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The technology industry has always been a solid industry that outperforms the market.this S&P 500 Index and Nasdaq 100 Index Most of the assets of both companies are allocated in the information technology sector. Six of the seven largest stocks belong to the technology sector.
Non-tech companies such as Tesla (NASDAQ:Tesla) has been labeled a technology company to make it more attractive to investors. Almost every bank is classified as a fintech company. Long-term returns and index allocations show why there is such a demand for technology stocks. Investors may want to consider these top tech stocks for big returns.
Synopsys Technologies (SNPS)
Synopsys (NASDAQ:SNPS) is a semiconductor stock that hasn’t enjoyed the artificial intelligence boom enjoyed by its peers. Despite missing out on the super rally, the stock is still up a solid 55% over the past year.The stock is also up 15% year to date, boosted by Nvidia (NASDAQ:NVDA) has investors excited.
Partnering with Nvidia might bring more revenue, but Synopsys doesn’t need to partner with Nvidia to reward investors as it grew 402% over the past five years. It has momentum, producing valuable silicon wafers that power self-driving cars, machine learning equipment and other resources. However, this partnership will certainly help.
Synopsys reported solid profits for the first quarter of fiscal 2024. Revenue increased by 21% annually, and net profit increased by 65% annually.upcoming acquisitions ANSYS (NASDAQ:autonomous navigation system) will bring additional market share to the company and further strengthen its revenue and net profit growth. Many artificial intelligence stocks are well-known, but investors are starting to pay attention to this one.
CrowdStrike(CRWD)
mass strike (NASDAQ:Add, delete, modify and check) is a high-growth cybersecurity company with expanding profit margins. The company has annual recurring revenue of more than $3 billion, with revenue growing 33% year over year in the fourth quarter of fiscal 2024. Net profit increased by more than 200% annually.
These growth rates are solid for any company, but context makes them even better. Many cybersecurity companies have been losing ground and reporting significant growth deceleration. CrowdStrike is one of the few companies continuing to grow at a rapid clip, while providing guidance that suggests more of the same. This trend could help CrowdStrike eat up market share while its competitors try to protect their current position in the industry.
The stock has experienced an incredible run. The share price has risen 420% in the past five years and 150% last year. CrowdStrike’s stock price is even up 31% so far this year. The stock’s only flaw is its overvaluation, currently trading at a forward price-to-earnings ratio of 84 times. Expanding profit margins can make valuations more reasonable, but is only suitable for long-term investors who have held the stock for several years.
Oracle (ORCL)
Oracle (New York Stock Exchange:ORCL) is an attractive dividend growth stock that offers investment opportunities in cloud computing and various software products. The company only raises its dividend every two years, but each time it does so significantly. In March 2023, Oracle raised its quarterly dividend from $0.32 per share to $0.40 per share, an increase of 25%.
Oracle stock currently offers a dividend yield of 1.27%. Shares are up 43% over the past year and 135% over the past five years. The stock currently trades at a reasonable price-to-earnings ratio of 33 times.
Earnings for the third quarter of fiscal 2024 show that the company is growing while also expanding its profit margins. Oracle’s revenue increased by 7% year-on-year, and cloud revenue increased by 25% year-on-year. Cloud revenue accounts for more than a third of the company’s total revenue, so investors should expect revenue growth to accelerate as cloud computing takes a larger share. Net profit increased by 27% year-on-year.
As of the date of this report, Marc Guberti held a long position in SNPS.The opinions expressed in this article are the personal opinions of the author and are subject to InvestorPlace.com Publishing Guidelines.
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