What types of companies are going to have good years in 2014? Based on a recent story by USA Today, technology companies are poised to celebrate a big and successful 2014. The article also says that the tech sector will remain one of the most profitable ones.
A positive outlook
According to USA Today’s story, 2014 should be an excellent year for tech companies. The paper, using data from FactSet, a firm that compiles Wall Street earnings reports, says that these companies should see their net incomes rise by about 9.3 percent in 2014. That’s a lot better than in 2013, when tech firms only saw their net incomes jump by an average of 1.9 percent.
Profit margins will rise in this sector, too, in 2014, according to USA Today. The newspaper reported that tech firms are expected to see an average profit margin of 15 percent to 16 percent in 2014. That, needless to say, is an exceptionally strong profit margin. In other words, tech firms in the U.S. should be quite profitable in the coming year.
This success shouldn't be surprising. Today's consumers are infatuated with their tech gadgets. And this is really a long-time trend. Just take a look at how popular tablets and smartphones are. Video-game systems remain hot sellers. And tech companies are evolving and updating their offerings on a near constant basis. Tech is certainly king today.
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