3 Top Tech Stocks to Buy in February

Many technology companies reached unprecedented highs last year driven by the massive increase in demand for their offerings during the pandemic. The Technology Select Sector SPDR ETF (XLK) was up a whopping 40% in 2020…

Though there is growing talk of new federal laws to limit unhealthy business practices of big tech stocks, like Amazon.com, Inc. (AMZN) and Alphabet Inc. (GOOGL), the technology sector is still expected to see growth in 2021.

As the companies in the tech space are reshaping how everyday life operates with their innovative products and services, investors should consider adding HP Inc. (HPQ – Get Rating), Dropbox, Inc. (DBX – Get Rating), and Jabil Inc. (JBL – Get Rating) to their portfolios. These stocks are well-positioned to generate massive returns in the near term.

HP Inc. (HPQ – Get Rating)

HPQ, famous for its portfolio of personal computers (PCs) and consumer PCs, also offers imaging and printing products, and related technologies, solutions and services. The company’s segments include Personal Systems, Printing and Corporate Investments. HPQ is also a top dividend stock with a four-year average dividend yield of 3.1%.

The company’s top-line surged 6.7% sequentially to $15.26 billion for the fiscal 2020 fourth quarter ended October 31, 2020. Consumer net revenue increased 24% year-over-year and total hardware units increased 14% year-over-year. Net earnings increased 72.2% year-over-year to $668 million. Non-GAAP EPS increased 26.5% sequentially to $0.62.

Analysts expect the company’s revenue to increase 6.7% for the quarter ending April 2021 and more than 2% in 2021. HPQ’s EPS is expected to grow 19.6% for the quarter ending April 2021, 15.8% in 2021 and at a rate of 10.7% per annum over the next five years. The company has an impressive earnings surprise history; it beat consensus EPS estimates in each of the trailing four quarters.

Yesterday, the company announced the appointment of Judith Miscik to its Board of Directors. Also, HPQ announced a number of executive leadership appointments on January 19, in order to further strengthen the company’s innovation capabilities and support its long-term growth strategy. It included the appointment of Tolga Kurtoglu as the Chief Technology Officer and Global Head of HP Labs.

The company declared a cash dividend of $0.19 per share on January 13, payable on April 7. Over the past six months, the stock rallied 39.3% to close yesterday’s trading session at $24.48. The stock is currently trading 6.4% below its 52-week high of $26.15.

HPQ’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to Buy in our proprietary rating system. HPQ has a grade of A for Value and a B for both Momentum and Quality.

To see additional POWR Ratings for Growth, Stability, and Sentiment for HPQ, Click here.

Dropbox, Inc. (DBX – Get Rating)

Based in San Francisco, California, DBX is an online company that provides online file storage and sharing services. With a presence in more than 180 countries, the company is building a smart workspace. DBX’s platform allows individuals, teams, and organizations to collaborate and sign up for free through its website or app, as well as upgrade to a paid subscription plan in order to access premium features.

The company is scheduled to report the financial results for the fourth quarter and fiscal year ended December 31, 2020 after the market closes on…

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