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These big tech stocks, including Square and Tesla, are expected to post the best sales growth as the US economy grows

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You might be alarmed when you see the headlines about the rising cost of living.

But rising consumer prices are a by-product of an economy that has been fueled by the government and stimulated by the Federal Reserve in an unprecedented way. This economic expansion can last for years and should benefit the biggest tech companies.

Below is a list of the top 30 tech companies in the Russell 1000 Index and their expected sales growth rates through 2023. Sales growth has been a key driver for tech-driven growth investors .

Lily: Cost of living posts biggest increase since 2008, US CPI shows, as inflation spikes in economy

The headline above may raise concerns that rising inflation may cause a reversal of Federal Reserve policies that keep interest rates low. Fear of rising interest rates can cause a rapid reversal of a bull market for stocks, but this type of negative reaction was temporary in the years following the 2008 credit crunch.

Investors should also keep in mind that to keep long term low interest rates are in the government’s best interest to keep the cost of borrowing low. Looking at the end of 2019, before the coronavirus pandemic triggered drastic interest rate cuts, the yield on 10-year US Treasuries was 1.92%. This can hardly be considered high – at the end of 2007 the 10-year yield was 4.04%.

So be prepared for a nervous market when the Federal Reserve gives a clear signal of a policy change, but don’t panic. We have seen this before. You may remember the “taper tantrum” in the financial media before the Fed started to raise short-term rates at the end of 2015 (after lowering the target federal funds rate to a zero-to-zero range). 0.25% in December 2008). There were brief and minor pullbacks for the S&P 500 Index before and after the December 2015 drop – they were quickly forgotten by long-term investors.

Big Tech Sales Growth Screen

The following is a list of the top 30 tech stocks from the Russell 1000 Index RUI,
-0.28%.
We have defined “technology stocks” broadly. Among the actions FAANG – Facebook Inc. FB,
-0.25%,
Amazon.com Inc. AMZN,
-0.61%,
Apple Inc. AAPL,
+ 0.71%,
Netflix Inc. NFLX,
+ 0.68%
and the holding company Google Alphabet Inc. GOOG,
+ 0.36%

GOOGL,
+ 0.06%
– only one (Apple) is in the information technology sector, as defined by the S&P Dow Jones indices. The rest are all in the communications services industry, with the exception of Amazon, which is in the consumer discretionary industry.

The list therefore includes all FAANG, as well as Tesla Inc. TSLA,
-2.34%
and other tech-driven companies, such as Square Inc. SQ,
-0.68%,
Uber Technologies Inc. UBER,
-0.35%
and Zoom Video Communications Inc. ZM,
-0.30%,
which are not yet included in the S&P 500.

Here are the 30 biggest tech stocks in the Russell 1000, ranked by expected compound annual growth rates, based on consensus estimates through 2023 among analysts polled by FactSet. For three of the companies, estimates are only available through 2022, so they have a two-year CAGR and are marked with asterisks after the company names. Sales estimates are in millions:

Company CAGR of sales estimated over three years until 2023 Estimated turnover – 2023 calendar Estimated turnover – 2022 calendar Estimated turnover – 2021 calendar Turnover – 2020 calendar

Square Inc. Class A SQ,
-0.68%

40.00%

$ 26,062

$ 23,121

$ 20,305

$ 9,498

Tesla Inc. TSLA,
-2.34%

38.59%

$ 83,937

$ 68,024

$ 49,537

$ 31,536

Uber Technologies Inc. UBER,
-0.35%

35.99%

$ 28,011

$ 22,273

$ 15,865

$ 11,139

Zoom Video Communications Inc. Class A ZM,
-0.30%

31.46%

$ 5,498

$ 4,711

$ 3,879

$ 2,420

Micron Technology Inc. * UM,
-1.21%

30.21%

N / A

$ 38,223

$ 30,844

$ 22,544

ServiceNow Inc. NOW,
-0.55%

25.42%

$ 8,915

$ 7,178

$ 5,741

$ 4,519

Advanced Micro Devices Inc. AMD,
-0.64%

25.38%

$ 19,241

$ 16,957

$ 14,629

$ 9,763

Facebook Inc. Class A FB,
-0.25%

23.16%

$ 160,608

$ 138,150

$ 115,634

$ 85,965

Nvidia Corp. NVDA,
-1.50%

23.07%

$ 29,903

$ 27,069

$ 24,181

$ 16,042

PayPal Holdings Inc. PYPL,
-0.50%

21.20%

$ 38,160

$ 31,442

$ 25,853

$ 21,434

Amazon.com Inc. AMZN,
-0.61%

20.70%

$ 678,932

$ 581,346

$ 490,169

$ 386,064

Alphabet Inc. Class C GOOG,
+ 0.36%

20.12%

$ 316,036

$ 274,880

$ 235,732

$ 182,350

CRM Salesforce.com Inc.,
+ 0.31%

19.46%

$ 35,679

$ 30,614

$ 25,567

$ 20,930

Mastercard Inc. Class A MA,
+ 2.11%

18.54%

$ 25,485

$ 22,039

$ 18,436

$ 15,301

Intuit Inc. INTU,
+ 0.17%

17.49%

$ 12,580

$ 11,467

$ 10,012

$ 7,757

Adobe Inc. ADBE,
+ 0.68%

16.72%

$ 20,899

$ 18,302

$ 15,890

$ 13,142

Netflix Inc. NFLX,
+ 0.68%

16.04%

$ 39,054

$ 34,165

$ 29,699

$ 24,996

Visa Inc. Class AV,
+1.37%

15.99%

$ 33,521

$ 29,303

$ 24,808

$ 21,479

Applied Materials Inc. AMAT,
-0.34%

13.44%

$ 26,080

$ 24,961

$ 23,011

$ 17,867

Microsoft Corp. MSFT,
+ 1.11%

12.22%

$ 216,639

$ 198,849

$ 176,579

$ 153,284

Accenture PLC class A ACN,
+ 0.20%

11.18%

$ 61,910

$ 56,917

$ 52,151

$ 45,046

Qualcomm Inc. QCOM,
-1.06%

10.20%

$ 35,716

$ 35,468

$ 32,908

$ 26,690

Apple Inc. AAPL,
+ 0.71%

10.13%

$ 392,662

$ 372,749

$ 357,917

$ 293,971

Broadcom Inc. * AVGO,
-0.39%

9.16%

N / A

$ 29,100

$ 27,523

$ 24,419

Texas Instruments Inc. TXN,
-0.45%

8.76%

$ 18,602

$ 18,186

$ 17,480

$ 14,461

Fidelity National Information Services Inc. FIS,
+ 0.75%

8.38%

$ 15,978

$ 14,851

$ 13,752

$ 12,552

Cisco Systems Inc. * CSCO,
+ 0.10%

4.54%

N / A

$ 52,500

$ 50,654

$ 48,038

Oracle Corp. ORCL,
+ 0.01%

3.77%

$ 44,140

$ 43,145

$ 41,473

$ 39,499

International Business Machines Corp. IBM,
-0.63%

1.21%

$ 76,329

$ 75,212

$ 74,307

$ 73,620

Intel Corp. INTC,
+ 0.19%

-1.31%

$ 74,853

$ 72,668

$ 72,698

$ 77,867

Source: FactSet

Click on tickers to learn more about each company, including news, price ratios, and company profile ratings.

Data is based on calendar years as some of the companies have tax years that are not on the calendar.

For Cisco Systems Inc. CSCO,
+ 0.10%,
Broadcom Inc. AVGO,
-0.39%
and Micron Technology Inc. MU,
-1.21%,
consensus sales estimates are not yet available for the 2023 schedule. Therefore, the table contains two-year estimates for the CAGR of sales to 2022.

This is a screen of a single set of estimates – an important one. You should do your own research to make up your own mind about the long-term viability of a business before considering an investment.


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