December 11th, 2017

4 Top Tech Stocks on the Robinhood 100 to Buy in December

The Robinhood 100 list gives a good sense of popular stocks held by Millennials. So, it is no surprise that a number of technology stocks are on the list. Sony (SNE), Alphabet (GOOGL), Microsoft (MSFT), Alphabet (GOOGL), and NVIDIA (NVDA) are four such stocks with strong fundamentals that could be good additions for your portfolio.

The Robinhood app is one of the most preferred investment platforms for millennials. And the Robinhood 100 list is the go-to place for investors to get a sense of what stocks millennials are most interested in.

Technology sector stocks have really been one of the most sought-after sectors since the start of the pandemic. The way we live our lives has changed significantly and technology has played an important role in helping us stay functional. Cloud Computing, e-commerce, and gaming companies have significantly benefited and are best positioned to gain going into 2021.

The Robinhood 100 list features many large cap technology stocks that are fundamentally sound. Four such stocks are Sony Corporation (SNE), Alphabet, Inc. (GOOGL), Microsoft Corporation (MSFT), and NVIDIA Corporation (NVDA). These tech bellwethers are constantly innovating to meet changing market demands.

Sony Corporation (SNE)

SNE is a global leader that designs, manufactures, and sells a vast portfolio of electronic equipment, instruments, and devices for consumer, professional and industrial markets. It is also synonymous with game consoles and software.

According to new estimates from VGChartz, SNE has already sold 2.1 million to 2.5 million units of the PlayStation 5 within two days of its launch on November 12th. An estimated 1.3 million to 1.6 million units were sold in North America, Australia, and Japan.  

During the quarter that ended September 2020, SNE’s sales dropped 0.4% year-over-year to JPY 2.1 billion. Meanwhile, EPS surged 146.5% year-over-year to JPY 374.34. The company’s operating income for the quarter climbed 14% year-over-year to JPY 38.8 billion driven by significant gains in the Game & Network, Electronics Products & Solutions, and Music segments.

Analysts estimate revenue for the quarter ending December 2020 to increase 8.7% year-over-year. Meanwhile, EPS is likely to grow at the rate of 5.2% per annum for the next five years.

SNE closed at a price of $93.23 in Wednesday's trading session, gaining 33.5% year-to-date. The stock is trading quite close to its 52-week high of $93.50. During the past six years, SNE has gained 43.6%.

How does SNE stack up for the POWR Ratings?

A for Trade Grade

A for Peer Grade

A for Buy & Hold Grade

A for Overall POWR Rating

The stock is also ranked #1 out of 21 stocks in the Entertainment - Media Producers industry.

Alphabet, Inc. (GOOGL)

GOOGL remains one of the most sought-after consumer tech stocks, especially in the digital advertising space. Along with Facebook (FB), it commands nearly 70% of the digital advertising market in the United States. As a search engine, it controls over 90% of the global market. Besides the core search engine, GOOGL also has a lot of other businesses under its umbrella. YouTube, Google Play, and its Smart Home speakers have become a lot more relevant amid the pandemic.

GOOGL’s revenue during the third quarter ended September 2020 grew 14% year-over-year to $46.2 billion. The company’s revenue was driven by a recovery in the advertising revenue. Ad revenues from YouTube jumped 32.6% in the third quarter. At the end of the third quarter, the combined paid subscriber base of YouTube Music and YouTube Premium was more than 30 million. Meanwhile, GOOGL’s EPS for the third quarter climbed 62% year-over-year to $16.40.

The street expects revenue for the quarter ending in December to be $53.1 billion, up 15.2% year-over-year. Meanwhile, EPS is likely to grow at 16.5% per annum over the next five years.

On a year-to-date basis, the stock rose 31.7% to end Wednesday’s trading session at $1,764.13. Over the past six months, GOOGL has gained 24.8%. The stock is currently trading 3% below its 52-week high of $1,816.89.

It’s no surprise that GOOGL is rated a “Buy” in our POWR Ratings system. It also has an “A” for Trade Grade, Peer Grade, Buy & Hold Grade, and Industry Rank. Out of 59 stocks in the Internet industry, it is ranked #2.

Microsoft Corporation (MSFT)

MSFT is a global leader in the cloud computing space, as well as operating systems for the past four decades. Today, its cloud platform, Microsoft Azure, has become the flag bearer of its growth story. Besides Azure, MSFT continues to offer its Windows operating system along with developing and selling the Xbox gaming consoles.

With its diversified product offerings, MSFT has been capitalizing on the pandemic. The recently launched Xbox Series S and Series X are likely to do wonders for MSFT’s gaming segment amid high demand ahead of the Holiday season.

MSFT’s revenue jumped 12% year-over-year to $37.2 billion during the first quarter that ended September 2020. Revenue for the Intelligent Cloud segment, which includes Azure, climbed 20% year-over-year to $13 billion. The company also maintains a consistent profit margin besides a robust revenue growth. It is worth noting that in spite of tough competition in cloud computing and a mature business model, MSFT generated a profit margin of 37.3%.

According to analysts, MSFT is expected to witness revenue growth of 8.9% year-over-year for the quarter ending December 2020. EPS is expected to increase at a rate of 14.5% per annum over the next five years.

On a year-to-date basis, MSFT has gained 35.6% to close at $213.87 Wednesday. During the past six months, the stock has climbed 16.5%.

MSFT is rated a “Strong Buy” in the POWR Ratings. It holds a grade of “A” in Trade Grade, and a “B” in Peer Grade, Buy & Hold Grade, and Industry Rank. It is also the #25 ranked stock in the Software - Application industry.

NVIDIA Corporation (NVDA)

NVDA is a global leader in manufacturing graphics processing units (or GPUs) and chipsets. These are the most critical components in gaming, AI, and autonomous vehicles. The company has processing capabilities enabling scientists and researchers for conducting high-performance applications with excellent efficiency. NVDA also manufacturers the Tegra mobile processors for tablets, smartphones, entertainment systems, and automobile navigation.

Earlier this month, NVDA launched the next generation of NVIDIA® Mellanox® 400G InfiniBand, which allows scientific researchers and AI developers to solve complex global problems with high-speed networking performance.

During the third quarter that ended October 2020, NVDA’s revenue jumped 57% year-over-year to $4.7 billion, driven by 162% growth in Data Center revenue. NVDA’s gaming revenue also grew 37%. The company’s EPS also climbed 46% year-over-year to $2.12. NVDA is poised to grow due to its robust portfolio in gaming, cloud computing, autonomous machines, and AI.

Analysts expect NVDA’s revenue for the fourth quarter to increase 55% year-over-year to $4.8 billion. Meanwhile, EPS for the quarter is likely to climb 48.1% to $2.80.

On a year-to-date basis, NVDA surged 125% to close Wednesday’s trading session at $529.39. Over the past six months, the stock has rallied 46.6%.

It’s no surprise that NVDA is rated a “Strong Buy” in our POWR Ratings system. It has an “A” for Trade Grade and Industry Rank. It also has a “B” for Buy & Hold Grade. In the 86-stock Semiconductor & Wireless Chip industry, it is ranked #43.

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SNE shares were trading at $94.11 per share on Friday morning, up $0.88 (+0.94%). Year-to-date, SNE has gained 38.78%, versus a 14.58% rise in the benchmark S&P 500 index during the same period.



About the Author: Namrata Sen Chanda

Namrata is an accomplished financial journalist, with nearly a decade of experience. She specializes in interpreting news releases and framing investment strategies, and has worked with some of the leading companies in real estate, banking, insurance, mutual funds, financial research, fintech, and investment education.

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