AAPL to ADBE: Should you consider these 5 tech stocks amid inflation?

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 AAPL to ADBE: Should you consider these 5 tech stocks amid inflation?
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Highlights:

  • Apple Inc. (NASDAQ: AAPL) revenue increased by 9% YoY in Q2, FY22.
  • Microsoft Corporation (NASDAQ: MSFT) revenue rose 18% YoY in Q3, FY22.
  • Accenture plc (NYSE: ACN) expects revenue of US$15.70 billion to US$16.15 billion in Q3, FY22.

The technology sector has the largest market capitalization in the US, with heavyweights like Apple, Microsoft, and NVIDIA Corporation. These companies offer various products and services, including smartphones, software, computers, and artificial intelligence solutions. These are considered growth stocks -thanks to their ability to invent and reinvent themselves according to the evolving customer needs. For instance, semiconductor companies are in huge demand because of the extraordinary growth in the EV industry, which requires semiconductors, especially in recent years.

Here we explore the five top technology stocks on the S&P 500 index.

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Apple Inc. (NASDAQ: AAPL)

Apple is one of the world’s leading technology firms specializing in manufacturing consumer electronics, like smartphones, computers, software, etc., besides offering related services. The company is based in Cupertino, California.

Its shares traded at US$150.12 at 2:26 pm ET on May 31, up 0.32% from their previous close. The AAPL stock declined 17.78% YTD.

Apple has a market cap of US$2.60 trillion, a P/E ratio of 24.4, and a forward one-year P/E ratio of 24.49. Its EPS is US$6.16. The 52-week highest and lowest stock prices were US$182.94 and US$123.13, respectively. Its trading volume was 90,978,500 on May 27.

The company reported net sales of US$97.27 billion in Q2, FY22, up 9% YoY. Its net income came in at US$25.01 billion, or US$1.52 per diluted share, compared to US$23.63 billion, or US$1.40 per diluted share in Q2, FY21.

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AAPL to ADBE: Should you consider these 5 tech stocks amid inflation?Source: ©2022 Kalkine Media®

Microsoft Corporation (NASDAQ: MSFT)

Microsoft Corporation specializes in computer software, consumer electronics, personal computers, etc. It is based in Redmond, Washington.

The stock traded at US$273.07 at 2:36 pm ET on May 31, down by 0.06% from its previous closing price. MSFT fell 18.37% YTD.

Its market cap is US$2.04 trillion, the P/E ratio is 28.56, and the forward one-year P/E ratio is 29.32. Its EPS is US$9.58. The stock touched a peak of US$349.67 and the lowest price of US$243.00 in the last 52 weeks. Its share volume on May 27 was 26,910,810.

The revenue rose 18% YoY to US$49.4 billion in the third quarter of fiscal 2022. Its net income came in at US$16.7 billion, or US$2.22 per diluted share, compared to US$15.45 billion, or US$2.03 per diluted share in Q3, FY21.

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NVIDIA Corporation (NASDAQ: NVDA)

NVIDIA is one of the top companies in the semiconductor industry. It manufactures GPUs for gaming and other professional markets. The company is based in Santa Clara, California.

Its shares traded at US$186.95 at 2:41 pm ET on May 31, down 0.62% from their previous close. Its stock value plunged 37.55% YTD.

NVIDIA has a market cap of US$469.82 billion, a P/E ratio of 50.3, and a forward one-year P/E ratio of 40.63. Its EPS is US$3.73. The 52-week highest and lowest stock prices were US$346.47 and US$155.01, respectively. Its trading volume was 73,837,940 on May 27.

Its revenue increased by 46% YoY and 8% QoQ to US$8.29 billion in Q1, FY23. Its net income was US$1.61 billion, or US$0.64 per diluted share, compared to US$1.91 billion, or US$0.76 per diluted share in Q1, FY22.

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Adobe Inc. (NASDAQ: ADBE)

Adobe is a software company specializing in digital content and other related products and services for developers, enterprises, and retail consumers. It is based in San Jose, California.

The stock traded at US$421.66 at 2:44 pm ET on May 31, down 1.53% from its previous close. The ADBE stock declined 24.12% YTD.

Its market cap is US$200.40 billion, the P/E ratio is 42.12, and the forward one-year P/E ratio is 38.65. Its EPS is US$10.07. The stock touched a peak price of US$699.54 and the lowest price of US$370.27 in the last 52 weeks. Its share volume on May 27 was 3,560,381.

The company posted a record revenue of US$4.26 billion in Q1, FY22, up 9% YoY. Its net income was US$1.266 billion, or US$2.66 per diluted share, compared to US$1.261 billion, or US$2.61 per diluted share in Q1, FY21.

Adobe expects its second-quarter fiscal 2022 revenue to be around US$4.34 billion.

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Top S&P 500 technology stocks: AAPL, MSFT, NVDA, ADBE, ACN

Accenture plc (NYSE: ACN)

Accenture is a leading technology company based in Dublin, Ireland. It offers network engineering solutions besides consultations on various technology-related matters.

Its shares traded at US$299.16 at 2:46 pm ET on May 31, down 1.64% from their previous close. The stock price fell 25.31% YTD.

Accenture has a market cap of US$190.39 billion, a P/E ratio of 30.3, and a forward one-year P/E ratio of 28.16. Its EPS is US$9.92. The 52-week highest and lowest stock prices were US$417.37 and US$268.17, respectively. Its trading volume was 2,759,014 on May 27.

The company's revenue increased by 24% to US$15.05 billion in Q2, FY22. Its net income was US$1.65 billion, or US$2.54 per diluted share, versus US$1.46 billion, or US$2.23 per diluted share in Q2, FY21.

Accenture expects its third-quarter revenue to be between US$15.70 billion and US$16.15 billion.

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Bottom line:

The harsh macroeconomic factors weighed on the technology sector this year. Additionally, mega-cap technology stocks are sensitive to interest rates. Hence, some analysts speculate that the Fed’s rate hikes may prove a disaster for the growth stocks already reeling under adverse market forces. The S&P 500 information technology sector declined 19.15% YTD. Therefore, investors should exercise due diligence before investing in the stock market.

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