When it comes to successful online stock trading, make sure you identify industries with massive potential, and after you’ve done this you must identify the most successful stocks in the industry.

Information Technology (IT) is a really happening sector, with new innovations and discoveries always altering the landscape and even shaping consumer trends. IT stocks could be quite lucrative options in the stock market too.

The EPS Figure

Earnings per share (EPS) are an important and more relevant means of finding out the most profitable companies in their business sector, and not factors such as highest revenue or largest market capitalization. The profit or net income of a company helps determine the quarterly EPS, and this value can really send a stock price up or down since it is an indication of how much income the company generated with a particular amount of capital.

So if a business has been able to earn a good deal of net income with lesser capital, it is an indication of the efficient management of the company. In the IT (information technology) sector, in particular, it is challenging for companies to attain this, since cost cutting cannot always be possible because of the company’s need to invest in product innovation to stay ahead of the competition.

Here’s a look at two of 2016’s most profitable IT organizations based on their quarterly earnings per share. These are companies whose services have impacted people’s day-to-day lives.

Alphabet and Microsoft

You can’t think of IT without Google or its parent holding company Alphabet Inc ($GOOG) coming to mind. You know that Alphabet has diversified into various services and projects. Apart from the world’s most popular search engine Google and the email service Gmail, you have the Chrome web browser, YouTube, Google Maps, etc as well as other projects such as Calico, Verily Life Sciences, Nest Labs, and so on. In 2016’s first six months, the company secured a $9.08 billion profit which is a 21.99% rise from its profit in the first six months of last year.

Microsoft Corporation ($MSFT) has influenced our daily lives more than we could realize. It offers the Windows operating system plus Office 365, and other apps for desktop and mobile. And let’s not forget the Cortana personal assistant. Microsoft also offers a host of cloud services through its SQL Server, Windows Server, Azure platform for cloud computing, Visual Studio and System Center.

In Q1 and Q2 of the 2016 calendar year, which are actually Q3 and Q4 of the company’s fiscal 2016 since the company’s fiscal year starts on July 1, the profits of the company stood at $3.75 billion and $3.12 billion respectively. The company’s total profit in the first half of calendar year 2016 exceeded $6.87 billion.

Now that you have a clear idea of the topmost stocks in the IT field, it is easier to make the all-important decisions. Helping you in successful online stock trading is TradeZero, an online broker dealer that helps new as well as seasoned traders to trade effectively with its sophisticated trading platforms. Give us a call at +1 954-944-3885, or email support@tradezero.co.


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