5 Top Tech Stocks to Buy in Q4 2021
November 3, 2021
From your morning smartphone alarm to your evening Squid Game binge – and everything in between – technology is a major part of your daily life. So it makes sense to invest in the tech companies that will continue to shape your world. With so many tech stocks on the market, it’s tough to know what to buy. Investing in the technology sector can be unpredictable and even dangerous. To help you get started, we’ve identified the best tech stocks to buy right now as 2021 winds down to a close.
Unless you’ve been hiding under a rock, you’ve certainly heard of Tesla (TSLA) and its celebrity CEO, Elon Musk.
Tesla is first and foremost an electric vehicle (EV) company. Its lineup of sedans and SUVs run entirely on batteries that Tesla also produces. In addition, Tesla also makes home energy storage systems, solar panels, and solar roof tiles.
Tesla’s been on a real roll lately. For two straight quarters, the company’s net income has been higher than $1 billion – as much as 10 times last year’s numbers. That’s despite an ongoing semiconductor chip shortage that has left other automakers struggling.
And the number of Tesla vehicles rolling out of the factory and onto the road is growing exponentially. Last year, the EV maker delivered only 365,000 vehicles. This year, Tesla has already delivered more than 600,000 units – and we still have two months to go!
Not only have the company’s sales and revenue improved, but Tesla has also become smarter. In recent quarters, Tesla has improved its margins and streamlined its operations. Tesla is also planning two big cost-saving moves:
- Moving headquarters from Silicon Valley to the Austin, Texas, area
- Changing its battery chemistry in standard-range cars
Here’s one note of caution about Tesla’s stock price history: The company and its CEO have been so buzzworthy over the years that Tesla’s stock has been overvalued in the past.
Is Tesla stock a good buy now?
We think so. Tesla currently has nearly 80% of the EV market share here in the U.S. And with the market estimated to grow at a compound annual growth rate (CAGR) of 34% in the next five years, Tesla will continue to be a great growth play.
Asana (ASAN) is an online platform that helps companies manage workflow and improve communication. It’s available as both a desktop and a mobile app. And it has an impressive roster of big-name clients, including Amazon (AMZN). Last year, the global coronavirus pandemic turned millions of employees into remote workers. So companies started relying more on software like Asana to stay connected.
Now that life is slowly returning to normal – and workers are going back to the office – many apps that made remote work easy will see declining revenue.
That’s not the case with Asana. Although its app is a must-have for offsite teams, its services benefit onsite employees just as well. In fact, we see plenty of growth in Asana’s future.
For the most recent quarter, Asana’s revenue was up 72% year over year. And the number of clients that pay more than $50,000 per year for the software more than doubled.
The company is rolling out several new services and features that will help it continue to grow, too. Recently, it unveiled Enterprise Work Graph, a suite of features designed to help businesses organize goal-oriented teams, manage workflow, and improve efficiency.
Asana also announced that it would partner with data analytics company Splunk (SPLK) for new integration features. These will make the company’s services even more attractive to large organizations.
Asana stock has been on the rise. But we think it’s still a great addition to your tech stock portfolio. Remote and in-office teams are clamoring for solutions to make their workflows easier and better. And Asana has become the go-to in this field.
HubSpot (HUBS) may have started out as a marketing company for small businesses, but it has grown into much more than that.
The company was founded on the principle of “inbound” marketing – a strategy that focuses on engaging consumers with blog posts and social media shares, rather than hitting them over the head with annoying banner ads. It’s all about building brand awareness.
This strategy has been a real winner, and HubSpot has been at the forefront of the online advertising revolution. Along the way, it has shifted from a client base of small businesses and solopreneurs to big-name enterprises.
HubSpot has also expanded its products. It now offers a full suite of sales, marketing, content management, service support, and other operations tools.
At its most recent Inbound 2021 conference, the company unveiled HubSpot Payments, a proprietary digital payments system that will integrate directly into the platform. This will allow companies to take payments from customers without using a third party – keeping all aspects of a transaction, from marketing to fulfillment, within the HubSpot ecosystem.
In its most recent quarter, HubSpot saw subscription revenue grow by 53%. And its number of customers grew by more than 40% year over year, to more than 121,000.
In 2020, HubSpot posted $883 million in revenue. But the company states its total addressable market is as large as $87 billion. That means HubSpot is currently serving less than 1% of its potential market – leaving a lot of room for growth.
Given all this opportunity – and the fact that HubSpot continues to innovate and improve – we think right now is a great time to scoop up shares of HubSpot stock.
4. Teladoc Health
Chances are, in the past year, you didn’t feel good. And whether you were suffering from COVID symptoms or had a bad case of poison ivy, the last thing you wanted to do was walk into a doctor’s office.
Instead, you turned on your computer and had a telehealth visit.
The leading telehealth provider is Teladoc Health (TDOC). And as you can imagine, it had a banner year in 2020. Revenue soared – and its stock did too. Shares increased by nearly 140% last year.
This year, some investors are worried Teladoc’s services won’t be in demand once the pandemic is over. Those concerns have helped to bring Teladoc stock down by roughly 30%.
But we don’t think this is the end of the Teladoc story. In fact, lower shares of the company equal more opportunity to get in at a good price.
Case in point: Teladoc’s annual revenue was on the rise even before the pandemic began.
And in the second quarter of 2021 – when COVID concerns were tapering off and folks were returning to work – Teladoc actually saw a nearly 110% increase in revenue and a nearly 30% increase in visits.
That’s because going to the doctor’s office is inconvenient and unpleasant. During the COVID pandemic, people discovered there’s a convenient, time-saving alternative.
The global telemedicine market is expected to grow at a roughly 26% CAGR to more than $431 billion by 2030. Teladoc Health is in a great position to profit from this.
Cybersecurity is one of the biggest tech investment themes of 2021 – and with good reason. This year, a series of high-profile ransomware attacks have left many people and companies feeling vulnerable and concerned about their online security. That’s not to mention the millions of dollars organizations have spent on paying off the bad guys.
Cloudflare (NET) is a website security solution that uses cloud technology. Its services help secure a variety of online platforms, including software-as-a-service apps and smart devices.
Cloudflare stock has benefited from the popularity of cybersecurity. It’s been up by more than 120% since the beginning of 2021.
The company keeps on growing, too. For its second quarter, Cloudflare’s revenue grew 53% year over year.
Cloudflare uses technology called edge computing, which it defines as “running fewer processes in the cloud and moving those processes to local places, such as on a user’s computer, a device, or an edge server.”
What this means is that companies can use Cloudflare products without having to install new hardware. That’s convenient – and certainly appealing to big businesses. Currently, about 20% of Fortune 1000 companies rely on Cloudflare to block an average of 87 billion cyber threats per day.
Because Cloudflare stock has been on the rise lately, use caution. Wait for pullbacks in share prices before going in and grabbing some for your own portfolio.