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Retirement brings in a number of challenges, including the replacement of income that seniors earn during their service life. And it is difficult to cover expenses from the traditional approaches to retirement planning, which include investment in fixed-income assets.
Therefore, we believe equity investments are a brilliant way to create solid income streams for the long run. Though these are riskier, equities are the only asset class that can beat inflation and simultaneously offer capital appreciation over a longer period.
Tech Stocks are the Best Picks
Tech stocks could be an intriguing choice for a retirement portfolio, considering the sector’s resiliency amid the coronavirus-induced panic sell-off in March. The coronavirus outbreak has, surprisingly, opened up newer avenues of growth for tech companies.
Shift in consumer preference for Internet-based services, owing to the increase in social-distancing practices, has propelled demand for PCs, notebooks and peripheral accessories. In addition, the growing demand for software and hardware that facilitates work-from-home setting is a key catalyst.
Furthermore, the sector’s resiliency can be attributed to the impressive long-term growth prospects of tech companies. Rapid adoption of cloud computing, along with the integration of AI and machine learning, has been a major growth driver.
The accelerated deployment of 5G technology — the next-generation wireless revolution — is likely to fuel further growth. Moreover, blockchain, IoT, autonomous vehicles, AR/VR, and wearables offer significant growth opportunities.
Choosing the Stocks
It is difficult to pick the right stocks from a wide range of available investment opportunities.
This is where the Zacks Stock Screener comes in handy. With the help of this screener, we have filtered four stocks that are incredible for retirement investment planning. These stocks carry a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Also, the stocks have a VGM Score of A or B. Per the Zacks’ proprietary methodology, stocks with such favorable combinations offer solid investment opportunities.
Synaptics Incorporated SYNA currently sports a Zacks Rank #1 and has a VGM Score of B. The long-term expected EPS growth for Synaptics is pegged at 10%. This San Jose, CA-based company is well poised to capitalize on its market-leading position for both touchpads and secure fingerprint sensors amid the upbeat trends in PC shipments.
Further, incremental adoption of the company’s edge SoCs integrated with AI and embedded neural network capabilities for smart video and audio devices is driving top-line growth. Additionally, the acquisition of Broadcom’s AVGO wireless IoT connectivity business (Jul 23) and the buyout of DisplayLink (Jul 31) have fortified Synaptics’ portfolio offerings.
Synaptics Incorporated Price and Consensus
Synaptics Incorporated price-consensus-chart | Synaptics Incorporated Quote
Virtusa Corporation VRTU is a global provider of digital business strategy, digital engineering, and information technology (IT) services and solutions that help clients change, disrupt, and unlock new value through innovation engineering. Currently, the company is banking on the trend of the growing global demand for digital and cloud transformations.
This Zacks Rank #1 company has a VGM Score of B. The long-term expected EPS growth for Virtusa is pegged at 14%.
Virtusa Corporation Price and Consensus
Virtusa Corporation price-consensus-chart | Virtusa Corporation Quote
Dropbox, Inc. DBX has been riding on the robust adoption of its latest desktop app driven by the coronavirus crisis, which triggered demand for cloud storage. This Zacks Rank #2 company offers a platform that enables users to access, store, synchronize and share files, photos, videos, songs, and spreadsheets.
Dropbox currently has a VGM Score of B. The long-term expected EPS growth for the company is pegged at 34.4%.
Dropbox, Inc. Price and Consensus
Dropbox, Inc. price-consensus-chart | Dropbox, Inc. Quote
eGain Corporation EGAN is benefiting from the robust adoption of SaaS and on-premise business-to-consumer (B2C) customer engagement solutions. The company’s solutions have been, in fact, adopted by notable enterprise customers that include Avon, Comcast, Fiserv and Vodafone.
This Zacks Rank #2 company has a VGM Score of B. The long-term expected EPS growth for eGain is pegged at 20%.
eGain Corporation Price and Consensus
eGain Corporation price-consensus-chart | eGain Corporation Quote
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don’t buy now, you may kick yourself in 2021.
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eGain Corporation (EGAN): Free Stock Analysis Report
Broadcom Inc. (AVGO): Free Stock Analysis Report
Synaptics Incorporated (SYNA): Free Stock Analysis Report
Virtusa Corporation (VRTU): Free Stock Analysis Report
Dropbox, Inc. (DBX): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.