several years, and with more people at home due to COVID, appears to be gaining even more steam. Best known for its Call of Duty and Guitar Hero video game franchises, our AI systems have rated Activision D in Technicals, B in Growth, A in Momentum Volatility, and B in Quality Value. Activision closed up 0.57% to $79.93 on volume of 5,795,761 vs its 10-day price average of $77.06 and its 22-day price average of $77.09, and is up 36.28% for the year. Revenue grew by 18.05% in the last fiscal year and grew by 9.16% over the last three fiscal years, Operating Income grew by 52.81% in the last fiscal year and grew by 101.28% over the last three fiscal years, and EPS grew by 46.11% in the last fiscal year and grew by 691.43% over the last three fiscal years. Revenue was $6489.0M in the last fiscal year compared to $7017.0M three years ago, Operating Income was $1744.0M in the last fiscal year compared to $1324.0M three years ago, EPS was $1.95 in the last fiscal year compared to $0.36 three years ago, and ROE was 12.42% in the last year compared to 2.94% three years ago. The stock is also trading with a Forward 12M P/E of 24.0.

Take-Two Interactive (TTWO)

Our second Top Buy for the month is Take-Two Interactive. Take-Two is another gaming giant with even more upside potential as people continue staying at home. Take-Two Interactive is best known for its GTA, NBA 2K, and Red Dead franchises, and is also at the forefront of competitive esports as it owns 50% of the NBA 2K league. Our AI systems rated Take-Two Interactive B in Technicals, B in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed down 0.25% to $180.06 on volume of 1,151,453 vs its 10-day price average of $171.14 and its 22-day price average of $165.8, and is up 47.49% for the year. Revenue grew by 8.88% in the last fiscal year and grew by 87.58% over the last three fiscal years, Operating Income grew by 21.79% in the last fiscal year and grew by 242.22% over the last three fiscal years, and EPS grew by 16.49% in the last fiscal year and grew by 168.21% over the last three fiscal years. Revenue was $3088.97M in the last fiscal year compared to $1792.89M three years ago, Operating Income was $425.35M in the last fiscal year compared to $151.38M three years ago, EPS was $3.54 in the last fiscal year compared to $1.54 three years ago, and ROE was 17.66% in the last year compared to 13.92% three years ago. The stock is also trading with a Forward 12M P/E of 43.76.

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Facebook (FB)

Facebook is our next Top Buy top tech stock to watch. While they have had their share of controversies, and have been under increasing scrutiny due to the election and antitrust issues, our AI systems are bullish on the social media giant. Our AI systems rated Facebook D in Technicals, B in Growth, A in Low Volatility Momentum, and B in Quality Value. The stock closed up 3.46% to $286.55 on volume of 20,777,910 vs its 10-day price average of $275.19 and its 22-day price average of $276.17, and is up 36.6% for the year. Revenue grew by 11.71% in the last fiscal year and grew by 94.27% over the last three fiscal years, while Operating Income grew by 17.58% over the last three fiscal years, and EPS grew by 36.52% in the last fiscal year and grew by 62.85% over the last three fiscal years. Revenue was $70697.0M in the last fiscal year compared to $40653.0M three years ago, Operating Income was $23986.0M in the last fiscal year compared to $20203.0M three years ago, EPS was $6.43 in the last fiscal year compared to $5.39 three years ago, and ROE was 19.96% in the last year compared to 23.86% three years ago. Forward 12M Revenue is expected to grow by 18.8% over the next 12 months, and the stock is trading with a Forward 12M P/E of 28.98.

Microsoft Corp (MSFT)

Microsoft is our next Top Buy. Long a staple in the tech industry, the company is one the largest providers of computer software, consumer electronics, personal computers, and related services in the world. The tech giant has been reborn and continues to innovate, grow, and adapt to any changes in the market. With Black Friday and Cyber Monday deals on the horizon, Microsoft could also have a very big month ahead. Our AI systems rated Microsoft D in Technicals, B in Growth, A in Low Volatility Momentum, and C in Quality Value. The stock closed up 1.0% to $216.21 on volume of 30,931,320 vs its 10-day price average of $213.17 and its 22-day price average of $213.7, and is up 34.61% for the year. Revenue grew by 2.87% in the last fiscal year and grew by 33.3% over the last three fiscal years, Operating Income grew by 6.02% in the last fiscal year and grew by 60.16% over the last three fiscal years, and EPS grew by 7.62% in the last fiscal year and grew by 191.03% over the last three fiscal years. Revenue was $143015.0M in the last fiscal year compared to $110360.0M three years ago, Operating Income was $52959.0M in the last fiscal year compared to $35058.0M three years ago, EPS was $5.76 in the last fiscal year compared to $2.13 three years ago, and ROE was 40.14% in the last year compared to 19.45% three years ago. Forward 12M Revenue is expected to grow by 2.53% over the next 12 months, and the stock is trading with a Forward 12M P/E of 32.06.

Paypal Holdings Inc (PYPL)

Paypal is our fifth Top Buy this month. Paypal has revolutionized finance and continues to be a FinTech innovator as a worldwide online payments system. Paypal has built itself into a platform that supports online money transfers from anywhere in the world, and also operates as a payment processor for online vendors, auction sites, and many other commercial users. Our AI systems rated Paypal B in Technicals, B in Growth, B in Low Volatility Momentum, and C in Quality Value. The stock closed up 1.13% to $216.54 on volume of 10,103,481 vs its 10-day price average of $202.93 and its 22-day price average of $196.12, and is up 95.52% for the year. Revenue grew by 14.22% in the last fiscal year and grew by 55.03% over the last three fiscal years, Operating Income grew by 15.16% in the last fiscal year and grew by 46.24% over the last three fiscal years, and EPS grew by 28.0% in the last fiscal year and grew by 80.25% over the last three fiscal years. Revenue was $17772.0M in the last fiscal year compared to $13094.0M three years ago, Operating Income was $2790.0M in the last fiscal year compared to $2197.0M three years ago, EPS was $2.07 in the last fiscal year compared to $1.47 three years ago, and ROE was 15.22% in the last year compared to 11.69% three years ago. Forward 12M Revenue is expected to grow by 13.7% over the next 12 months, and the stock is trading with a Forward 12M P/E of 51.18.

Verizon Communications Inc (VZ)

Verizon Communications is our next Top Buy. Verizon is one of the largest telecom companies in the US, and after AT&T, is the second largest telecom company in terms of revenue. Verizon has been in the news a lot this week due to its attractive Black Friday deals. Our AI systems rated Verizon A in Technicals, C in Growth, B in Low Volatility Momentum, and A in Quality Value. The stock closed up 0.28% to $60.58 on volume of 14,283,160 vs its 10-day price average of $60.42 and its 22-day price average of $59.78, and is down 0.77% for the year. Revenue grew by 1.86% over the last three fiscal years, while Operating Income grew by 7.77% over the last three fiscal years. Revenue was $131868.0M in the last fiscal year compared to $126034.0M three years ago, Operating Income was $31521.0M in the last fiscal year compared to $28673.0M three years ago, EPS was $4.65 in the last fiscal year compared to $7.36 three years ago, and ROE was 33.67% in the last year compared to 88.91% three years ago. Forward 12M Revenue is expected to grow by 3.31% over the next 12 months, and the stock is trading with a Forward 12M P/E of 12.21.

Salesforce.com Inc (CRM)

Salesforce is our next Top Buy for the month. Salesforce is a cloud computing company that provides customer relationship management services for businesses. It also sells a complementary suite of enterprise management applications focused on customer service, marketing automation, analytics, and application development. Although Salesforce’s stock price has lagged as of late due to news of its acquisition of Slack, in the long term, this should make the company an even bigger workplace juggernaut than it already is. Our AI systems rated Salesforce C in Technicals, B in Growth, A in Low Volatility Momentum, and C in Quality Value. The stock closed down 1.81% to $241.35 on volume of 19,349,100 vs its 10-day price average of $253.61 and its 22-day price average of $250.86, and is up 44.53% for the year. Revenue grew by 18.65% in the last fiscal year and grew by 92.47% over the last three fiscal years, while EPS grew by 2472.25% in the last fiscal year, and grew by 687.42% over the last three fiscal years. Revenue was $17098.0M in the last fiscal year compared to $10540.0M three years ago, Operating Income was $503.0M in the last fiscal year compared to $454.0M three years ago, EPS was $0.15 in the last fiscal year compared to $0.49 three years ago, and ROE was 0.51% in the last year compared to 4.03% three years ago. Forward 12M Revenue is expected to grow by 13.96% over the next 12 months, and the stock is trading with a Forward 12M P/E of 71.71.

Qualcomm Inc (QCOM)

Qualcomm is our next Top Buy tech stock for the month. Qualcomm is a major player in technology and creates intellectual property, semiconductors, software, and services related to wireless technology. Our AI systems rated Qualcomm F in Technicals, A in Growth, A in Low Volatility Momentum, and B in Quality Value. The stock closed up 2.78% to $151.26 on volume of 11,910,500 vs its 10-day price average of $146.54 and its 22-day price average of $142.06, and is up 70.55% for the year. Revenue was $23531.0M in the last fiscal year compared to $22611.0M three years ago, Operating Income was $6227.0M in the last fiscal year compared to $3774.0M three years ago, EPS was $4.52 in the last fiscal year compared to $(3.39) three years ago, and ROE was 94.63% in the last year compared to (31.46%) three years ago. The stock is trading with a Forward 12M P/E of 21.51.

Comcast Corp (CMCSA)

Comcast is next on our list as a Top Buy tech stock. Comcast is the second-largest broadcasting and cable television company in the world by revenue and the largest pay-TV company, the largest cable TV company and largest home Internet service provider in the United States. It is also the third-largest home telephone service provider in the U.S., and has been the parent company of NBCUniversal since 2011. Our AI systems rated Comcast A in Technicals, D in Growth, C in Low Volatility Momentum, and B in Quality Value. The stock closed up 1.55% to $51.02 on volume of 14,369,950 vs its 10-day price average of $50.45 and its 22-day price average of $47.84, and is up 12.45% for the year. Revenue grew by 22.61% over the last three fiscal years, while Operating Income grew by 7.09% over the last three fiscal years. Revenue was $108942.0M in the last fiscal year compared to $85029.0M three years ago, Operating Income was $21125.0M in the last fiscal year compared to $17576.0M three years ago, EPS was $2.83 in the last fiscal year compared to $4.75 three years ago, and ROE was 16.75% in the last year compared to 35.69% three years ago. Forward 12M Revenue is expected to grow by 6.31% over the next 12 months, and the stock is trading with a Forward 12M P/E of 18.96.

Oracle Corp (ORCL)

Long time tech business solutions provider Oracle is our final Top Buy for the month. The company is best known for its database software and technology, cloud engineered systems, and enterprise software products. Our AI systems rated Oracle C in Technicals, B in Growth, A in Low Volatility Momentum, and A in Quality Value. The stock closed up 1.77% to $58.74 on volume of 11,856,020 vs its 10-day price average of $57.08 and its 22-day price average of $56.88, and is up 8.88% for the year. Revenue grew by 0.38% in the last fiscal year, Operating Income grew by 3.22% in the last fiscal year and grew by 5.07% over the last three fiscal years, and EPS grew by 3.25% in the last fiscal year and grew by 274.13% over the last three fiscal years. Revenue was $39068.0M in the last fiscal year compared to $39383.0M three years ago, Operating Income was $14151.0M in the last fiscal year compared to $13901.0M three years ago, EPS was $3.08 in the last fiscal year compared to $0.85 three years ago, and ROE was 57.78% in the last year compared to 7.09% three years ago. Forward 12M Revenue is expected to grow by 0.6% over the next 12 months, and the stock is trading with a Forward 12M P/E of 13.71.

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