Take advantage of the downturn and grab these 3 quality large-cap tech stocks now By StockNews
Â© Reuters. Take advantage of the downturn and grab these 3 quality large-cap tech stocks now
The uncertainty surrounding the latest strain of COVID-19 has scared investors around the world. Against this backdrop, we believe it might make sense to bet on high-quality large-cap technology stocks Microsoft (MSFT), Alphabet (NASDAQ 🙂 and Broadcom (NASDAQ :). Given their strong growth prospects, the decline in their share prices offers an interesting entry point. Read on. Stocks and other assets plunged during the post-Thanksgiving trading session as the World Health Organization (WHO) announced a highly mutated strain of the COVID-19 virus that is of concern. WHO said: “Preliminary evidence suggests an increased risk of re-infection with this variant, compared to other VOCs.” WHO has designated B.1.1.529 as VOC, named Omicron.
Investors were already treading cautiously amid the surge in COVID-19 infections in Europe. And the emergence of the new strain of COVID-19 has scared them even more. Global markets plunged as early reports suggested this variant may be more heritable than the Delta variant. Tech stocks had pushed market indices higher in 2020 due to an unexpected increase in digitization and working from home arrangements. The tech industry is expected to grow further for the foreseeable future due to the increasing applications of technology solutions across multiple industries and the continuing trend of hybrid work. According to Forrester’s report, U.S. technology spending is expected to grow 7.4% in 2021 and 6.7% in 2022.
Against this backdrop, we believe it might make sense to pick up high-quality, large-cap tech stocks Microsoft Corporation (NASDAQ :), Alphabet Inc. (GOOGL) and Broadcom Inc. (AVGO). They are currently trading below their respective 52 week highs. However, they have immense growth potential and could offer stable returns even if the market remains volatile.
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