The technology sector is comprised of businesses that sell goods and services in electronics, software, computers, artificial intelligence, and other industries related to information technology (IT). The sector includes companies with the largest market capitalizations in the world such as Apple Inc. (AAPL), Alphabet Inc. (GOOGL), and Microsoft Corp. (MSFT). Tech stocks, as represented by the Technology Select Sector SPDR ETF (XLK), have dramatically outperformed the broader market over the past 12 months, providing investors with a total return of 4.8% compared to the S&P 500's total return of -12.1%. These market performance numbers and the statistics in the tables below are as of March 17, 2020. Due to the COVID-19 crisis, markets are very volatile, so be very careful when investing right now.

Here are the top 3 tech stocks with the best value, the fastest earnings growth, and the most momentum.

Best Value Tech Stocks

These are the tech stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio. Because profits can be returned to shareholders in the form of dividends and buybacks, a low P/E ratio shows you’re paying less for each dollar of profit generated.

Best Value Tech Stocks

 

Price ($) Market Cap ($B) 12-Month Trailing P/E Ratio
NortonLifeLock Inc. (NLOK)   16.84 10.1 2.9
Xerox Holdings Corp. (XRX)   19.94 4.2 3.4
Seagate Technology Plc. (STX) 40.97 10.7 6.6

Source: YCharts

  • NortonLifeLock Inc.: NortonLifeLock engages in the consumer cybersecurity business, offering solutions that enable consumers to protect their electronic devices, online privacy, identity, and home networks. For its most recent quarter, Q3 FY 2020, NortonLifeLock announced better-than-expected financial figures, including reported billings growth of 4% year-over-year (YOY).
  • Xerox Holdings Corp.: Xerox offers digital print technology and related solutions. The company's capabilities include imaging and printing, data analytics, as well as the development of secure and automated solutions to improve productivity. On March 2, Xerox launched a tender offer for outstanding shares of HP, Inc., an attempt at a hostile takeover.
  • Seagate Technology Plc.: Seagate Technology is engaged in the development, production, and distribution of data-storage products and solutions. The company offers hard disk drives, other storage products, and data-recovery services.

Fastest Growing Tech Stocks

These are the tech stocks with the highest year-over-year (YOY) earnings per share (EPS) growth for the most recent quarter. Rising earnings show that a company’s business is growing and is generating more money that it can reinvest or return to shareholders.

Fastest Growing Tech Stocks

 

Price ($) Market Cap ($B) EPS Growth (%)
ServiceNow Inc. (NOW) 265.43 50.4 7,480
NortonLifeLock Inc. (NLOK) 16.84 10.1 4,300
Cadence Design Systems Inc. (CDNS) 54.60 15.3 574.3

Source: YCharts

  • ServiceNow Inc.: ServiceNow provides enterprise cloud computing solutions. The company offers cloud-based services that automate workflow within and between the separate departments of an enterprise. ServiceNow recently announced the launch of four emergency response apps to aid in COVID-19 crisis management.
  • NortonLifeLock Inc.: See above for company description.
  • Cadence Design Systems Inc.: Cadence Design Systems provides solutions that enable its customers to design electronics products. The company offers software technology, as well as services and technology that can be used in the design and development of complex chips and systems, including semiconductors.

Tech Stocks with the Most Momentum

These are the tech stocks that had the highest total return over the last 12 months.

Tech Stocks with the Most Momentum

 

    

                          

                                 

Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Advanced Micro Devices Inc. (AMD) 38.71 45.3 66.2
Apple Inc. (AAPL) 242.21 1,060.0 31.9
NortonLifeLock Inc. (NLOK) 16.84 10.1 26.6
S&P 500 (SPY) N/A N/A -12.1
Technology Select Sector SPDR ETF (XLT) N/A N/A 4.8

Source: YCharts

  • Advanced Micro Devices Inc.: Advanced Micro Devices is a global semiconductor company that offers products such as microprocessors, chipsets, graphics, video and multimedia products, and provides assembling, testing, and packaging services.
  • Apple Inc.: Apple designs and manufactures a variety of personal computing, mobile device, software, peripheral, and other related products. The company recently was fined approximately $1.2 billion by the French competition authority for antitrust violations, specifically for alleged participation in a cartel with wholesalers.
  • NortonLifeLock Inc.: See above for company description.