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Top brands investing in technology for 2017

Digital transformation tends to reshape all aspects of business. As technology continues to evolve, the digital transformation will require careful collaboration. Companies that lagged in the past years seem to perform very well in the periods that follow.

6 Best Brands Investing in Technology

While it is not clear if that will be the case when 2017 rolls around, several of the market’s laggards are expected to be next year’s best stocks to buy.

Brands Investing in Technology

Adidas

In 2015, Adidas had its stocks gain by nearly 25 percent. Despite experiencing troubling moments, it has so far turned around and is seeking to carry its current momentum in 2017. Right now, it is ahead of its number one competitor Nike, which is currently struggling. Due to its growth potential in various areas, Adidas is so far a solid play.

Although the company may face competition from its rivals Under Armour and Nike, Adidas plans to take account of the increasing popularity of athletic apparel. The Stan Smith lifestyle shoe has seen a comeback, and the company has increased its marketing spending.

Netflix

So far, Netflix has expanded in over 130 markets around the world. In 2017, it expects its content spending to rise to $6 billion next year. This will have seen a $1 billion increase from 2016. In the past years, its shares have been seen to surge. This has been driven by rapid growth as television was redefined.

This year, the stocks have been down by 12.7 percent since investors fretted about slowing growth in its increasing competition. Given the way Netflix is tied to subscriber growth, investors have had a genuine reason to worry. However, the same cause of the crash of Netflix stock will be the same reason it will become a top performer in 2017.

More than ever before, Netflix is set to receive a major boost.

Amazon

Over the past 20 years, Amazon has grown exponentially. It has been taking many marketing shares and expanded its services to new arenas. Since the first quarter of 2016, its stock prices have risen by 17 percent. While competition is headed to a headwind, Amazon will continue to grow and offer its client base a variety of benefits.

Like Apple, Amazon has a line of devices and benefits that make it easy for consumers to choose it over its competitors. This has held true even when prices have favored other firms. So far, customers are enjoying free and fast shipping, and TV and movie streaming. The cloud computing arm of Amazon has the largest capacity in the market.

This is a big gain for the stock, given that the industry is set to expand more in 2017.

Apple

Despite having an extremely bad year in 2016, Apple will be very attractive next year. In the past years, it has been one of the world’s greatest brand names. In May 2016, the dividends increased to 0.57 percent per share. The next bump is expected to be seen around the same time next year.

There may be questions on where to find future growth by the company, but for the investors, there are no red flags ahead.

XPO Logistics Inc

In the first half of 2016, XPO registered a 33 percent drop. This was a clear indication that investors had lost hope in it. XPO has however been seen growing from $200 million to a massive revenue of $15 billion towards the end of 2016. This is a growth that has taken place within 5 years.

It got to this point through acquisitions and mergers. In the year ahead, it could double its stock and still be cheap.

Sketchers

Over the past 12 months, Sketchers has been down 40 percent. In the past 2 decades years, it has been reported to fall by 20 percent, which caused major problems for the company. The problems touch on margins and price pressure. After three years of margin expansion, the peak margins are not the end.

In the foreseeable future of 2017, it is expected to gain a double digit and trade at attractive earnings per share. Although the sentiment is sour at the moment, Sketcher’s growth will gain respect in 2017.

Conclusion

The tech world is highly appealing to investors. What bothers most investors is the identification of the most promising company to invest in. While there are large global brands that seem to offer a haven, the aforementioned are worth considering and keeping track of in 2017.

About the author

Pranay Anumula

Hi! I am Pranay Anumula, an ECE engineer by profession, a music lover by passion , a tech enthusiast and a part time blogger. Been in this part time blog kind of thing since May 2015. Want to know about me ? Continue Reading

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