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Investing For Growth: 3 Hot Tech Stocks To Watch

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Just a few weeks ago, Apple became the first-ever trillion dollar company. And Amazon could be next, with a projected $2.5 trillion (!) market value by 2024.

Not long before that, Amazon CEO Jeff Bezos became the richest man in modern history. (Homeboy’s sittin’ pretty on a $150B net worth—an insane $55B more than Bill Gates at number two!)

Yes, yes, the [AAPL] and [AMZN] gravy trains have already left the station. However you can still find some growth gems if you know where to look.

Here are three red-hot tech stocks you should pay attention to.

(Editor’s note: If you’re not investing, download Robinhood here, collect a free stock, and start trading—also free.)

1. Okta

Okta [OKTA] is a San Francisco-based cloud security firm that does “identity management services.” So in layman’s terms, this means stuff like multi-factor authentication, API access management, network integration—things like that.

Okta shares have been on fire as of, jumping an impressive 116% in 2018—and seemingly for no apparent reason. The cloud security firm has solid partnerships with Facebook and VMware, creating a robust foundation for growth.

The Upside

Even though Okta has yet to turn a profit, analysts are bullish on the cloud stock. They expect revenue to jump 37% year-over-year to $356.5M in fiscal 2019, 32% to $471M in fiscal 2020 and 41% to $665M in fiscal 2021.

The Verdict

In addition, earnings are expected to improve by 27% in 2019 and 39% in 2020.  Analysts have an average price target of $61.1 for Okta, leaving an additional 4.4% room in growth upside for the stock.

Current price: $58.51
Analyst high target price: $65
2018 growth: 128%

Related: ANALYSIS: 7 Tech Stocks You Might Want To Avoid

2. iRobot Corp.

iRobot [IRBT] designs and manufactures robots primarily for homes. (Here’s an example what one looks like.) After posting yearly revenue jumps, the robot manufacturer’s has expanded their list of products to keep up with the growth. It now includes cool stuff like robot maps to more useful products like pool cleaners and robot vacuums.

iRobot shares took a hit in April this year when news broke that Amazon is working on robots for the home.

The Upside

And while iRobot does face some competition, the stock still has some upside.

For one, iRobot is investing heavy in research and development to build new product lines and maintain market share in the home robotics market.

As of August, the stock is up close to 38% this year. And there could be more to come.

The Verdict

Analysts expect the firm’s revenues to see steady growth at around 20% a year until 2020. Unlike many tech companies, iRobot Corp is already profitable. In addition, its earnings are estimated to grow by 28% next year.

Current price: $105.6
Analyst high target price: $106.16
2018 growth: 
38%

3.Roku 

Credit: Roku.

Roku [ROKU] is a video streaming subscription service, just like Netflix. With over 22M subscribers, Roku’s one of the largest content distribution companies in the United States.

While the OTT space has attracted heavyweights like Apple TV, Chromecast, YouTube and Amazon’s Fire Stick, Roku’s as reliable an OTT option of any, partnering with one out of five Smart TV’s in the US.

According to a recent survey by research firm William Blair, Roku’s adoption rate (meaning people who start using it) is up eight percentage points from last September. The only other competitor with similar growth was Amazon.

(Chromecast didn’t improve at all, while Apple TV grew just three percentage points.)

The Upside

Shares of Roku have risen over 16% in 2018. The company has been able to beat earnings and revenue estimates in three of the last four quarters that has driven its stock price upwards.

As far as content, the company has a catalog of over 5,000 channels, a low subscription price point, and it has potential growth in emerging markets as well much like Netflix.

The Verdict

Altogether, OTT revenue is expected to almost double from $46.5 B in 2017 to $83.4 B in 2022. According to analysts, expect Roku revenues to rise by an average of 35% year-over-year over the next three years.

Despite this growth, Roku hasn’t turned a profit yet, but they’re not far behind. Analysts expect earnings to surge by 94% in 2018—leaving plenty of promise for future scores. (If we’re to believe Wall Street.)

Current price: $60.09
Analyst high target price: $68
2018 growth: 
16%

Word to WealthLABBERS: Analyst target prices in this piece come from Yahoo Finance and are merely estimates of future performance. They are NOT a historic predictor of future results.

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INFOGRAPHIC: How To Invest Your Money (In 8 Simple Steps)

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Plenty of savers are making do with low rates of return on their deposits—almost eroding the value of their savings. Here’s a guide on how you should invest your money and gain some great returns off it.

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Stock Trading: How to Choose the Best Online Brokers

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Stock trading can be a risky business but done right it is an extremely lucrative investment option which yields excellent returns. It is true that trading is quite intimidating for someone who is new to the market and its ways which gives rise to the need for a good stock broker who can handle the job and ensure that the client gets the best returns possible for the money he or she is investing. But as a new investor it is absolutely important that you choose a very good trading broker. Here are some tips that will help you make that choice better.

Understand your trading needs

Before you even look into the services of a trading broker, it is essential that you are aware of your goals and needs from your stock trading. Firstly, prioritise your investment value, short term and long-term goal, and time that you are willing to spend on your trading in order to figure out where you stand. Now, narrow down on the specific kinds of stock exchange that you are looking into. With the wide variety of options available that you can choose from, it is important to narrow down to the specific field or fields and finally look for brokers who suit your specific needs.

Have a clear talk about trading fees

It is important to have a clear-cut discussion on brokerage fee and commissions that your broker will charge you. Ask about the charges per transaction, basic account charges, account minimums and even reimbursements if and when you choose to part ways so that you can have a proper idea about how much you are about to fork out for your trading. It is a good idea to have the talk beforehand so that you do not get into an arrangement which later becomes financially burdensome for you.

Look up reviews on the broker

You would not buy a new product without checking what its previous users have to say, right? Similarly, look up your prospective brokers No matter how promising or lucrative a broker seems with the terms, make sure you check the reviews by InvestinGoal to ensure that you are actually getting a good deal and not being sweet talked into not a good broker or even worse, being conned of your money.

Ask your questions

Do not be afraid to ask whatever questions that come to your mind before you make a deal. This will help you understand your trading better and thus, to get the absolute best out of your investment. It will also help you uncover any hidden charges, non transparent clauses as well that might have later hindered the desirable growth of your stock.

Give a test run

Ask the broker if you can give a test run of your account, and his technology before you actually invest your hard earned money. Many brokers allow you to create a free account which you can use to test their platform and check out user friendliness, ease of trading, quality of tools etc and thus, make an educated decision.

Getting the right broker is definitely one step towards a good stock trading investment. Therefore, it is very important that you take utmost care in picking the very best broker for your trading needs.

This article originally appeared on ValueWalk. Follow ValueWalk on Twitter, Instagram and Facebook.

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3 Simple Steps To Build Your Investment Portfolio

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If you’re starting out with planning your investments, chalking out your goals and how you’d like to achieve them is incredibly important. You’ll need to understand what kind of assets you’d like to invest in–be it exotic instruments like private equity or the tried and tested ones like the treasury bonds, ETFs and stocks–and invest right. Here are three key strategies to build your portfolio:

1. Building Wealth Is All About Thinking Rationally (And Smart)

Having the right mindset can play a huge role in how you build your investments. It’s simply not just about strategy. To ditch following the latest fad in the market, you need to be responsible and have a sense of social indifference–coupled with confidence and patience.

2. Invest Like A Cheapskate

If you’re pumping in $150,000 as investment, on which you incur 1% as fees, look out for ways through which you can cut them down.

If you were to cut costs by a little more than a half, that’s saving you at least $1,120 in fees every year. But that’s not it–when this saving is compounded every year, that 1% fee can tally up to a million (if saved, could win you your big ticket to becoming a millionaire!)

3. The KISS (Keep It Simple, Silly) Rule

Funnily enough, most of us think investing your way through millions demands extensive knowledge of financial instruments or strategies. Surprisingly, it’s the simplest of assets that gave the biggest investors their biggest wins. Many successful investors highlight their success to stocks, bonds and other popular alternative investments, patiently held over time.

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