AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
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.
© 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.
