4 Cheap Tech Stocks

These stocks are trading at double-digit discounts to their fair value estimates.

Vikram Barhat 31 May, 2021 | 2:27AM
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FAANG

The recent drop in technology stocks has created some rare buying opportunities for investors looking to add or expand exposure to the technology sector. However, given the level of economic uncertainty and jitters over higher inflation and rising interest rates, investors can't be too careful should be careful in their stock selection. Luckily, the relative underperformance so far this year of the tech sector compared to the benchmark may make things easier.

The Morningstar U.S. Technology index (just under 6%, expressed in U.S. dollars) is currently underperforming the S&P 500 (over 11%) for the year to date, as of May 27, 2021. However, the tech sector has handily topped the broader index over the one-, three- and five-year periods.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alphabet Inc Class C2,829.27 USD-2.02Rating
Facebook Inc A364.72 USD-2.24Rating
Microsoft Corp299.87 USD-1.75Rating
Tencent Holdings Ltd ADR58.90 USD1.06Rating

About Author

Vikram Barhat

Vikram Barhat  Vikram Barhat is a Toronto-based financial writer specializing in investing, stock markets, personal finance and other areas of the financial services industry. He also writes for CNBC, BBC, The Globe and Mail, and Toronto Star.

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