IT Stock: 2018’s Top 5 by Performance
A period of heightening volatility occurs to the Information Technology (IT) last year. Since March 2009, upon a close to a decade as a leading market expansion comes toward lows. Fears on the slowing corporate earnings growth bring IT stocks to the development stage. Such fears include stock value inflation, regulation pressure, and specific sector headwinds. Despite those concerns, a few leading firms appear on the top. Leading the IT stock and doubling their value. In fact, all top five best performing firms post returns not lower than 36 percent.
A simple 2.1 percent year-to-date (YTD) gain comes to the IT industry of the S&P 500. A notable decline as compared to the previous year of sky-rocket returns to the tech investors. However, it outpaces the S&P 500’s decline of about 4.7 percent.
Currently, there are strong bear future forecasts for the U.S. tech giants. That recommends investors to go for a more defensive benchmark before circling back to the value plays. There are some who also view the season of sell-offs as an opportunity to purchase with discount those growing tech stocks before the year 2019 ends. Major tech trends including autonomous vehicle, Internet of Things (IoT), open source software, machine learning, cloud computing, and other spending software firms view a positive growth within the year 2019.
Now let us list down the top five IT companies performing well last year.
Advanced Micro Devices (AMD Inc.)
- – Stock performance in 2018: +83%
- – Market Cap: $19.9 billion
AMD Inc is a chip industry stock, posting 83.2 percent return last year. That brings the company to their three-year gain with about 700%. A significant steal on market share coming from the leading legacy industry. The company’s main location is in Santa Clara, California. A semiconductor firm, making computer processors and other related technologies. September last year, the business market see a near $34 per share following their all-time low in may amounting to $9. The company’s share goes down at about 44 percent upon a 52-week high until December 17.
- – Stock performance in 2018: +60%
- – Market Cap: $11.6 billion
Fortinet is a cybersecurity firm, developing and marketing cybersecurity software and appliances/services. Their product includes anti-virus, firewalls, endpoint security, and intrusion prevention. Even with a close to 28 percent decline during October last year, the 18-year-old firm gains more than a double of their return from the previous two years.
Red Hat Inc.
- – Stock performance in 2018: +47%
- – Market Cap: $31.1 billion
During October last year, IT giant, International Business Machine Corp. (IBM) announce a $34 billion takeover on the open-source software company – Red Hat Inc. The company’s main office is in Raleigh, North Carolina. While serving their enterprise clients, they’ve seen share spike on the news. That brings them about 46.5 percent YTD performance through December 17.
Keysight Technologies Inc.
- – Stock performance in 2018: +44%
- – Market Cap: $44 billion
The software company focuses on electronic test and equipment measurement. Their main location is in Santa Rosa, California. Keysight Technologies Inc starts as Agilent Technologies in 2014. As they see their shares jump last year, they’ve haven’t expected growth in Q4 fiscal result. Their profit gains about 19 percent amounting about $1.05 billion. The company’s adjusted earnings gain about 42 percent amounting to $1.05 per share. Keystone Technologies management is optimistic to expand its key growth sectors. That includes IoT, 5G, high-speed data centers, automotive, next-gen wireless, and energy. Ron Nersesian, the CEO, records a $3.9 billion profit last year. Nersesian notes that their company would “continue to see broad-based momentum across multiple end markets without solutions.”
- – Stock performance in 2018: +36%
- – Market Cap: $20.7 billion
Motorola Solutions focuses on data communication and providing telecommunications equipment. The company starts trading in January 2011 as a separate and independent company. Motorola Solutions survives the 2018 volatility. Benefiting on the strengthen period of larger wireless equipment industry. Advancement of demand for wireless services leads the company to a massive network extension plans. Aiming to boost the business. The company’s share stays about 8 percent lower compared to its 52-week high. All in all reflects a 36.4 percent YTD gain.