3 Tech Stocks To Buy And Hold In 2021: Taiwan Semiconductor, Match Group, And Zendesk

2020 has been one of the best years for tech stocks, as evidenced by the Technology Select Sector SPDR ETF’s (XLK) 40.8% gain since the beginning of the year. The COVID-19 pandemic has revealed the extent to which society relies on technology and how it has become integrated with many, many aspects of our economies and lives.

While coronavirus vaccine deployment in several countries led to a tech sell off earlier this month, the industry is poised to make a strong recovery we believe given the increasing dependence of people on technology for a plethora of reasons. Also, the renewed lockdown imposition across Europe and other countries has rekindled investor confidence in this industry.

Given this background, stocks such as Taiwan Semiconductor Manufacturing Company Limited (TSM - Get Rating), Match Group, Inc. (MTCH - Get Rating), and Zendesk, Inc. (ZEN - Get Rating) likely hold robust upside potential in 2021.

Taiwan Semiconductor Manufacturing Company Limited (TSM - Get Rating)

TSM is engaged in the manufacturing and sale of integrated circuits and semiconductor products. It also provides computer-aided design (CAD) services. The company serves customers in computer, communications, consumer, and industrial and standard segments in North America, Europe, and Asia.

Earlier this month, TSM was honored with the 2021 IEEE Corporate Innovation Award for its leadership in seven-nanometer semiconductor foundry technology. This award highlights the ability of its innovative platforms, which have enabled many revolutionary products in 5G mobile and energy-efficient, high-performance computing and other widespread applications.

TSM’s revenues have increased 21.6% year-over-year in the third quarter ended September 30, 2020. Its operating Income has increased 39.1% from the year-ago value, while EPS rose 35.9% from the same period last year.

Analysts expect TSM’s revenues to rise 22.6% to $12.75 billion for the current quarter ending December 31, 2020. The company has an impressive earnings surprise history; it beat the Street EPS estimates in the trailing four quarters. The consensus EPS estimate of $0.93 for the current quarter represents a 27.4% improvement from the year-ago value. TSM has gained 83.5% over the past year.

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