Just One Of These Popular Tech Stocks Is Worth Owning

Posted On November 12, 2020 9:58 am
By: Dividend Sensei

News of two vaccines being approved by the end of the month has sent value stocks soaring. JPMorgan predicts a rotation out of tech and into the most pandemic affected companies. This could create attractive opportunities to potentially buy the world’s highest-quality, hyper-growth tech stocks at reasonable or even attractive valuations. One of these two tech stocks is an above-average quality company, which is expected to grow 10% CAGR over time. It’s suffering from profit deterioration that makes me hesitant to recommend it even at 8X earnings.

In contrast, the other company is an 11/11 quality Super SWAN, and most analysts expect it to grow 17.4% CAGR over time. It’s 22% overvalued, but well worth watch listing for a future correction or bear market. There is a 90% probability that it will fall 30% over the next five years. I will be setting limits at a 5% margin of safety to ensure I profit from future market overreactions on one of the greatest tech companies on earth.

Continue Reading Here

About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.