With earnings season well underway, Wall Street now has its eyes firmly affixed on the 2020 elections.
If early movements are any indication, investors seem to like the apparent outcome, which is pointing to a divided Congress rather than the “Blue Wave” some experts had expected.
Here are five of the best tech stocks to buy for November:
— Facebook (ticker: FB)
— Dell Technologies (DELL)
— Advanced Micro Devices (AMD)
— PayPal Holdings (PYPL)
— Marvell Technologies (MRVL)
One of those Big Tech names that has been under scrutiny from Congress, Facebook shares popped on Nov. 4, as investors breathed a sigh of relief that Capitol Hill would likely be divided. FB stock advanced around 7% in the day’s trading session.
The sheer size of Facebook and its portfolio of apps, which includes Instagram, Messenger and WhatsApp, is what sets it apart from rivals. FB has 3.21 billion monthly active people on its family of applications, up 14% year over year. The average revenue per user (ARPU), the other crucial metric for FB owners to watch, is also on the rise, up 8.7% year over year.
Dell Technologies (DELL)
Named one of the best tech stocks to buy for 2020 by U.S. News & World Report, Dell still takes the cake as one of the most attractive names in tech for November. Still relatively conservatively valued, Dell stock trades for about nine times forward earnings — a much lower multiple than any of the other stocks on this list.
Taking advantage of low interest rates, Dell paid down $3.5 billion in debt last quarter alone, while deferred revenue rose 14% year over year. Dell also saw strong growth in government and education, which rose 16% and 24%, respectively.
Although Dell doubtlessly has less growth potential than other companies on this list, its slow and steady business, which includes PCs, gaming, the cloud and servers, is worth owning for its stability and brand name alone.
Advanced Micro Devices (AMD)
Fresh off announcing one of the biggest tech mergers in the modern era — AMD is set to acquire Xilinx ( XLNX) for $35 billion — AMD has had a phenomenal year. Shares of the chipmaker are up around 80% year to date, giving the Santa Clara, California-based semiconductor company the prime opportunity to use its stock as tender to make a massive, opportunistic decision in a consolidating industry.
This is a company firing on all cylinders. Last quarter, AMD reported record revenue of $2.8 billion, up 56% year over year.
It was the fourth straight quarter of at least 25% year-over-year revenue growth, with its next-generation processors for PC, gaming and data center end markets driving the sort of demand most companies would kill for.
PayPal Holdings (PYPL)
The election is in the rearview mirror, but the holiday shopping season is only just beginning. And that’s good news for online payments powerhouse PayPal, whose eponymous service, along with Venmo, online coupon app Honey, and a new cryptocurrency wallet feature give PYPL stock more room to grow in today’s increasingly digital era.
PayPal is an out-and-out growth stock, and investors pay for that growth accordingly. Currently, PYPL trades for about 73 times earnings and more than 40 times forward earnings. That said, the company’s recent third-quarter earnings showed exactly why those rich valuations are worthwhile.
PayPal reported its best quarter for total payment volume (TPV) and revenue growth of all time; TPV jumped 38% to $247 billion and revenue jumped 25% to $5.46 billion. Due to the economies of scale that software and payments companies like PayPal enjoy, earnings per share surged 121% year over year.
PayPal also raised TPV and earnings guidance for this fiscal year and expects a record-setting number of net new accounts around 70 million.
Marvell Technologies (MRVL)
Last but not least among the best tech stocks to buy for November is Marvell Technologies, another chipmaker on the list. Although it happens to be about a quarter the size of AMD at $25 billion, Marvell has recently gotten in on the acquisitions game, snapping up Inphi ( IPHI) for $10 billion.
Inphi’s focus couldn’t be on areas more ripe for long-term growth, with its eyes firmly set on data center and 5G mobile technology. Not only are those two areas in secular growth mode, but their growth should complement one another, as a sprawling number of 5G-connected devices require more data centers and cloud storage space to facilitate their functionality.
The Inphi buy is a horizontal acquisition, with Marvell’s current business already focused on the cloud data center and upcoming 5G wireless boom in the U.S. Marvell’s revenue growth clocked in at 11% last quarter, and analysts expect that to accelerate to about 17% next fiscal year.
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