tl;dr
Technology Select Sector SPDR Fund (NYSEARCA:XLK), which tracks the S&P 500's information technology sector, has gained 8.1% so far this year, underperforming the 10% gain of the broader S&P 500 index.The sector with the highest weightage on the S&P consists of companies ranging from Microsoft (MSFT...
Technology Select Sector SPDR Fund (NYSEARCA:XLK), which tracks the S&P 500's information technology sector, has gained 8.1% so far this year, underperforming the 10% gain of the broader S&P 500 index.
The sector with the highest weightage on the S&P consists of companies ranging from Microsoft (MSFT), maker of the Windows operating system, chipmaker Nvidia (NVDA), and cloud company Oracle (ORCL).
While tech may be dominating all the headlines, it underperformed Communication Services (XLC), Financial (XLF), Energy (XLE), and Industrial (XLI) during the quarter.
Industries 2023 Performance
Software & Services rose nearly 9% in the first-quarter, while Technology Hardware & Equipment tumbled about 7%, and Semiconductors & Semiconductors Equipment soared over 39%.
U.S. stock fund flows into and out of the technology sector have varied from week to week. The technology-focused ETF had a net inflow of $2.06 billion as of March 28.
Top 5 gainers and losers in Q1
- Gainers: Super Micro Computer (SMCI) 243%.
- Nvidia (NVDA) 83%.
- Micron Technology (MU) 36%.
- ... (truncated)
What Analysts Expect
Seeking Alpha analysts at large consider XLK a Buy. Of the four analysts, two consider it a Buy and two consider it a Hold. Analysts at Oppenheimer believe technology’s momentum is largely driven by complacency. According to SA analyst Danil Kolyako, "XLK ETF has potential for further growth, with Apple's announcement of iOS 18 potentially leading to a new rally." "Q4 FY23 earnings beat expectations, but Q1 guidance was subdued.... (truncated)
What Quantitative Measures Say
XLK secured a Buy rating from Seeking Alpha's Quant Rating system with a score of 4.42 out of 5. The ETF scored an A for both momentum and revisions, an A for expenses, a B for dividends, and a B- for risk.
More about Microsoft Corporation
Microsoft Corporation is a leading American multinational technology company, known for its software products like the Microsoft Windows line of operating systems and the Microsoft Office suite, as well as hardware products like the Xbox video game consoles and the Microsoft Surface lineup of personal computers. With a market capitalization of $1.31 trillion, the stock is currently trading at $423.87 per share, with a 52-week range of $312.61 to $457.10. The stock has shown a 1-year return of 38.04% and a 5-year return of 11.06%. The company has a strong market sentiment, with a Relative Strength Index (RSI) of 30.61, indicating a potential oversold condition. However, the stock is currently trading above its 200-day moving average, suggesting a bullish trend. Despite the positive indicators, it is important to consider potential risks and uncertainties in the market, as past performance is not always indicative of future results.
More about NVIDIA Corporation
NVIDIA Corporation is a leading American multinational technology company that specializes in designing graphics processing units (GPUs) for gaming and professional markets, as well as system on a chip units (SoCs) for mobile computing and automotive markets. With a market cap of $225.89 billion and a stock price of $904.36, NVIDIA has shown a steady upward trend, with a 7.61% increase in stock value. The company's P/E ratio of 75.8 and EPS of 0.16 indicate a strong performance, while a PEG ratio of 2.653 suggests potential overvaluation. Despite the positive financial metrics, market sentiment is cautious due to uncertainties in the semiconductor industry and potential risks associated with global economic conditions. It will be important to monitor support and resistance levels, as well as key technical indicators like the RSI and moving averages to assess the stock's performance in the coming months.
More about Oracle Corporation
Oracle Corporation is an American multinational computer technology corporation that sells database software, cloud engineered systems, and enterprise software products. As of the latest financial data, the company has a market capitalization of $345.24 billion, with a stock price of $33.14. The stock has shown a 1.6% increase in the last quarter, with a 3.79% dividend yield. The Relative Strength Index (RSI) stands at 19.21, indicating an oversold position. The company's net income is $52.51 billion, with an earnings per share of $129.31. The stock has seen a 0.25% price change in the last month, with a beta of 0.071.
This analysis suggests that Oracle Corporation is currently oversold, potentially indicating a buying opportunity. However, the stock's performance and market sentiment should be carefully monitored, as past behavior is not always indicative of future performance.
More about Super Micro Computer Inc
Super Micro Computer Inc. is a technology company specializing in electronic computers, with a market cap of $59.91 billion and a stock price of $79.94. The company has shown a positive performance with a 12.8% increase in stock price over the past year, reaching a high of $173.37. The stock has a beta of 0.0792, indicating a low level of volatility compared to the market. With a strong revenue of $9.25 billion and a net income of $914.66 million, the company has a healthy profit margin of 0.624. The current market sentiment for Super Micro Computer Inc. is positive, with a P/E ratio of 1.032. However, it's important to note that past performance is not always indicative of future results, and there may be potential risks or uncertainties associated with investing in this company.
More about Micron Technology Inc
Micron Technology Inc. is a leading producer of computer memory and data storage, specializing in dynamic random-access memory, flash memory, and USB flash drives. With a market capitalization of $132.05 billion, the company has shown a slight decrease in its stock performance, with a decrease of 3.43% over the past year. Despite this, the company has maintained a strong position with a current stock price of $119.42. The industry sentiment towards Micron Technology Inc. remains positive, with a Relative Strength Index (RSI) of 16.67, indicating potential for a bullish trend. However, it is important to note the potential risks associated with investing in the semiconductor industry and the overall market uncertainties. It is crucial to consider these factors before making any investment decisions.
More about Western Digital Corporation
Western Digital Corporation (WDC) is a leading American computer storage devices manufacturer with a market cap of $22.24 billion. The stock has experienced a 7.26% decrease in the past year, currently trading at $35.01 per share. Despite the negative trend, the Relative Strength Index (RSI) of -0.202 indicates a possible oversold condition, while the Bollinger Bands suggest a potential reversal in the near term. With a net income of $11.25 billion and a price-to-earnings ratio of 71.84, the company's financial position appears stable. However, market sentiment remains bearish, with a negative sentiment score of -0.41, indicating potential downside risks. It is important to note that past market behavior is not always indicative of future performance, and investors should closely monitor support and resistance levels and potential breakouts in the stock's price.
More about Juniper Networks Inc
Juniper Networks Inc (JNPR) is a technology company specializing in computer communications equipment with a market capitalization of $12,021,078,000. The stock is currently trading at $39.01, up 0.88 points or 0.95%. The Relative Strength Index (RSI) stands at 17.39, indicating an oversold condition. The stock has a market volume of 5,564,500,000. Despite the recent uptick, the stock is currently at $39.81, indicating a negative change of -0.307 or -0.058%. The market sentiment for Juniper Networks Inc appears to be bearish, with the stock possibly facing resistance at the current price levels.
More about Adobe Systems Incorporated
Adobe Inc. is a multinational computer software company, historically specializing in software for content creation and publication, with flagship products like Photoshop and Adobe Acrobat. With millions of users worldwide, the company has expanded into digital marketing management software. As of the most recent data, the stock price is $48.29 with a market cap of $226.06 billion. The stock has a 52-week range of $43.76 to $10.45 and a P/E ratio of 43.76. Market sentiment appears slightly bearish with a negative price change of 0.498 and a positive EPS of 0.113. The company operates in the technology and services-prepackaged software sectors, with a total revenue of $19.93 billion. It's important to note that past market behavior is not always a reliable indicator of future performance, and potential risks or uncertainties should be considered in any investment decision.
More about ON Semiconductor Corporation
ON Semiconductor Corporation is a manufacturing company that specializes in semiconductor components for electronic devices. The company's stock performance has shown a 4.89% increase, currently trading at $15.07 with a market capitalization of $8.25 billion. The Relative Strength Index (RSI) of 88.6 indicates that the stock may be overbought, and the negative values for the moving averages and Bollinger Bands suggest a bearish trend. While the company operates in a growing industry, the stock's performance and technical indicators point towards potential risks and uncertainties in the market sentiment.
More about Intel Corporation
Intel Corporation is the world's largest semiconductor chip manufacturer by revenue, with a market capitalization of $186.75 billion. The stock is currently trading at $110.42, with a 0.74% increase. The company has a price-to-earnings ratio of 12.94 and a dividend yield of 0.0312. Market sentiment for Intel is currently bullish, with a relative strength index of 41.51, indicating potential buying opportunities. However, there is a downside risk with a negative 0.717 beta, suggesting the stock may be more volatile than the market. It's important to note that past performance is not indicative of future results, and investors should consider potential risks and uncertainties before making any investment decisions.
More about Apple Inc
Apple Inc. is the world's largest technology company by revenue, totaling $274.5 billion in 2020. As of January 2021, it is the world's most valuable company. It is also the fourth-largest PC vendor by unit sales and the fourth-largest smartphone manufacturer. With a market cap of $2.65 trillion, Apple's stock has shown a steady increase, currently trading at $185.81. The stock has a 0.16% dividend yield and a beta of 0.021, indicating low volatility. Despite its strong financials and market position, it's important to note that past performance is not always indicative of future results, and there are potential risks and uncertainties associated with investing in Apple stock, as with any investment in the stock market.
More about Enphase Energy Inc
Enphase Energy Inc is a manufacturing company in the semiconductor and related devices industry with a market cap of $16.42 billion. The stock is currently trading at $39.28 with a 52-week high of $132.77 and a low of $3.08. The Relative Strength Index (RSI) is at 16.8, indicating the stock may be oversold. The stock is currently trading below its 200-day moving average of $132.77, suggesting a bearish trend. Enphase Energy Inc has a debt-to-equity ratio of 0.192, indicating a relatively low level of debt. Overall market sentiment for Enphase Energy Inc is negative, with a decrease of 0.874 in the stock price and a decrease of 0.582 in the RSI.
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