Encountering fluctuations is the norm in stock market investment, and the best stocks to invest in are not always easy to predict. Established companies failing and new ones shocking the market are commonplace. As we’ve entered a new year, knowing what companies will revel in a bull market and what will suffer in a bear market can give your investment strategies a head start.
The following list contains the top 10 tech stocks that are expected to reap you some benefits in 2015.
Microsoft Corporation (NASDAQ:MSFT)
2014 was a good year to the investors of Microsoft (NASDAQ:MSFT), thanks to its almost 30% year-to-date. The arrival of new CEO, Satya Nadella, has triggered momentum to the company’s fascinating growth in cloud-related solutions. To add to this PC upgrades will drive Microsoft stock in 2015. The company has also been making strategic acquisitions like the Acompli acquisition which will help improve Microsost's Office offering and bring long term value. Seeing such positives along with along with solid earnings in latest quarter, it is no surprise investors are excited about the company.
Two other factors that are worth noting are the company’s 2.56% dividend yield and quarterly payout hike, which hold Microsoft’s position strongly in the stock market. (See: Microsoft stock analysis video)
Cisco Systems, Inc. (NASDAQ:CSCO)
This American MNC, headquartered in California, is a designer, manufacturer, and seller of networking hardware. The company’s CEO has made plans to focus more on growing markets like cloud computing and the Internet of Things.
Cisco (NASDAQ:CSCO) had a fantastic run last year, especially in the last quarter. A staggering growth of over 30% in server sales in the third quarter of 2014 and successful implementation of the Smart+Connected City solution in various parts of the world have drawn a considerable amount of attention from investors. Cisco’s futuristic approach has broadened its horizon and made it a valuable long-term investment option. (See: Cisco stock analysis video)
Micron Technology, Inc. (NASDAQ:MU)
One of the few companies to manufacture and sell semiconductor devices worldwide, Micron (NASDAQ:MU) is a strong contender to add to your investment portfolio in 2015. Last year’s numbers alone speak volumes about the potential of the company: $16.4 billion revenue, more than $3 billion net income, and $2.6 billion free cash flow.
Despite its increasing trend, the company’s stock poses no evident thread to decline says experts. Some say that the immense success of DRAM—one of the company’s main products—can lead to overproduction and decrease in value. But the point to be considered is there are only three major companies, including Micron, that manufacture the product. So any fears of overproduction can be forgotten because of the lack of major competitors in the industry. (See: Micron stock valuation)
Pandora Media, Inc. (NYSE:P)
With fierce competition in music-streaming business, Pandora (NYSE:P) remains the leader when it comes to internet radio. Its swift growth in just two years is worth noting. It has an impressive penetration rate of 70%. Wall Street experts are expecting the increased use of Pandora radio, which ultimately will reflect on its share prices as well. Though competition is increasing from others, what with the upcoming Spotify IPO, the company is taking steps to remain relevant like its latest focus on automobile which could offset the threat posed by Apple and Beats. (See: Pandora stock valuation)
Hewlett-Packard Company (NYSE:HPQ)
Founded in the year 1939, Hewlett-Packard (NYSE:HPQ) or HP, as it is commonly called, is an American MNC that provides services, hardware, and software to consumers, enterprises, and government. The company’s total revenue for the last year was $111.454 billion.
HP has learnt from its past mistakes and taking steps to still remain relevant. Under the new leadership of Meg Whitman, the company has seen a prominent improvement. Her plans to use free cash flow to lower existing debt, continue with the dividend payout policy, and repurchase new shares have brought a promising start to the company in 2015. (See: Pandora stock analysis)
SanDisk Corporation (NASDAQ:SNDK)
Anyone who has spent considerable time in the share market will know the value of plummeted stocks. They are an asset when it comes to long-term investments, as hitting a low point is almost always followed by a rise. SanDisk (NASDAQ:SNDK) is in such a position now.
Starting from early 2013 to the mid of 2014, stock of SanDisk had a good run with a 63% rise. But, things weren't all easy after that for the company. The stock prices have fallen from $108.77 to $79.04 in 2014, marking a significant downfall. But this very downfall is the reason why SanDisk can be the best stock to invest in 2015.(See: Sandisk stock analysis)
Intel Corporation (NASDAQ:INTC)
Intel (NASDAQ:INTC) broke its bad spell of a long fruitless run with the 45% increase in share price in 2014, allowing its investors to breathe freely. While many reckoned Intel’s worth purely based on its chip market, the trend has finally changed.
The company’s involvement in data centers to manage data through cloud technologies, and the Internet of Things have propelled its per-share earnings to 20% in the last quarter. These healthy past trends of the company have made it a substantial contender to invest in 2015. (See: Intel stock analysis)
Cognizant Technology Solutions (NASDAQ:CTSH)
Earning twice more than the average industry standards for the past decade, Cognizant (NASDAQ:CTSH) is a force to reckon with. The company provides consulting, information technology, and business process outsourcing services.
It may be impractical to expect the company sustain its twice-more-than-average revenue for the next decade, but what is practical is that it can still be above average. This is a good news for all long-term investors. (See: Cognizant stock valuation)
Silicon Image, Inc. (NASDAQ:SIMG)
Silicon Image (NASDAQ:SIMG) provides semiconductors for consumer electronics, mobile phones, and personal computers. The company also produces wired and wireless connectivity products for HD content.
The company’s shares have made a giant 52% leap since October 2013. It has recently announced a split of its business into 3 segments, which is worth noting for investors. But the important factor that can attract investors is the company’s announcement of $7 million investment in its subsidiary.
Cypress Semiconductor Corporation (NASDAQ:CY)
Cypress (NASDAQ:CY) is yet another designer and manufacturer of semiconductor devices, based on Silicon Valley. The company is one of the main competitors of Integrated Device Technology, Microchip Technology, and Samsung Electronics. It is especially known for Bluetooth and touchscreen technology.
Cypress’ merger with Spansion has motivated investors to expect an increase in the stock value of both the companies, as the combination of products from the two companies can be powerful in the market. (See: Cypress Semi stock valuation)