Buying quality tech stocks has been a great move for those aiming to achieve double-digit portfolio returns over the long term. In the first five months of 2021, the tech-heavy $NASDAQ 100 Index(.NDX.US)$ was up about 6%. This index includes the 100 largest businesses listed on the NASDAQ, except for businesses from the financial industry. Therefore, today's article will discuss seven tech stocks that deserve your attention in July.

Technology is an important driving force of economic growth for our nation. Innovation and technological developments affect all of us in many ways. For instance, during the pandemic, we saw the effects of digitalization on personal and professional lives. Thus, putting capital in solid businesses in the sector yields considerable returns for long-term portfolios.

Historical data shows high returns from long-term investment in successful tech stocks such as $Apple Inc(AAPL.US)$, $Microsoft Corp(MSFT.US)$, $Amazon.Com Inc(AMZN.US)$ and $Facebook Inc(FB.US)$, as well as many others.

For instance, founded in 1976, Apple went public at $22 per share in December 1980. When we adjust for the five splits that have happened since then, the initial public offering (IPO) share price would be 10 cents. Over the past 40.5 years, AAPL stock's compound annual growth rate (CAGR) is well over 13%.

Put another way, investors who avoid the daily noise in the markets and invest in solid businesses for the long-term are clear winners. With that information, here are seven tech stocks to buy in the coming weeks.

• $Adobe Inc(ADBE.US)$
  

• $ARK Autonomous Technology & Robotics ETF(ARKQ.US)$
  

• $Cognyte Software Ltd(CGNT.US)$
  

• $FactSet Research Systems Inc(FDS.US)$
  

• $Invesco Exchange Traded Fd Tr Ii Nasdaq Next Gen 100 Etf(QQQJ.US)$
  

• $Micron Technology Inc(MU.US)$
  

• $Tesla, Inc.(TSLA.US)$
  

Tech Stocks: Adobe (ADBE)

52-Week range: $416.29 – $607.67

San Jose, California-based Adobe is well known for its software, digital products and services, used by creative artists, students and businesses. Founded in 1982, the group has more than 23,000 employees worldwide.

On June 17, ADBE reported financial results for the second quarter ended June 4. Revenue was $3.84 billion, and grew by 22.6% year-over-year (YOY). Non-GAAP net income was $1.46 billion, an increase of 22.7% YOY. Diluted earnings per share (EPS) was $3.03 on a non-GAAP basis, up 23.7%. Cash flows from operations were a record $1.99 billion, increasing 67.9% YOY.

CEO Shantanu Narayen cited, “Adobe had an outstanding second quarter as Creative Cloud, Document Cloud and Experience Cloud continue to transform work, learn and play in a digital-first world. Our innovative product roadmap and unparalleled leadership in creativity, digital documents and customer experience management position us for continued success in 2021 and beyond.”

ADBE returned over 20% year-to-date (YTD) and hit an all-time high (ATH) in July. Forward price-to-earnings (P/E) and price-to-sales (P/S) ratios are 50.51 and 19.97, respectively. Any potential dip in price could be regarded as an opportunity to buy the shares.

ARK Autonomous Technology & Robotics ETF (ARKQ)

52-Week range: $49.35 – $101.11
Expense ratio: 0.75%, or $75 on a $10,000 investment annually

My next choice is an exchange-traded fund (ETF). The ARK Autonomous Technology & Robotics ETF invests in firms that may develop or manufacture autonomous transportation, automation and robotics, 3D printing, energy (battery) storage, as well as space exploration. The ETF started trading in September 2014.

ARKQ, which is an actively managed fund, typically includes 30 to 50 holdings. The top 10 account for approximately 53% of total net assets of $3.33 billion. Among the leading tech stocks in the fund are Tesla, $Trimble Inc.(TRMB.US)$, $Baidu Inc(BIDU.US)$, $JD.com Inc(JD.US)$ and $Kratos Defense & Security Solutions Inc(KTOS.US)$.

YTD, the fund is up over 8%, and saw a record high earlier in the year in February. Interested investors should consider investing around these levels.

Tech Stocks: Cognyte Software (CGNT)

52-Week range: $22.22 – $33.37

Israel-based Cognyte Software offers security analytics software. This cyber-intelligence platform helps stop cyberattacks and security threats. Its customers, which number over 1,000, are governments as well as businesses. Its market capitalization stands at $1.57 billion.

Cognyte released first-quarter financial metrics on June 22. The results were the first release following Cognyte’s spin-off from $Verint Systems Inc(VRNT.US)$and going public earlier in the year. Total revenue was $115.2 million on non-GAAP basis, up 12.3% YOY. Investors were pleased with the top-line growth and the steady gross margin expansion. Non-GAAP diluted EPS was 20 cents, up 122.2% YOY.

CEO Elad Sharon cited, “During the quarter, we received multiple seven-digit and eight-digit orders and we continue to see strong market demand for security analytics. Following a strong start to the year, we believe we are well positioned for a strong second quarter and full year.”

CGNT’s forward P/E and P/S ratios are 29.50 and 3.41, respectively. Since going public, the shares have lost about 21% of their value. Interested investors could regard the decline as an opportunity to buy into the Cognyte share price. The growing demand for security analytics worldwide should translate into strong revenue growth for the business.

FactSet Research Systems (FDS)

52-Week range: $294.21 – $365.77
Dividend yield: 0.97%

Founded in 1978, the Norwalk, Connecticut-based FactSet Research Systems provides financial information, trading tools and analytical applications to the global investment industry.

FDS announced third-quarter financial results on June 29. Revenues of $399.6 million grew by 6.5% YOY. Adjusted net income was $104.8 million, down 4.8% YOY. Adjusted diluted EPS also fell 4.9%  to $2.72, primarily due to higher operating expenses partially offset by higher revenues. Free cash flow declined 13.1% YOY to $121.66 million.

CEO Phil Snow stated, “Demand for our open content and analytics platform continues to fuel our growth as clients pursue their own digital transformations. We believe that the next generation of digital solutions we are building for the financial community will enable us to grow faster.”

So far this year, FDS has returned about 2.8% and hit a record high in April. Forward P/E and P/S ratios are 29.07 and 8.38, respectively. FactSet is a dividend-paying, robust company with consistent earnings and growth. Long-term investors should consider investing around a price point of $330.

Tech Stocks: Invesco NASDAQ Next Gen 100 ETF (QQQJ)

52-Week range: $24.67 – $35.18
Dividend yield: 0.31%
Expense ratio: 0.15%

Our next discussion also centers around an ETF. The Invesco NASDAQ Next Gen 100 ETF gives access to the 101st- to the 200th-largest non-financial firms listed on the NASDAQ. In other words, the fund invests in businesses that could possibly move up to the NASDAQ 100. It began trading in October 2020.

Information technology (IT) firms have the highest weighting (44.1%) in this fund, followed by healthcare (18.9%), communication services (13.97%), consumer discretionary (13.72%) and others. The top 10 firms comprise almost 20% of net assets of $1.25 billion.

Among the leading names in the roster are $CrowdStrike Holdings Inc(CRWD.US)$, $Roku Inc(ROKU.US)$, $Fortinet Inc(FTNT.US)$, $Old Dominion Freight Line Inc(ODFL.US)$, and $Zscaler Inc(ZS.US)$.

So far in 2021, the fund has returned more than 8%, and saw an ATH in mid-February. The earnings season is upon us. Therefore, many of the names in the fund are likely to be choppy in the coming days. However, any potential drop in price could provide a better opportunity to invest in QQQJ.

Micron Technology (MU)

52-Week range: $42.25 – $96.96

Founded in 1978, Micron Technology is a well-know chip name. It provides high-performance DRAM (dynamic random access memory), NAND and NOR memory and storage products through its Micron® and Crucial® brands. Micron has 17 locations, 13 manufacturing sites and 14 customer labs worldwide.

The company released third-quarter financial results on June 30. Revenue was $7.42 billion, grew 36.4% YOY. Non-GAAP net income of $2.17 billion meant an increase of 130.9%. Diluted EPS came at $1.88, and increased 129.3% YOY. Operating cash flow stood at $3.56 billion, up 76.2%.

CEO Sanjay Mehrotra commented, “Micron set multiple market and product revenue records in our third quarter and achieved the largest sequential earnings improvement in our history. Our industry-leading 1α DRAM and 176-layer NAND now represent a meaningful portion of our production.”

YTD, MU has returned over 4%. The company's forward P/E and P/S ratios are 7.41 and 3.38, respectively. Over the past several quarters, its revenues and margins have been growing at impressive rates. The share price peaked in mid-April. Buy-and-hold investors could regard a further decline toward the $70-level as a potential entry point.

Tech Stocks: Tesla (TSLA) 

52-Week range: $273 – $900.40

Electric vehicle (EV) darling Tesla needs little introduction. Both news about the company and his CEO, Elon Musk, are of significant market interest. Tesla announced Q1 metrics in late April. R<span>evenue was </span>$10.39 billion. Net income of $438 million translated into earnings of 93 cents per share.

Management cited, “In Q1, we achieved our highest ever vehicle production and deliveries. This was in spite of multiple challenges, including seasonality, supply chain instability and the transition to the new Model S and Model X.”

Over the past year, the car manufacturer has been increasing its production capacity, in part helped by the new factory in Shanghai, China. According to the Q2 report on “Vehicle Production & Deliveries,” Tesla produced 206,421 cars and delivered 201,250. Bulls highlighted the numbers were strong enough to justify the frothy valuation levels for the shares.

TSLA stock’s forward P/E and P/S ratios are 161.29 and 20.05, respectively. It is down about 7.8% YTD. Wall Street constantly debates what could be next for the share price. As a growth stock in a disruptive technology industry, TSLA stock will continue to be volatile in the coming weeks, too. Potential investors could regard a decline toward $600 (or even below) as a better opportunity to invest for the long term.