7 High-Quality Tech Stocks to Buy on the Dip  | | Luke Lango | The reflation trade is on. The growth trade is dead. At least, that's what Wall Street is saying loud-and-clear in 2021. It's a "return to the basics" rotation. Many of 2020's biggest winners – disruptive technology stocks with tons of long-term growth firepower yet scant or no profits and rich valuations – are getting killed in 2021. Meanwhile, many of last year's biggest losers – old-school stocks with minimal long-term growth firepower but lots of cash flows and cheap valuations – are soaring back to life this year. I have trouble with this rotation, simply because it's so short-sighted in nature. *** Click Here for the Name of 'The Next Amazon' Sure… hypergrowth stocks became overextended after soaring hundreds of percent in 12 months… and cyclicals became far-too-beaten-up in 2020 considering they still have some life left in them… plus, the economy reopening will benefit cyclicals who didn't grow profits last year, more than it will benefit tech companies who managed to keep growing during the pandemic. I get all of that. But let's play this out. The rotation happens. Money shifts from growth to value, from technology to cyclical. Tech valuations compress. Cyclical valuations expand. Cyclical companies benefit from this huge reopening and pent-up demand and drive enormous profit growth from a depressed base. Tech companies experience a slowdown in earnings growth. Then, in six months, all the money has shifted. Cyclical stocks are no longer cheap. Tech stocks are a lot cheaper. All that earnings firepower in cyclical companies has been dried up. And… we go back to normal… which is a world wherein technology continues to take-over every industry of every shape and size. In other words, this "great rotation" is a byproduct of unprecedented reopening dynamics that will not last longer than six months – and by 2022, money will come rushing back into hypergrowth technology companies because they have all the earnings firepower. That's why I think buying bank, energy, retail, and legacy communications stocks here is short-sighted. But I still understand the growth sector meltdown will likely persist – and that's why I have a different game-plan to weather this storm. Double down on profitable tech. The recent growth sector meltdown has not been equal. It has been especially unkind to high-multiple, no-profit tech companies who get all their value from their story and their potential. But it has been much kinder to lower-multiple, profitable tech companies who are more proven. That's why my strategy during this sell-off is to double-down on profitable tech names. I'm talking lower-multiple, bigger-profit tech names like Facebook (FB), which should also benefit from increased ad spending 2021, and Intel (INTC), which should benefit from the global semiconductor chip shortage inflation chip prices and chip seller margins. There's also Adobe (ADBE), Microsoft (MSFT), Amazon (AMZN), eBay (EBAY), and Twitter (TWTR). These are all innovative tech companies. They just have lower multiples and bigger profits and cash flows than other innovative tech companies. And that's why – amid the recent growth sector meltdown – I'd seek haven from the storm in these "higher quality" names. *** Get My No. 1 Hypergrowth Stock Pick for Life-Changing Wealth Eventually, this tide will turn. When it does, other hypergrowth stocks will come storming back, and in a big way. I'm as bullish as ever on transformative technology names like Plug Power (PLUG), Opendoor (OPEN), and Luminar (LAZR). I think those stocks offer 5X-plus return potential from current prices over the next several years. But I also recognize that the near-term rotation headwinds impacting these stocks will not go away anytime soon – and so, in the meantime to preserve capital and even make some money while our hypergrowth stocks are getting crushed, the best course of action is to take defense in the Facebook's and Intel's of the world. Sincerely,  Luke Lango
Editor, Hypergrowth Investing On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article. By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It's how his Daily 10X Report has averaged up to a ridiculous 100% return across all recommendations since launching last May. Click here to see how he does it. Exponential Growth Report Exponential Growth Report is Luke Lango's most exciting, powerful service, where he hunts for future technology juggernauts in the micro- and nano-cap world. These stocks are small enough to fly under Wall Street's radar… and he predicts the profit potential can be staggering as a result. Click here to learn more. Luke’s Hypergrowth Stocks for 2021 7 Hypergrowth Stocks to Buy for 2021 My philosophy is to look for innovative companies within unstoppable megatrends, and to invest in them. This is the only way to find the next Apple… the next Amazon… or the next Netflix. By looking at innovative leaders, I've identified 7 stocks to buy for 2021 and beyond. Get the free report here. 11 EV Stocks to Buy for 2021 Electric vehicles are on the cusp of an enormous next-generation breakthrough. In fact, I believe this disruption will fundamentally change the way the multi-trillion transportation industry works. In my report, you'll find 11 EV stocks that are worth your attention. Get the free report here. More From Luke Tesla's China Problems Are Good News for NIO Stock Follow Luke on Twitter, the Best Place for Real-Time Hypergrowth Updates. Click to Subscribe to Luke's Quick Picks YouTube Series | 
没有评论:
发表评论