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3 Tech Stocks for Growth Investors to Buy Now

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By their very nature, growth investors are primarily focused on finding companies whose earnings and revenue are expected grow at a rate that outpaces the market. This investment strategy comes with its fair share of risks, but it also brings the exciting possibility of outsized returns—an end goal that every investor desires.

Over the past several years, Wall Street’s most exciting growth stocks have emerged from the technology sector. From industry innovators like Amazon (AMZN - Free Report) and Netflix (NFLX - Free Report) to exciting foreign stocks such as Alibaba (BABA - Free Report) , tech-focused growth investors have been rewarded with massive profits recently.

Strong earnings and impressive sales imply that the technology sector’s hot streak should continue throughout 2018. That means that growth investors searching for the next great market-beating stock might want to keep their focus on tech companies.

Luckily, we can pair the proven Zacks Rank with our innovative Style Scores system, which includes a “Growth” category, to find strong growth tech stocks. Investors should note that our Growth category values earnings and sales growth, as well as improvements to a company’s financial statements—including strong cash flows and great return on equity.

With all of this said, check out these three tech stocks for growth investors to consider now:

1.       Applied Materials, Inc. (AMAT - Free Report)

Applied Materials is one of the world’s largest suppliers of fabrication equipment to semiconductor, LCD, and solar PV cell manufacturers. The company also provides equipment used in the production of coatings for flexible electronics and services related to manufacturing processes and installation.

Based on our latest consensus estimates, we expect Applied Materials to see earnings growth of 35.1% and revenue growth of 19.6% in fiscal 2018. That earnings expansion is projected to continue at an annualized rate of 12.0% over the next three to five years.

AMAT is sporting a Zacks Rank #2 (Buy) and an “A” grade for Growth. The company is generating cash flow growth of 68.1% right now, and its RoE is a better-than-industry-average 45.2%.

 

2.       DXC Technology Company (DXC - Free Report)

DXC Technology is a leading end-to-end IT services and solutions company. It services include analytics, applications, business processes, cloud computing, consulting, enterprise and cloud applications, security, and more.

DXC immediately sticks out because of its strong estimate revision activity. Within the past 30 days, we have seen 10 revisions with 100% agreement to the upside for the company’s full-year EPS estimates. DXC is now expected to see its full-year earnings growth hit 152.6% this year and 15.4% next year.

DXC is holding a Zacks Rank #2 (Buy) and an “A” grade for Growth. The firm is projected to improve its bottom line at an annualized rate of 10.5% over the next three to five years.

 

3.       Unisys Corporation (UIS - Free Report)

Unisys is a worldwide technology services and solutions company. Unisys consultants apply Unisys expertise in consulting, systems integration, outsourcing, infrastructure, and server technology to help their clients achieve secure business operations.

Unisys is projected to see its bottom line improve by 95.3% in the current fiscal year. The stock is currently sporting a Zacks Rank #1 (Strong Buy) and an “A” grade for Growth. UIS is also sporting an “A” grade in the Value category.

 

Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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