GVA Research on BNN: Potential for a U.S. tech sector bounce

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Tech – Sector Outperformed Broader Market Averages Off February Low, Investors Should Focus On Dominant Companies To Own Long Term: The tech sector has outperformed the S&P500 from the 2/11/16 low (Tech (XLK) +12.9% vs. S&P500 (SPY) +11.3%), so investors need to be cautious in considering valuation and concentrate their analysis on those companies to own over the long term. In the present environment of growing recessionary concerns, investors should own large cap stocks first and foremost before going further out the quality spectrum. In this regard, best to consider those companies in the technology sector that are successfully supporting an increasing range of daily activities for consumers and businesses alike as these should be the companies to demonstrate superior growth relative to the overall economy as well as other companies in the sector. We view AAPL, AMZN, FB, GOOGL, MSFT & PYPL as companies that fall into this preferred category of dominant companies investors should buy at lower levels.  

For further analysis, please see table below:

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