3 tech stocks to watch out for in 2021

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Summary

• Tech stocks are on the move, considering the sudden shift towards digital businesses observed over the last year.
• Three stocks that could make a mark in the coming year are -- Veeva systems, iRobot and Qualcomm Inc.
• Tech companies are experiencing increased demand for their products and services, giving them profitable quarters during the end of 2020.

The U.S. has dominated the global technology industry with some of the world’s tech leaders originating from the country. Tech leaders like Apple, Amazon, Facebook, and Google have created global hubbub and ripples throughout the stock market.

The year 2021 could be a big year for tech stocks, given how much digital businesses have benefited over the more traditional brick-and-mortar businesses in the last year. The coronavirus pandemic has forced people to be digitally equipped, with ever-evolving strategies available at tech companies’ disposal.

Here are 3 tech-based stocks on the move in 2021:

Veeva Systems

Veeva systems is one of the leading providers of the cloud-based solutions for life sciences industry. With companies continuously researching over the virus, life sciences industry is investing heavily in R&D.

Veeva Systems offers a mix of medical and technology domains, both of which could gain immensely in the coming periods. Veeva provides tools enabling biotech companies and pharmaceutical firms to conduct their research.

The company remained resilient throughout the pandemic and generated revenues worth US$377.5 million during the three months ending 31 October 2020. This was a 34% y-o-y increase from previous year’s October quarter revenue of US$280.9 million. The operating income during the third quarter was US$101.3 million and the net income was US$97 million.

The company’s growing digital presence led to its expanding leadership in core CRM, wherein it saw 19 new CRM customers in the quarter. Veeva has partnered with the leading biopharma firm to develop the firm’s commercial online launch.

Veeva systems is currently trading at US$282.91 per share, which is roughly a 112% increase over its March share price low. However, the company’s share prices have remained volatile throughout the previous year.

iRobot

iRobot has been engaged in the designing and manufacturing of robots to make daily work easier and before time. The company has been a leader in consumer robots and is the manufacturer of the globally-appreciated Roomba Robot vacuum.

iRobot’s products Roomba and Braava include propriety technologies as well as advanced concepts in cleaning, navigation, and mapping. The company also has a video collaboration platform, enabling workers to connect remotely. Additionally, the company has also ventured into healthcare through its RP-VITA telemedicine robot, which connects patients with doctors. These product categories are expected to help the company get better global outreach and expand its customer base.

iRobot recently reported its financials of the third quarter of FY20. The revenue incurred during the three months ending 31 October 2020 amounted to US$413 million, an increase of 43% over the same quarter last year. The operating profit during the period was US$93 million while EPS worth US$2.58. The company’s premium robots are at the heart of this growth. The quarterly revenue from premium robots grew by 86% and represented 60% of the quarter’s revenue.

The US territory recorded a revenue growth of 75% along with the revenue generation in other territories as well. The online-related business is expected to see a revenue growth of 70%.

iRobot is expected to expand its manufacturing capabilities by further investments in infrastructure. The current gains have stemmed majorly from decreased travel costs. However, this reduction in costs might not continue for long once traditional working conditions resume.

Qualcomm Inc.

Qualcomm is a semiconductor manufacturer and telecommunications equipment provider. The company is involved in the development of digital wireless communications products and services, AI technology, and 5G technology.

Qualcomm Technologies is a subsidiary of Qualcomm Incorporated. It conducts the company’s engineering, research and development functions, and is engaged in other products and services, like Qualcomm’s semiconductor business.

Qualcomm saw a profitable September quarter, owing to the company’s development in 5G technology. The company benefitted from its licensing and product business, as stated by CEO Steve Mollenkopf.

The revenue for the fourth quarter of the fiscal year was US$8,346 million, a 73% increase over the same quarter last year. Net income during the quarter was US$2,960 million, and the earnings before taxes were US$3,306 million.

The company entered into a long-term patent license agreement, which includes cross-license rights to certain Huawei’s patents. This happened after the US Ninth Circuit Court of Appeals validated Qualcomm’s patent licensing.

Qualcomm is also slated to provide General Motors with a range of chips for the company’s next generation vehicles, making it an interesting stock to watch out for in the coming months.