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5 Tech Stocks Momentum Investors Should Buy Right Now
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The growing influence of technology in our day-to-day life is reminiscent of Albert Einstein’s famous remark, “It has become appallingly obvious that our technology has exceeded our humanity.” The rapid evolution of technology has invaded every facet of our lives from the wrist watch one wears to the cars we drive; it comes down to an all-encompassing age of digitization.
With the advent of connected devices technology, the entwining of human and technology has only become more evident. Artificial Intelligence (AI) is amplifying the human aspect in technological devices a great deal. All the sectors are benefiting from this growing clout of modern technology. From digitizing retail outlets, modernizing payment systems, revolutionizing health care mechanisms and education, we can say the age of technology has well and truly arrived.
Consequently, survival in this data-driven age is all but dependent on technology.
Technology Sector Outperforms
Technology has been one of the most lucrative sectors for investors, year to date. This is evident from the NASDAQ Composite (“IXIC”) and the S&P 500’s (“GSPC”) rally of 14.3% and 7%, respectively, so far this year.
Among sectors, technology continues to shine, with the Technology Select Sector SPDR ETF (“XLK”) registering a return of 15.5% year to date.
The sector is benefiting from increasing demand for cutting-edge technology such as cloud computing, Big Data, Internet of Things (IoT), wearables, AR/VR headsets, drones, self-driving cars and artificial intelligence.
Moreover, escalating demand for sensors and software for autonomous vehicles, advanced driver assisted systems (ADAS), Augmented/Virtual reality devices (AR/VR) and Internet of Things (IoT) are significant catalysts.
Further, rapid development of 5G platform and technology has emerged as the next growth driver for these companies. Moreover, a stabilizing PC-market along with improved IT spending outlook bodes well for the tech sector.
In view of these bullish sentiments, momentum investing can be a winning strategy for those seeking high returns in a short span. This strategy focuses on hot stocks that have been gaining over the past few weeks or months.
What's the Momentum Style Score?
The Momentum style of investing states that what has been going up so far should continue to do so in the near future. This indicates the time to buy a stock that is likely to witness a rise in share price. Nothing is more frustrating than watching a fundamentally sound or inexpensive stock remaining stagnant.
Momentum investors, thus, strongly believe “the trend is your friend,” which implies that stocks which are growing will continue to grow. They make short-term choices among stocks that are scaling up and sell them at the first sign of a downtrend. The basic idea is that once a trend is recognized, it is likely to retain that direction and not move against the flow.
Thus, betting on momentum stocks might help investors earn higher returns in the short term. Nevertheless, investors should remember that this is a speculative strategy and not meant for the faint hearted.
Where to Invest Your Money?
It is here that our Style Score System can come in handy. The Zacks Momentum Style Score indicates when the timing is right to grab a stock and make the most of its momentum. Back-tested results show that stocks with Style Scores of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), handily outperform others. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here is the list of five best tech stocks for momentum investors right now:
Vishay Precision Group, Inc. (VPG - Free Report) is a designer, manufacturer and marketer of resistive foil technology products such as resistive sensors, weighing modules, and control systems for a wide variety of applications. The current fiscal earnings per share (EPS) estimate have been revised upward to $1.94 from $1.66, over the past 30 days. The long-term expected EPS growth rate is 20%. The Zacks Rank #1 stock has a Momentum Style Score of A.
Vishay Precision Group, Inc. Price and EPS Surprise
Garmin Ltd. (GRMN - Free Report) is an original equipment manufacturer of navigation and communication equipment that incorporates global positioning system (GPS)-based technology. The current fiscal EPS estimate has been revised upward to $3.28 from $3.14, over the past 30 days. The long-term expected EPS growth rate is 7.4%. The Zacks Rank #1 stock has a Momentum Style Score of B.
Paylocity Holding Corporation (PCTY) offers cloud-based payroll and human capital management software solutions to medium-sized organizations across the United States. The current fiscal EPS estimate has been revised upward to $1.40 from $1.04, over the past 30 days. The long-term expected EPS growth rate is 22%. The Zacks Rank #2 stock has a Momentum Style Score of A.
Paylocity Holding Corporation Price and EPS Surprise
Qorvo, Inc. (QRVO - Free Report) is a leading provider of core technologies and radio frequency (RF) solutions for mobile, infrastructure and aerospace/defense applications. The current fiscal EPS estimate has been revised upward to $6.20 from $5.93, over the past 30 days. The long-term expected EPS growth rate is 11.9%. The Zacks Rank #2 stock has a Momentum Style Score of A.
Agilent Technologies, Inc. (A - Free Report) is an original equipment manufacturer (OEM) of a broad-based portfolio of test and measurement products serving multiple end markets. The current fiscal earnings per share (EPS) estimate have been revised upward to $2.71 from $2.67, over the past 30 days. The long-term expected EPS growth rate is 10.8%. The Zacks Rank #2 stock has a Momentum Style Score of B.
The above-mentioned stocks have grabbed the limelight with striking performances supported by solid earnings results and strong growth projections. With this in mind, we believe investing in these stocks would yield robust returns for your portfolio in the short term.
The Hottest Tech Mega-Trend of All
Last year, it generated $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 regular investors who make the right trades early.
Image: Bigstock
5 Tech Stocks Momentum Investors Should Buy Right Now
The growing influence of technology in our day-to-day life is reminiscent of Albert Einstein’s famous remark, “It has become appallingly obvious that our technology has exceeded our humanity.” The rapid evolution of technology has invaded every facet of our lives from the wrist watch one wears to the cars we drive; it comes down to an all-encompassing age of digitization.
With the advent of connected devices technology, the entwining of human and technology has only become more evident. Artificial Intelligence (AI) is amplifying the human aspect in technological devices a great deal. All the sectors are benefiting from this growing clout of modern technology. From digitizing retail outlets, modernizing payment systems, revolutionizing health care mechanisms and education, we can say the age of technology has well and truly arrived.
Consequently, survival in this data-driven age is all but dependent on technology.
Technology Sector Outperforms
Technology has been one of the most lucrative sectors for investors, year to date. This is evident from the NASDAQ Composite (“IXIC”) and the S&P 500’s (“GSPC”) rally of 14.3% and 7%, respectively, so far this year.
Among sectors, technology continues to shine, with the Technology Select Sector SPDR ETF (“XLK”) registering a return of 15.5% year to date.
The sector is benefiting from increasing demand for cutting-edge technology such as cloud computing, Big Data, Internet of Things (IoT), wearables, AR/VR headsets, drones, self-driving cars and artificial intelligence.
Moreover, escalating demand for sensors and software for autonomous vehicles, advanced driver assisted systems (ADAS), Augmented/Virtual reality devices (AR/VR) and Internet of Things (IoT) are significant catalysts.
Further, rapid development of 5G platform and technology has emerged as the next growth driver for these companies. Moreover, a stabilizing PC-market along with improved IT spending outlook bodes well for the tech sector.
In view of these bullish sentiments, momentum investing can be a winning strategy for those seeking high returns in a short span. This strategy focuses on hot stocks that have been gaining over the past few weeks or months.
What's the Momentum Style Score?
The Momentum style of investing states that what has been going up so far should continue to do so in the near future. This indicates the time to buy a stock that is likely to witness a rise in share price. Nothing is more frustrating than watching a fundamentally sound or inexpensive stock remaining stagnant.
Momentum investors, thus, strongly believe “the trend is your friend,” which implies that stocks which are growing will continue to grow. They make short-term choices among stocks that are scaling up and sell them at the first sign of a downtrend. The basic idea is that once a trend is recognized, it is likely to retain that direction and not move against the flow.
Thus, betting on momentum stocks might help investors earn higher returns in the short term. Nevertheless, investors should remember that this is a speculative strategy and not meant for the faint hearted.
Where to Invest Your Money?
It is here that our Style Score System can come in handy. The Zacks Momentum Style Score indicates when the timing is right to grab a stock and make the most of its momentum. Back-tested results show that stocks with Style Scores of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy), handily outperform others. You can see the complete list of today’s Zacks #1 Rank stocks here.
Here is the list of five best tech stocks for momentum investors right now:
Vishay Precision Group, Inc. (VPG - Free Report) is a designer, manufacturer and marketer of resistive foil technology products such as resistive sensors, weighing modules, and control systems for a wide variety of applications. The current fiscal earnings per share (EPS) estimate have been revised upward to $1.94 from $1.66, over the past 30 days. The long-term expected EPS growth rate is 20%. The Zacks Rank #1 stock has a Momentum Style Score of A.
Vishay Precision Group, Inc. Price and EPS Surprise
Vishay Precision Group, Inc. Price and EPS Surprise | Vishay Precision Group, Inc. Quote
Garmin Ltd. (GRMN - Free Report) is an original equipment manufacturer of navigation and communication equipment that incorporates global positioning system (GPS)-based technology. The current fiscal EPS estimate has been revised upward to $3.28 from $3.14, over the past 30 days. The long-term expected EPS growth rate is 7.4%. The Zacks Rank #1 stock has a Momentum Style Score of B.
Garmin Ltd. Price and EPS Surprise
Garmin Ltd. Price and EPS Surprise | Garmin Ltd. Quote
Paylocity Holding Corporation (PCTY) offers cloud-based payroll and human capital management software solutions to medium-sized organizations across the United States. The current fiscal EPS estimate has been revised upward to $1.40 from $1.04, over the past 30 days. The long-term expected EPS growth rate is 22%. The Zacks Rank #2 stock has a Momentum Style Score of A.
Paylocity Holding Corporation Price and EPS Surprise
Paylocity Holding Corporation Price and EPS Surprise | Paylocity Holding Corporation Quote
Qorvo, Inc. (QRVO - Free Report) is a leading provider of core technologies and radio frequency (RF) solutions for mobile, infrastructure and aerospace/defense applications. The current fiscal EPS estimate has been revised upward to $6.20 from $5.93, over the past 30 days. The long-term expected EPS growth rate is 11.9%. The Zacks Rank #2 stock has a Momentum Style Score of A.
Qorvo, Inc. Price and EPS Surprise
Qorvo, Inc. Price and EPS Surprise | Qorvo, Inc. Quote
Agilent Technologies, Inc. (A - Free Report) is an original equipment manufacturer (OEM) of a broad-based portfolio of test and measurement products serving multiple end markets. The current fiscal earnings per share (EPS) estimate have been revised upward to $2.71 from $2.67, over the past 30 days. The long-term expected EPS growth rate is 10.8%. The Zacks Rank #2 stock has a Momentum Style Score of B.
Agilent Technologies, Inc. Price and EPS Surprise
Agilent Technologies, Inc. Price and EPS Surprise | Agilent Technologies, Inc. Quote
Looking Ahead
The above-mentioned stocks have grabbed the limelight with striking performances supported by solid earnings results and strong growth projections. With this in mind, we believe investing in these stocks would yield robust returns for your portfolio in the short term.
The Hottest Tech Mega-Trend of All
Last year, it generated $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 regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>