What types of companies will have good years in 2014? According to a recent story by USA Today, technology companies are poised to celebrate a big and successful 2014. The article also claims that the tech sector will continue to be one of the most profitable.
A money-making industry
According to the USA Today story, in 2014 technology companies in the S&P 500 index are predicted to earn net income that is 9.3 percent greater than in 2013. USA Today quotes FactSet, a company that computes Wall Street earnings estimates, in making this prediction. This past year, the tech industry only saw its net income grow by 1.9 percent.
Profitable
Profit margins will continue to rise in this sector, too, in 2014, according to USA Today. The newspaper reported that tech firms expect to see an average profit margin of 15 percent to 16 percent in 2014. That, needless to say, is an exceptionally strong profit margin. To put it simply, tech firms in the United States should be quite profitable in the coming year.
Not shocking
Consumers love their technology. That love affair seems to be growing stronger. And the country’s younger shoppers seem particularly enamored with all things tech. How many teens wanted the newest video game consoles this holiday season? How many wanted new smartphones or high-end tablets? As consumers continue to grab hold of the latest in personal technology, it’s hard to argue that tech firms won’t be highly profitable for quite a while.