Our outlook for tech & communication services stocks

Investors should remain selective amid a generally uninspiring marketplace, while keeping an eye on secular themes.

Peter Wahlstrom 29 June, 2013 | 3:11AM

Highlights
Investors should remain selective amid a generally uninspiring marketplace, while keeping an eye on secular themes
A revised U.S. telecom landscape continues to take shape, but plenty of uncertainty remains.
The smartphone and tablet industries continue to thrive, and Apple and Samsung remain at the head of the pack, gaining share.

Second-quarter results across the technology and telecom sectors were generally muted if not unremarkable, as a relatively benign, if somewhat sluggish global macroeconomic environment provided a reasonably good backdrop for evaluating firms' "mid-cycle" earnings power. Key secular themes of pervasive mobility, social Internet and cloud computing continue to drive change throughout the technology and telecom sectors, while emerging trends such as big data and machine-to-machine computing will become increasingly important over time. As firms across the sector shift their portfolios to benefit from these trends, we believe that companies with the strongest competitive advantages -- wide and narrow moats -- are best positioned to capitalize on change over the longer term.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Peter Wahlstrom

Peter Wahlstrom  Peter Wahlstrom, CFA, is director of technology, media, and telecom equity research for Morningstar.

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies