Amid Poor Performance for Tech Stocks, Selloff Is Overdone in Software
Despite macro headwinds, we remain optimistic about long-term trends for cloud computing and rising semiconductor demand.
Brian Colello
Brian Colello, CPA, is director of technology equity research for Morningstar Research Services LLC, a wholly owned subsidiary of Morningstar, Inc. In addition to leading Morningstar’s technology sector team, he covers semiconductor and hardware companies. Colello was a senior equity analyst before assuming his current role in 2015.
Before joining Morningstar in 2008, he worked in public accounting for KPMG and served as a manager in corporate finance for BMG Music, a subsidiary of Bertelsmann AG.
Colello holds a bachelor’s degree in accounting from Bucknell University and a master’s degree in business administration from Wake Forest. He is also a Certified Public Accountant.
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Amid broad macro troubles, high-quality software stocks are trading with a nice margin of safety.
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Large-cap software has some margin of safety.
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Software is the most appealing subsector.
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The sector's expensive overall, and some valuations are downright alarming.
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Tech Bridged Gaps Created by Coronavirus
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We'd Welcome a Pullback in Overvalued Tech
We're still fond of software and cybersecurity firms.
Q2 Saw Tech Turbulence as Workers Sheltered at Home
What we expect from July.
Few Buy Ideas in the Tech Sector Today
Pandemic could speed up the transition to cloud computing and remote working.
Tech Sector Now Decently Undervalued
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Opportunities Are Arising in Software and Cybersecurity
Compared with the previous quarter, patient investors have some good opportunities.
A Leading Chipmaker Despite Virus Concerns
Microchip remains our top pick.
Prices Are Steep for Tech Stocks
Wait for a pullback in the sector, which currently has one of its highest price/fair value ratios since 2007.
Technology: A Few Hurdles, but Tech Stocks Continue to Run
No attractively priced subsectors, but cybersecurity is a hot topic.
Texas Instruments Sees Stronger Trade Headwinds
We'd seek a wider margin of safety before investing in this wide-moat firm.
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Technology: Sector Looks More Expensive Than at the Beginning of 2019
Opportunities now most common in software and online media.
Intel Undervalued and Compelling
Second-quarter results for the wide-moat firm were ahead of our expectations.
Infineon Remains a Powerhouse
The leader in automotive and power semiconductors is undervalued, in our view.
Technology: Opportunities Pepper Most Subsectors
We expect U.S.-China trade talks to lead to greater end product demand down the road.
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At this point, it looks like more a blip than a roadblock.
Technology: Semiconductors the Most Attractive Tech Subsector
Online media also looks like a compelling value.
Technology: Semiconductor, Software Firms On Sale
The market pullback has created opportunities for long-term investors.
3 Dividend Opportunities in Technology
For investors willing to weather the storm in the semiconductor space, we like Intel, KLA-Tencor, and Lam Research.
Skyworks Has Bright Prospects on the Horizon
It remains an industry leader in RF chips with an improving position in 5G.
Technology: Sector Appears Overvalued Despite Birth of First Trillion-Dollar-Market-Cap Stock in Apple
Cloud computing, trade wars, and M&A remain hot topics in the tech sector.
Market's Too Tough on Microchip
We see the short-term sell-off as a long-term buying opportunity.
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Communication Services: Undervalued With a Case of Merger Fever
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Reaction to Reduced iPhone Orders Overblown
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Cisco Continues Shift Toward Subscription Revenue
The narrow-moat firm's results were solid, and its fourth quarter forecast is in line with our expectations.
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We see value in several firms as consumers migrate away from traditional TV bundles and Europe invests in fiber and 4G.
Tech Sell-Off Healthy
With many technology names trading well above our fair value estimates, the recent pullback in the sector isn’t a huge surprise.
What's Next for Broadcom?
Now that the Qualcomm acquisition appears dead, we expect Broadcom to remain on the hunt for semiconductor M&A.
Microchip Technology Is Attractive
The wide-moat firm's post-earnings sell-off tied to near-term revenue deceleration is providing an attractive entry point for long-term investors.
Solid Results, Aggressive Buyback Plan for Cisco
We're raising our fair value estimate on the narrow-moat firm.
Apple's Surprise: Larger Dividends and Buybacks Coming
The firm's decision to adopt a more aggressive capital structure was the biggest surprise in Apple's results.
What Slashing Production of iPhone X Means for Apple
There's little evidence that customers are switching away from Apple toward Android-based devices, and this customer lock-in remains the source of Apple’s narrow moat.
Apple's Repatriation a Plus, but Don't Expect a Windfall
We don't expect the firm's larger U.S. cash balance to lead to exponential increases in dividends and buybacks.