Strategists View on Technology Stocks
Stock market strategists recommend the strongest technology stocks among the best opportunities to buy this year. Two major corrections among the technology stock sector this year keep some investors away from investing in the young start-up technology stocks. Many analysts and investors are expecting another major correction before year-end.
Analysts Agree on Best Tech Stock Investments
Most stock market analysts agree that technology stocks will prove to be one of the most dynamic leadership groups in the market for years to come. The hottest areas are telecommunications, semiconductors and the Internet. Although some people think the Internet is a fad, many analysts think it marks the fundamental long-term shift in the way business and communication are handled.
An increase in Internet commerce is leading to a greater demand for technology-infrastructure companies to deliver goods and services to end-users. Some analysts remain cautious about Internet stocks due to lack of earnings. Telecommunications and semiconductors seem to be on the lists of benefactors from growing demand and much less risk is involved than with Internet stocks.
Here is a sampling of some of the technology stocks recommended by several analysts and the reason why they are making the suggestions.
· Cisco Systems, Inc.- NASDAQ(CSCO) This is the top maker of networking equipment and looks sure to remain the leading supplier.
· Intel Corp.- NASDAQ(INTC) This is the leading supplier of semiconductors who seems to eat the competition alive with aggressive pricing and acquisitions.
· Qualcomm Inc.- NASDAQ(QCOM) This corporation has a dominant global presence in wireless phones and projects annual earnings growth of 30% to 35%.
· AT&T Corp. NYSE (T) This industry giant has transformed itself by expanding into cable.
· CommScope,Inc.- NYSE(CTV) Major supplier of high-speed, high bandwidth cables for video, data and other telecommunications applications.
Other stocks making the lists include: America Online, Inc.-NYSE(AOL); Lucent Technologies Inc.-NYSE(LU); MCI WorldComm, Inc.-NASDAQ(WCOM) and Sun Microsystems,Inc.-NASDAQ(SUNW).