AVV, SCT, CCC: 3 Technology stocks to invest for long term

Follow us on Google News:
 AVV, SCT, CCC: 3 Technology stocks to invest for long term
Image source: Shutterstock.com

Highlights 

  • The technology sector witnessed a sharp decline amid negative sentiments prevailing among investors.
  • The short-term factor has triggered the recent selloff in the technology stocks though long-term business prospects of the sector remain intact.

 


The Russia-Ukraine conflict has rattled the global stock market leading to a selloff in most of the sectors as investors across the globe fear uncertainty. The technology sector also witnessed a sharp decline amid negative sentiments prevailing among investors.

Besides the recent selloff due to war, tighter monetary policy, and rising bond yield had triggered profit booking in the technology stocks. The Nasdaq Composite index, which constituent technology stocks, has fallen nearly 20% this year.

The short-term factor has triggered the recent weakness in the technology sector stocks. Many technology stocks listed on the UK stock market witnessed a sharp decline. Although, the fundamentals and long-term business prospects of the sector remain intact.

3 Tech stocks to invest

© 2022 Kalkine Media®

Let us look at FTSE listed technology stocks that saw selloff and their investment prospects:

Aveva Group Plc (LON: AVV)

FTSE 100 listed company offers software solutions to engineering and industrial companies. It has operations in several countries. The economic recovery after the Covid-19 pandemic has benefitted the company as it offers software services to several industries.

 Aveva’s Annualised Recurring Revenue (ARR) grew by 9.6% for the 12 months to 31 December 2021, mainly due to growth in subscription contracts and higher demand for the company’s software solutions from industries like Food, Energy and Manufacturing.

Aveva Group Plc’s last close was at GBX 2,603 on 09 March 2022, with a market cap of £7,320 million. The stock has given its shareholders a 58.05% return in the last five years.

Softcat Plc (LON: SCT)

The company provides value-added IT infrastructure solutions like workplace technology, cloud services, and software licensing in the United Kingdom.

For the year ended 31 July 2021, Softcat’s gross invoiced income was up by 17.7% to £1,938 million, mainly due to strong demand for its products. The gross profit rose by 17.2% to £276.4 million, while its operating profit was £119.4 million. The company expects double-digit gross profit growth and higher operating profit in FY22.

Softcat Plc’s last close was at GBX 1,529 on 09 March 2022, with a market cap of £2,892 million. The stock has given 347.43% returns in the last five years to its shareholders.

Computacenter Plc (LON: CCC)

The IT infrastructure company has business operations in the UK and European countries. It offers cyber security, access management solutions, and information security management services.

Computacenter expects its total revenue to grow by 23% for the year ended 31 December 2021, with an adjusted profit before tax of £250 million. Also, the earnings per share is expected to grow for the 17th year in a row despite supply-related disruptions.

Computacenter Plc’s last close was at GBX 2,590 on 09 March 2022, with a market cap of £2,949 million. The stock has given its shareholders 214.04% returns in the last five years.

Note: The above content constitutes a very preliminary observation or view based on industry trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Featured Articles