Intel, Oracle And Cisco Stock: Will Tech’s Old Guard Beat The Market In 2021?

Intel, Oracle And Cisco Stock: Will Tech’s Old Guard Beat The Market In 2021?

Our theme of Value Tech Stocks has underperformed the market in recent years, rising by just about 29% since the end of 2017, compared to the S&P 500 which is up by about 46% over the same period. The theme includes tech companies that offer essential technology products and services, have a market capitalization of over $10 billion, and trade at a trailing price to earnings multiple of under 20x. In comparison, the broader NASDAQ index trades at a much higher 40x trailing P/E. However, we believe that the stocks in our theme have lower price risk in the current market environment, and at the same time could offer reasonable upside from increasing digitization and higher corporate IT spends following Covid-19. Below is a bit more about the stocks in the theme and some trends that could help to drive them higher in the near-term. Intel stock stock has been the best performer within our theme this year so far, rising by about 26% since early January, driven by stronger than expected Q4 results and guidance for the current quarter, …
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