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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) and Netflix (NFLX) to exciting foreign stocks such as Alibaba (BABA), tech-focused growth investors have been rewarded with massive profits recently.
Strong earnings and impressive sales imply that the technology sector’s hot streak could continue throughout 2018—despite recent market-wide volatility. 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:
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 35.7% and revenue growth of 19.6% in fiscal 2018. That earnings expansion is projected to continue at an annualized rate of 13.3% 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%.
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 60 days, we have seen 11 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 153.6% this year and 15.0% 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.
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 market analysis from this author? Make sure to follow @Ryan_McQueeneyon Twitter!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
3 Tech Stocks for Growth Investors to Buy Now
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) and Netflix (NFLX) to exciting foreign stocks such as Alibaba (BABA), tech-focused growth investors have been rewarded with massive profits recently.
Strong earnings and impressive sales imply that the technology sector’s hot streak could continue throughout 2018—despite recent market-wide volatility. 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 35.7% and revenue growth of 19.6% in fiscal 2018. That earnings expansion is projected to continue at an annualized rate of 13.3% 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 60 days, we have seen 11 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 153.6% this year and 15.0% 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 market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>