Tingo Group Inc., Aehr Test Systems, and Super Micro Computer Inc. are among the top-performing tech stocks this month, each providing investors with returns in excess of 150% in the past year.
The Technology Select Sector SPDR Fund (XLK), a benchmark for tech stocks, has risen about 12% in the past 12 months, outperforming the broader market amid increased interest in artificial intelligence. The Russell 1000 Index rose 3% over the same period.
We look at the top tech stocks in three categories: the best value, the fastest growth, and the most momentum. All data are as of May 5.
Best Value Tech Stocks
Value investing is a factor-based investing strategy that involves picking stocks that you believe are trading for less than what they are intrinsically worth, usually by measuring the ratio of the stock’s price to one or more fundamental business metrics. A widely accepted value metric is the price-to-earnings (P/E) ratio.
Value investors believe that if a business is cheap compared with its intrinsic value (as measured by its P/E ratio, in this case), then its stock price may rise faster than that of others as the price comes back in line with the worth of the company. These are the tech stocks with the lowest 12-month trailing P/E ratio.
|Best Value Tech Stocks|
|Price ($)||Market Capitalization (Market Cap) ($B)||12-Month Trailing P/E Ratio|
|Daqo New Energy Corp. (DQ)||44.73||3.5||2.2|
|Avnet Inc. (AVT)||42.76||3.9||4.7|
|Himax Technologies Inc. (HIMX)||6.78||1.2||5.0|
|Nokia Oyj (NOK)||4.11||22.9||5.2|
|Arrow Electronics Inc. (ARW)||119.64||7.0||5.5|
- Daqo New Energy Corp.: Daqo is a Chinese monocrystalline silicon and polysilicon manufacturer developing products mainly used in solar energy applications.
- Avnet Inc.: Avnet provides supply chain and logistics services, distribution, and design support for electronic components. It ships about 283 billion units annually and employs 15,300 people. On Feb. 16, Avnet announced a first-quarter dividend of $0.29, payable on March 15. The company has consistently increased its dividend for two years.
- Himax Technologies Inc.: Himax is a Taiwanese fabless semiconductor company. Himax unveiled in late March a new chip for AI applications in low-power Internet of Things (IoT) products.
- Nokia Oyj: Nokia is a Finnish-based operator of networking infrastructure.
- Arrow Electronics Inc.: Arrow offers products, solutions, and services focused on enterprise computing systems. On March 14, Arrow Electronics announced a collaboration with semiconductor company Qualcomm (QCOM) to establish Edge Labs, an incubator for the development of edge computing and AI products.
Fastest Growing Tech Stocks
These are the top tech stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and most recent quarterly YOY earnings-per-share (EPS) growth.
Both sales and earnings are critical factors in a company’s success. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the