The bull market continues to rage on, and technology stocks remain some of the strongest stocks in the overall market. Big tech has been driving the bull market in recent years, and that continues to be the case with the top tech stocks all trading near record highs as the overall market trades near record levels.
Technology has been a driving force of the market for years, and as technology continues to grow in importance that trend is unlikely to change in the near future. Technology has become so ingrained in our every day lives that companies like Apple (AAPL) and Facebook (FB) will remain top stocks for years down the road.
With the broader market at record highs, a lot of investors are left scratching their heads wondering where to invest new money, and technology stocks seem like a logical choice. Their importance in the world is indisputable, and their reach into daily lives is only growing stronger with each passing here.
Here are a few big tech stocks that are still killing it in the current market.
Apple (AAPL)
Investors worried that slowing iPhone sales would be the death of tech titan Apple (AAPL). A few years ago this may have been the case, but Apple's ability to focus on its services division has created a new revenue stream that has pushed earnings higher and should continue to drive the stock to new highs. AAPL stock has appreciated 66% in 2019 alone. Despite the stock's impressive gains AAPL remains reasonably priced at 17 times future earnings, which are expected to climb at an annual rate of 9.9% over the next five years. While a lot of corporate American companies are expected to see slowing earnings growth Apple's future estimates are actually stronger than the 8.4% per annum profit growth the company has enjoyed over the last five years. The company remains a solid long-term holding and as the company grows its Apple TV+ video streaming service it is likely to become another major revenue stream for the company. AAPL trades at $262.25 with an average price target of $258.46.
Alphabet (GOOGL)
Alphabet (GOOGL) is the parent company of search engine giant Google. The company which was started in a garage in 1998 has become the world's largest search portal and has a market cap of $910 billion. The company's two founders recently announced there were stepping away from the day-to-day action and Google CEO Sundar Pichai will be taking over control. Pichai has been with the company for 15 years, and his advancement was a natural pick. GOOGL shares rallied on the news, and the stock is currently trading just shy of its all-time high after rising 26% on the year. GOOGL is the undisputed king of internet search and the company continues to grow at a strong pace. Profits are up 14.9% per annum over the last five years and analysts expect to see earnings continue to rise at an annual rate of 10.1% over the next five years. The stock is currently trading at 24 times future earnings. GOOGL currently trades at $1,319.44 with an average price target of $1,416.41.
Facebook (FB)
Despite its user privacy woes, social media leader Facebook (FB) remains one of the strongest stocks in the overall market with shares up 52% on the year. Facebook is the leader in social media and the company continues to grow at a blistering pace. Facebook has grown earnings at an annual rate of 42% over the last five years, and looking ahead analysts expect to see profits rise at 21% per annum over the next five years. FB has been strong in 2019 and the stock is currently trending toward its all-time high set in mid-2018. Facebook's large user base puts it in a rare position to be able to challenge Google in search advertising, with 2.45 billion monthly active users. In late October the company posted big beats on both the top and bottom line and earnings were up to $2.12 from $1.76 during the same period last year. The stock trades at 21 times future earnings at $199.18 with an average price target of $233.06.
Microsoft (MSFT)
Microsoft (MSFT) is a mature technology company, but its ability to carve out a leadership role in the fast-growing cloud computing space has resulted in strong earnings growth and pushed MSFT stock to record highs. Microsoft has grown earnings at an annual rate of 18% over the last five years, and analysts forecast profits to rise 14.5% per annum over the next five years. The stock has appreciated 47% on the year and shares are currently trading at 24 times future earnings. MSFT is trading at $149.51 with an average price target of $158.57.
