Should Investors Be Watching These Top Tech Stocks This Week?
February 09, 2021 at 20:44 PM EST
Looking For The Best Tech Stocks To Watch Right Now? 4 Names To Know
Unsurprisingly, tech stocks have been and continue to bring investors huge gains. Across the stock market, no other industry can boast the resilience and adaptiveness of the tech sector. This is because of the inherent function of technology in general. From the cars we drive to the devices we use, technology is heavily and vitally involved. As a result, I’d say the tech industry could continue to see steady growth for the foreseeable future.
If that wasn’t enough, tech is constantly evolving and improving as a whole. Take the growing adoption of 5G technology for example. At face value, you would think it mainly affects internet and telecom companies, in regard to transmission speeds. However, as we’ve seen before, one innovation can lead to massive industry-wide ripples. Now, top tech stocks like Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA) are reaping the benefits of this emerging tech. Both have bolstered their existing consumer tech to best employ 5G, and investors have been heavily rewarded for it.
In the larger scheme of things, this keeps tech companies on their toes and competitive. Admittedly, that is where investors can see opportunity as well. As such, here are some of the top tech stocks worth adding to your radar right now.Best Tech Stocks To Watch This Month
Starting us off is the educational tech company, Chegg. The California-based company provides textbook rental, online tutoring, and other related student services. Seeing as countless students transitioned to online learning in the past year, Chegg services could be looking at a higher demand. Notably, CHGG stock has surged by over 290% since the pandemic first hit in March. The stock closed Tuesday’s trading days at $102.35 a share. Chegg is in focus today after posting solid figures in its 2020 full-year report yesterday after market close.
Phenomenally, Chegg saw a 57% rise in total annual revenue year-over-year. Moreover, it also ended the fiscal year with a record 6.6 million subscribers, a 67% year-over-year jump. For the quarter, the company saw its Chegg services revenue rise by over 64% compared to the same quarter last year. It seems that demand for Chegg’s services is high among student populations stuck at home. No doubt, online learning is a relatively new medium that many students struggle with. To investors’ delight, Chegg’s services are available to cater to such students.
Moving forward, the company cites accelerated hybrid learning trends as a key driver for growth in 2021. Additionally, Chegg has confidently raised its 2021 annual revenue guidance to a 22% year-over-year increase at the top line. Given all of this, will you be adding CHGG stock to your watchlist?
ON Semiconductor is another top tech company in the limelight right now. It is currently among the top 10 global automotive semiconductor suppliers in terms of sales and revenue. Given the current wave of interest in electric vehicles, ON Semiconductor could see continued demand for its automotive-related offerings. Similarly, ON stock appears to be in demand as well. It is looking at gains of over 15% this month and closed at a record high yesterday. This lines up with its two recent major announcements on the same day.
Firstly, the company announced that it would be collaborating with global tech solutions provider Avnet (NASDAQ: AVT). Both companies will work towards creating a framework for original equipment manufacturers (OEMs). The said framework will help OEMs develop end-to-end Internet of Things (IoT) devices more efficiently. In essence, the duo is removing as much complexity from the IoT development process as possible. Furthermore, ON Semiconductor also announced the launch of its new smart camera, RSL10.
Interestingly, the product integrates cloud-based artificial intelligence and advanced image recognition software. Through this, it can automatically send images to the cloud for analysis when it picks up certain features. Ideally, it would be applied in manufacturing lines to pick out defective products. With ON Semiconductor kicking into high gear, could ON stock follow suit? I’ll let you decide.Zedge Inc.
Next, we will be looking at content delivery platform company, Zedge. For the most part, the company’s platform enables consumers to personalize their mobile devices. It offers a wide array of ringtones, wallpapers, and widgets. How is this relevant to the current times, you might be asking? Well, according to Zedge, people have been using their spare time at home to personalize their smartphones, a lot. In fact, ZDGE stock leaped by over 29% as the company unveiled its 2020 app and user highlights yesterday. The stock has risen by over 20% during Tuesday’s trading session, closing the day at $14.00 a share.
In the announcement, Zedge mentioned that its 141 million users downloaded roughly 2.1 billion items throughout the year. For the year ahead, the company appears to have big plans as well. CEO Jonathan Reich stated that the company is looking to introduce new features, improve search capabilities, and overhaul user accounts. That’s not all, he also mentioned that the company is “becoming even more relevant to iOS users” by adding iOS 14-focused features. For one thing, there has been a massive adoption of Apple’s iPhone product line over the last few years.
You only need to look at Apple’s recent $111.4 billion quarterly revenue to see how prominent iOS smartphones are. Accordingly, this is a smart move by Zedge as it is appealing to a very large group of smartphone users. Could this make ZDGE stock worth watching? You tell me.Monolithic Power Systems Inc.
Last but not least is Monolithic. The Washington-based power circuit provider operates through more than 15 locations throughout the globe. Its products play crucial roles in the cloud computing, telecom, and automotive industries. With such a crucial role across several massive industries, it is no wonder that MPWR stock has doubled in the past year. On top of that, MPWR stock is making waves on the stock market today as well on account of a major announcement last night.
S&P Dow Jones Indices revealed that Monolithic will become a constituent of the S&P 500. This will take effect starting from the opening bell on February 12. Understandably, this news follows its stellar fiscal year figures posted last week. In its full-year 2020 financial report, the company saw annual revenue rise by 34.5% year-over-year. Overall, this added up to a cool $844.5 million in revenue for the year, a record high for the company.
Monolithic cited consistent execution of its strategies and gaining recognition from top-tier companies as driving factors for this growth. CFO Bernie Blegen said, “As we see more high‐quality growth opportunities ahead of us, we continue to successfully invest in our infrastructure and capabilities that support that growth.” All things considered, will you be watching MPWR stock?