The Technology sector started slowly in 2021 as investors focused on value stocks. But the sector has come on strong in recent months (up 22% year-to-date) and now is outperforming the market (up 20.7%) as well as value sectors such as Consumer Staples (+8%), Utilities (+10%), Materials (+17%), and Industrials (+18%). The sector is the largest in the U.S. market and now accounts for more than 28% of the S&P 500. Over the long term, we expect the sector to benefit from pervasive digitization across the economy, greater acceptance of transformative technologies, and the development of the Internet of Things (IoT). Healthy company and sector fundamentals are also positive. For individual companies, these include high cash levels, low debt, and broad international business exposure. We have an Over-Weight ranking on the Tech sector and think investors should look to allocate up to 30% of their diversified portfolios to the group. Here is how we use our analysts' Tech sector ideas in our Focus List and Model Portfolios.
BLK, TGT, GOOGL, CVS, AAPL, CSCO, INTU, JPM, ADM, TXN, ADP, MSFT, TFC, ABT, ZTS, SPGI, UPS, CMI, NFLX, MSI, WY, DOW, NEE, JCI, ADBE, ANTM, SCHW, DVN, ISRG, AMZN
EVR, MSFT, BCRX, SRRA, DNUT, MNRO, QRHC, CERT, CHTR, DASH
ADC, CRTD, ATNX, MKTW, NICK, ETWO, BWFG, DNUT, VOLT, CWBC, PALI, MGI, LGVN, TCBI, COMM, BVH, SVRA, INTC, TURN, SLQT, EMMA, EYEN, LBAI, OPOF
TJX, HPQ, J, SPG, VNT