Cyclical techs are riding high: Apple, Intel and Texas Instruments

Article Excerpt

The economic rebound following the first wave of COVID-19 in early 2020 has helped push these three leading technology stocks to near-record highs. We continue to like the outlook for all three, particularly as the second wave of COVID-19 continues to spur demand for personal computers and other electronic equipment. However, we feel Intel’s and Texas Instruments’ exposure to a wider variety of industries cuts their risk compared to Apple, which is still highly reliant on iPhone sales. APPLE INC. $142 is a hold. The company (Nasdaq symbol AAPL; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 16.8 billion; Market cap: $2.4 trillion; Price-to-sales ratio: 8.7; Dividend yield: 0.6%; TSINetwork Rating: Average; www.apple.com) gets 60% of its revenue from iPhone sales. The remaining 40% comes from sales of its Mac computers, iPad tablets and other products. Apple recently launched the iPhone 12, its first smartphone that runs on ultrafast 5G wireless networks. This should prompt consumers and businesses to replace their older models. The company also…