3 Top Tech Stocks to Buy in 2019
The Motley Fool
Published May 14, 2019 15:18
Updated May 14, 2019 15:35
Tech stocks have been leading the market for several years. Behemoths like Facebook (NASDAQ:FB), Inc. and Microsoft Corporation (NASDAQ:MSFT) have gotten most of the attention, but plenty of smaller stocks have just as much promise.
Several overlooked tech stocks are shaping up to have transformational years. Others are positioning themselves to take advantage of mega-trends that will persist for several decades.
If you’re looking for the top tech stocks to buy in 2019, here are three ideal options.
Shopify Inc (TSX:SHOP)(NYSE:SHOP) Shopify should top the list of any list of promising tech stocks.
After debuting at $35 in 2015, shares have exploded higher by nearly 1,000%. Now trading at a lofty $335 per share at writing, Shopify stock isn’t cheap, but it should have plenty of runway for growth.
As I wrote on May 2, “Shopify stock can seemingly do no wrong.” That’s because it’s capitalizing on one of the biggest trends this century: e-commerce.
After years of refining its e-commerce platform, Shopify has catapulted Direct-to-Consumer (DTC) retail into the spotlight. The company easily allows anyone in the world to become an internet entrepreneur overnight.
The company has revenues of roughly $1 billion, but this market opportunity could be worth $30 billion or more. Shares are more expensive than the other stocks on this list, but it’s for good reason.
BlackBerry Ltd (TSX:BB)(NASDAQ:BB) BlackBerry may seem like an odd candidate for this list, but it’s important to note that the BlackBerry you’re thinking of likely doesn’t reflect the BlackBerry of today.
In the past, BlackBerry designed and manufactured smartphones. At one point, it had a market share of nearly 20%. After the peak, its market share fell to just 1%. Rising costs and mounting losses forced it to rethink its business strategy.
After exiting the smartphone market entirely, the company now focuses on software and services, a higher margin field with greater recurring revenues, not to mention greater chances of hyper-growth.
Today, BlackBerry operates in promising areas like cybersecurity, self-driving vehicles, and healthcare analytics.
With a $6.2 billion market cap, the market clearly doesn’t expect the company to be a big player in any of its focus areas. Looking at its growing list of impressive assets, however, BlackBerry could become the next tech juggernaut.
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Magna International Inc. (TSX:MG)(NYSE:MGA) Magna International isn’t always considered a tech stock, but it should be.
Today, the company largely helps automakers manufacture their vehicles. The company designs and implements a wide variety of automobile components, from seats to software. The future of Magna International, however, will rely on autonomous vehicles.
In 2019 and beyond, betting on Magna International stock is akin to a bet on the rise of self-driving cars.
Already, the company’s components can be found in half of all vehicles on the road today, which gives Magna International a huge advantage in supplying the future of vehicles.
Looking at recent deals, the company is getting ready for this multi-decade growth opportunity. For example, it partnered with BMW to produce LiDAR systems and is working with LYFT Inc to design self-driving features.
Magna International may not get the lofty valuation that tech stocks get, but that should change over the coming years.
Teresa Kersten, an employee of LinkedIn (NYSE:LNKD), a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool's board of directors. Tom Gardner owns shares of Facebook and Shopify. The Motley Fool owns shares of BlackBerry, Facebook, Microsoft, Shopify, and Shopify.Fool contributor Ryan Vanzo has no position in any stocks mentioned. Shopify, BlackBerry and Magna International are recommendations of Stock Advisor Canada.
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019
This Article Was First Published on The Motley Fool
Written By: The Motley Fool
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