All the tech indicators continue to look bad. Intel Corp. (NASDAQ: INTC) had what looked like solid numbers, but slumping personal computer (PC) sales continue to weigh on the stock. News of suppliers in China getting smaller orders is rampant. This is all coming at a time when the overall market temperature is horrible, and all the dyed-in-the-wool bears are clamoring for a huge meltdown. Can investors possible look at technology now?
In a new research report from RBC, the answer is yes. But that comes with the caveat that investors have to be willing to have a longer term view and look past the near-term volatility. The firm feels that during earnings seasons four areas will be watched closely:
- iPhone units and gross margin expectations for the March quarter
- PC demand and implications for the hard disk drive silo
- Information technology (IT) spending trends for services, storage and servers
- Expense controls that aid free cash flow and earnings
RBC has three solid picks for aggressive investors to consider, and again the focus needs to be looking through 2016, and not next week. All three are rated Outperform.
Apple
This remains the world’s biggest and boldest technology company, and its stock is down a stunning 28% from highs posted in the spring of 2015. Apple Inc. (NASDAQ: AAPL) evolutionized personal technology with the introduction of the Macintosh in 1984. Today, Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, OS X, watchOS and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services, including the App Store, Apple Music, Apple Pay and iCloud.
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