3 top technology stocks that can help you get rich through retirement

Reliable, high-growth stocks can change your retirement account, but unfortunately, finding a combination of these attributes in potential new stocks is not easy.

Chances are, you already know FAANG stocks-they have a well-known history in this type of investment.But for investors who want to see further, here are three other Fundamentally sound technology companies that have established competitive advantages in high-growth industries. Any of these stocks can be a valuable addition to your 401(k) or Roth IRA portfolio.

1. Serve immediately

Serve immediately (New York Stock Exchange code: NOW) Provide cloud-based tools to automate digital workflows for corporate teams, thereby improving employee productivity. The company examined all important options for long-term growth investments. Its income is growing rapidly, it has a clear competitive advantage in its field, and it generates a large amount of free cash flow.

ServiceNow occupies the largest single share of the IT service management market with a share of 37%. It has more than 1,000 customers and its annual contract value is at least $1 million. In addition, it has a revenue renewal rate of 97%, which clearly shows that its customers value its services and are unlikely to switch to competitive solutions.

ServiceNow operates in a highly competitive industry, but it has shown its ability to maintain its position as an integral part of a large number of corporate operations. This helps to create an economic moat for the company, which is an important feature of long-term stability.

Combine this with extraordinary growth, and your retirement portfolio may become a rock star stock. In recent years, ServiceNow’s annual revenue has grown by an average of 33%, and it is expected to grow at least 25% per year in the next two years. Digital transformation is reshaping businesses in various industries, and this will continue to be a growth catalyst for ServiceNow.

2. Square

square (New York Stock Exchange code: SQ) It is a fast-developing financial technology that is attracting the attention of small businesses and consumers. The company initially created mobile payment hardware and software for small business owners to make it easier for them to make credit card payments with customers. Since then, Square has developed a series of tools and services to help its business customers. In 2013, it launched a consumer-oriented mobile application, now called Cash App, which helps users with digital transfers, payments, banking, and investments. It now has more than 30 million active users.

Square plays an important role in the ongoing financial technology transformation. Payments, transfers and investments have become faster and cheaper. Consumers and business owners now expect greater efficiency in financial activities, and Square is one of the emerging providers of these fast services. Square has more than ten years of operating history, and its current market value has reached 115 billion U.S. dollars, and it is no longer considered an upstart. However, given the relatively small share of payments and transfers processed by the company, there is still plenty of room for continued growth in the next few years.

Square’s average annual revenue growth rate is 62%, and analysts expect to continue to maintain a double-digit annual growth rate in the medium term. For some investors, its expensive valuation may be offensive, but if you plan to buy and hold for 20 to 30 years, a forward P/E ratio of 120 is not so daunting. In the long run, the company has enough time to increase its valuation, and any long-term stock investment should assume cyclical fluctuations.

In the long run, the biggest risk is competition. Square’s competitors include fintech peers, such as Paypal, Traditional banking giants, technology giants such as letter with Apple, Hundreds of disruptive start-ups, and increasingly practical blockchain solutions.

Despite the competition, Square has performed well so far and has a strong product suite. This makes it an exciting investment opportunity.

3. Viva

Viva system (NYSE: VEEV) Provide cloud software for pharmaceutical, biotechnology, diagnostics and other life science organizations. It has more than 1,100 customers, including many of the world’s largest pharmaceutical companies. These customers use its products and services to support important functions, including drug development, regulatory compliance, clinical data analysis, and customer relationship management (CRM). Veeva owns 50% to 60% of the life science CRM market.

This dominance in the life sciences market is what makes Veeva a compelling investment in your retirement account.The strength of the company’s niche protects it from a wider range of competitors, such as Sales NetworkAt the same time, its scale protects it from disruptors who focus on its market niche, partly because of the high cost of changing suppliers. This provides Veeva with a competitive moat and pricing power, as evidenced by its nearly 30% operating profit margin and 18% return on invested capital.

Even more encouraging is that the life sciences market is expected to grow rapidly. For example, by 2028, the brand-name pharmaceutical industry is expected to grow at an annual growth rate of nearly 13%, while biotechnology is expected to grow at an annual growth rate of 16% within the same time period. Thanks to the hard work done so far, Veeva will be an indirect beneficiary of these trends.

Like Square, new investors must now pay a premium to buy Veeva stock, but its long-term growth opportunities are sufficient to justify this risk.