Ziggma provides users with one of the most intuitive portfolio visualizers on the market. It is in fact the first application that is built around portfolio management. The platform’s portfolio visualizer helps you stay on top of your holdings and provides users with information related to portfolio yield, risk, and quality.
We believe tracking your portfolio is as important as picking the right stock. A majority of investors lose out on buying/selling opportunities as they seldom cut their losses and sell winners early. It’s quite possible that your portfolio is not properly diversified, thus increasing your risk significantly.
However, Ziggma’s portfolio visualizer tool will help you monitor your portfolio. Further, we also provide you with a Ziggma stock score based on back-tested algorithms that will help users make an investment decision faster.
In this article, we take a look at three such S&P 500 tech stocks that have a high Ziggma score and should be on your watchlist.
The first stock on our list with a Ziggma stock score of 100 is Facebook. FB is the largest social media platform in the world and in Q1 around 2.7 billion people all around the world used its applications each day. These include platforms such as WhatsApp, Instagram as well as Facebook Messenger. In terms of monthly active users, this figure rises to a staggering 3.45 billion as it accounts for 44% of the global population.
In the first quarter of 2021, FB reported revenue of $26.2 billion, an increase of 48% year over year. The company’s operating income almost doubled to $11.4 billion and adjusted earnings stood at $3.30 per share.
Facebook is already the second-largest digital ad platform behind Alphabet’s Google and this industry is forecast to grow at an enviable pace in the upcoming decade. Analysts expect Facebook to post sales of $115.8 billion in 2021 and $139 billion in 2022. Comparatively, its earnings are forecast to expand from $10.09 per share in 2020 to $13.05 per share in 2021 and $15.38 per share in 2022.
This shows us that FB stock is trading at a forward price to 2021 sales multiple of 8x and a price to earnings multiple of 25.06x. With a PEG ratio of less than 1, Facebook stock looks really attractive after we adjust for earnings growth.
Analysts tracking FB stock have a 12-month average target price of $384 which is 17% above the current trading price.
One of the giants in the semiconductor industry, NVIDIA also has a Ziggma stock score of 100. NVIDIA stock has returned a stellar 1,300% in the last five years and is up 3,460% in the last decade. It has been one of the top-performing stocks on the NASDAQ easily outpacing the broader markets.
The company is expected to report its quarterly results this week and investors expect sales to rise by 80% to $5.4 billion in the quarter ended in April. In the last quarter (ended in Jan), NVIDIA reported sales of $5 billion which were significantly higher than revenue of $3.1 billion in the prior-year period.
NVIDIA has experienced robust sales growth in the past year due to strong demand for its gaming and data center products. As companies rapidly shifted towards remote work, enterprises had to invest heavily in improving computing power to their digital networks.
The semiconductor heavyweight has increased sales from $11.7 billion in fiscal 2019 to $16.7 billion in fiscal 2021. Analysts expect sales to surpass $25 billion by 2023. Comparatively, its earnings are also forecast to almost double from $6.63 in 2019 to $12.1 in 2023.
Analysts tracking NVDA stock have a 12-month average target price of $669 which is 7% above the current trading price.
The final tech stock on our list is Arista Networks, a hardware networking company valued at a market cap of $25.8 billion. After a less than impressive 2020, Arista Networks is all set to expand its revenue and profit margins going forward.
In Q1 of 2021, Arista Networks reported revenue of $668 million, an increase of 28% year over year. Comparatively, its free cash flow also surged 29% to $248 million. The company’s management has forecast sales to increase by 27% in Q2 to $675 million which means it’s on track to post record revenue in 2021.
Analysts expect Arista to increase sales to $2.8 billion in 2021 and $3 billion in 2022, up from $2.3 billion in 2020. Its earnings are forecast to rise from $8 per share in 2020 to $8.7 this year and $9.71 next year. ANET has a score of 85 by Ziggma for growth, and 100 for profitability and financial position.
The final takeaway
Looking at the growth prospects of these companies, we can see why the Ziggma stock score is among the highest for the tech stocks. Each of these companies is growing their revenue and profit margins at a higher pace compared with peers and will benefit from multiple secular tailwinds in 2021 and beyond.
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