Back to top

Image: Bigstock

5 Dependable Tech Stocks in a Volatile Industry

Read MoreHide Full Article

At Zacks, we understand that with high risk comes high reward, and vice versa. Many investors attempt to invest in industries that provide large growth potential while avoiding major risk with their capital. However, finding safe investments that present legitimate expansion opportunities can be difficult.

The technology industry continues to function as an unpredictable market that still possesses massive growth potential. This unpredictability was underscored by the industry-wide sell-off that started last week and has continued into the present. After sharp gains to start the year, the aforementioned industry facing fresh setbacks as investors realize its unstable characteristics.

Nevertheless, we can use the Zacks Rank, as well as our various financial metrics, to discover technology stocks that provide not only dependability, but also profitability. Indeed, it is probably best to also focus on tech companies that are outperforming their respective industries. This way, we can ensure we’re looking for the strongest stocks in the sometimes-rocky tech sector.

Check out these five technology stocks you should buy now:

1.       ManTech International Corporation

ManTech International is a corporation that produces many informational technology and technical services solutions to the Federal Government entities, primarily the Department of Defense. This stock received an “A” Style Score for Growth and VGM, which means that this company is expected to continue to expand throughout the year. For instance, ManTech’s projected sales growth sits at 4.64%, which compares favorably to the industry average of 2.58%. Further, the company pays a respectable dividend of 1.04%. ManTech International currently sports a Zacks Rank #2 (Buy) thanks to a handful of positive revisions to the company’s full-year and next-year earnings estimates.  

2.       Konami Corporation

Konami Corporation produces and markets game software for home video game systems and gaming machines. Konami currently possesses a beta rating of 0.46, which means that it is theoretically less volatile than the average security on the market.

Nevertheless, Konami received an “A” grade for Growth in our Style Scores system, and it is beating its industry in numerous categories. Konami Corporation’s RoE is currently 11.44%, comparing positively to the industry average of 9.11%. Also, Konami’s projected sales growth stands at 50.70%, which towers over the industry average of 6.54%.This company shows traits of a dependable asset that’s likely to expand in the future regardless of how the technology market acts. Konami Corporation holds a Zacks Rank 1 (Strong Buy).

3.       Oracle Corporation (ORCL - Free Report)

Oracle is one of the world leaders in supplying software for informational management. The company develops and manufactures computer software that helps corporations manage and grow their businesses.

Oracle received an “A” Style Score for Momentum, which means that this stock could continue to ride its recent strength even higher. However, we can expect reliable income from Oracle in the future, as it pays a 1.70% dividend. Also, Oracle sits favorably in the technology industry as it sports a P/E ratio of 17.24 and RoE of 21.03% compared to average of 34.93 and 9.11%, respectively, from its competitors. Finally, Oracle is always looking to expand on the acquisition front, as evidenced by its purchase of NetSuite in 2016. This acquisition has allowed Oracle to greatly improve its cloud capabilities for their small and medium companies segment. Oracle Corporation currently has a Zacks Rank #2 (Buy).

4.       Nova Measuring Instruments Ltd. (NVMI - Free Report)

Nova Measuring creates, produces and sells measurement systems to members of the semiconductor manufacturing industry. Nova’s industry ranks in the top 26% of the Zacks Industry Rank. Further, Nova’s beta is 0.93, which shows that this investment could be slightly less volatile than the average stock on the market. Even though Nova possesses slightly less risk, it is clearly beating its competitors. Nova sports a RoE of 21.37% and projected sales growth of 28.73% compared to the industry averages of 8.96% and 3.68%, respectively. Finally, as of 30 days ago, its full-year EPS estimates have increased by 31.62% to $1.54. Nova Measuring Instruments currently stands at a Zacks Rank #1 (Strong Buy). 

5.       Waters Corporation (WAT - Free Report)

Waters Corporation is a holding company that owns and operates Waters Technologies Corporation, which manufactures and distributes products in the analytical instrument industry. Waters currently belongs to a group of businesses that fall in the top 9% in the Zacks Industry Rank. With a 0.83 beta rating, Waters could be less volatile, yet it outperforms the industry with a 24.30% RoE compared to 8.71% from its competitors. Over the past six months, Waters recorded an average return of 29.9% compared to the industrial average of 27.3%. Finally, the company has had an average positive surprise of 5.8% over the past four quarters of operation. Waters Corporation currently has a Zacks Rank #1 (Strong Buy).

3 Stocks to Ride a 588% Revenue Explosion

At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...

By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Waters Corporation (WAT) - free report >>

Oracle Corporation (ORCL) - free report >>

Nova Ltd. (NVMI) - free report >>