Tech stocks appear to be bouncing back this morning as investors appear to be buying the dip after a 2.4% slide for the Nasdaq in yesterday’s session. Will this rebound have strength to to sustain, or will this be a ‘dead cat bounce’? Only time will tell. A move into the well established blue chips may be ill advised at the moment. However, there are some opportunities in lesser known tech names whose chance to move into the spotlight could be right around the corner.
Consider all of the opportunities 2020 has brought for the tech industry. All of the problems we’ve gone through recently need solving… And tech companies you’ve probably never heard of are becoming household names. The truth is, some of these once-unknown stocks ARE going to be the next Apple, Google, Amazon and Netflix. These are blue chips in the making, and we hope you and our other readers are millionaires in the making…
Our trade alert for today features a lesser known tech stock that has plenty of room to run in 2021.
NetApp (NTAP) produces storage devices for networks. It went through the 1990s dot-com bubble under the name Network Appliance. It reconfigured itself into a hybrid cloud company during the 2010s, and it now competes with the likes of International Business Machines (IBM) and EMC. They provide a full range of hybrid cloud data services that simplify management of applications and data across cloud and on-premises environments to accelerate digital transformation.
NetApp has focused more on software than hardware recently, creating services such as Active IQ, which allows users to gain insights via machine-learning algorithms and spend less time managing infrastructure.
Several analysts see upside in the years ahead. Morgan Stanley analyst Katy Huberty upgraded NetApp from being Equalweight to Overweight with a price target of $76. The analyst commented, “NetApp demonstrates meaningful operating leverage in economic recoveries and historically outperforms the rest of our coverage post a trough in IT spending intentions.” Cloud Data Services adoption is accelerating, and strong demand is likely to continue.
NTAP is down 12.5% from it’s Feb. 24th ATH despite a Q3 earnings beat, and down 3.5% for the year. Still the stock is up nearly 60% for the past 12 months, outperforming the computer storage device industry which only has an average gain of 41% over the same time period.
With a trailing twelve month P/E ratio of 18 the stock may have plenty of runway in 2021. The firm also recently raised its dividend to 3.07% – a positive sign for NTAP investors.
Where to invest $1,000 right now...
Before you consider buying Netapp, you'll want to see this.
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And it's not Netapp.
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But you have to act now, because a catalyst coming in a few weeks is set to take this company mainstream... And by then, it could be too late.
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