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The technology industry has mostly been resilient in the face of the pandemic, rewarding investors with solid returns. This is evidenced by the Technology Select Sector SPDR Fund’s (XLK) 35.7% gains over the past year. The industry has benefited largely from rapid digitization and growing reliance on tech products and solutions for working from home, digital payments, and the digitization of healthcare, to name a few areas. In fact, the increasing use of cloud computing and continuous innovations in AI, machine learning, and IoT are likely to create massive opportunities for the industry in the coming months.
The continuing low-interest-rate environment is anticipated to drive the tech industry’s growth further. Hence, tech stocks Checkpoint Software Technologies Limited (CHKP) and GoPro Inc (GPRO) are well-positioned to capitalize on the current industry momentum and, thus, could be the best picks now. These stocks were recently upgraded from Neutral to Buy in our proprietary POWR Ratings system.
