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After several months of volatility, tech-heavy indexes are back near their all-time highs, and bullish investors look ready to push things even higher. The world’s tech leaders have dominated Wall Street over the past two years, and now, investors might have a fresh chance to buy these red-hot stocks as they look to establish a new range.
Of course, this year’s volatility has made some investors hesitant, with bearish traders quick to draw similarities between this latest tech rally and the infamous dot-com bubble of the late 90s and early 2000s.
However, unlike the dot-com bubble, there is real earnings and revenue growth fueling this tech rally. In fact, the average P/E ratio of our “Computer and Technology” sector currently sits at 21.8, which compares favorably to the dot-com era’s average that soared into the 100s for a few weeks.
Another interesting trend in today’s tech rally is that, rather than obsessing over the next big thing, investors seem to rewarding tried-and-true brands for their respectable growth. This means that some of the strongest tech stocks are the household names that consumers already know and love.
With that said, check out these three blue chip tech stocks to buy now:
Tech behemoth and iPhone maker Apple has become a backbone stock for many investors in recent years, and the company recently made Wall Street history by reaching the $1 trillion market cap threshold for the first time ever. Plus, the stock is sporting a Zacks Rank #1 (Strong Buy) and has its eyes set on the near and distant future.
Indeed, Apple just introduced three new iPhones in early September, underscoring its new model which places the flagship smartphone at the center of diverse ecosystem of other devices and services, such as the Apple Watch, AirPods, and Apple Music.
And after another great quarter, Apple has seen a tidal wave of positive estimate revisions for future fiscal periods, indicating that analysts are still growing more bullish on the company. Investors also have an opportunity to get in on the cheap, with shares trading at just 19.2x forward earnings right now.
2. Sony Corporation
This Japanese electronics giant has a dominant position with many key products, including audio and video equipment, televisions, displays, semiconductors, game consoles, computers and computer peripherals, and telecommunication equipment. Sony is currently sporting a Zacks Rank #1 (Strong Buy) and looks like a promising tech stock for both the near term and in the coming years.
Sony shares have soared nearly 62% over the past year, but the stock is still trading at 14.5x earnings and 1.0x sales. Meanwhile, management is generating $5.94 in cash per share, which should strengthen the company’s ability to invest in new technologies. Earnings growth is expected to reach nearly 27% fiscal year, and that should be inspired by revenue growth, expansion expected to continue on the top line going forward.
Traditionally speaking, blue chips are going to have a lot more trading history than PayPal, which debuted as an individual stock just over three years ago. But PayPal had already established itself as the top dog in online payments well before its spin-off, and all the stock has done since then is build one of the most consistent and attractive charts on Wall Street.
Now, PayPal is a household name with a market cap over $100 billion. The stock currently sports a Zacks Rank #2 (Buy) and is projected to see a long-term annual earnings growth rate of nearly 18%. Plus, the stock has a PEG of 2.1, so that EPS growth is coming at a decent price right now. PayPal has never missed earnings estimates since it IPO’d and has put together several impressive years.
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 Blue Chip Tech Stocks to Buy Now
After several months of volatility, tech-heavy indexes are back near their all-time highs, and bullish investors look ready to push things even higher. The world’s tech leaders have dominated Wall Street over the past two years, and now, investors might have a fresh chance to buy these red-hot stocks as they look to establish a new range.
Of course, this year’s volatility has made some investors hesitant, with bearish traders quick to draw similarities between this latest tech rally and the infamous dot-com bubble of the late 90s and early 2000s.
However, unlike the dot-com bubble, there is real earnings and revenue growth fueling this tech rally. In fact, the average P/E ratio of our “Computer and Technology” sector currently sits at 21.8, which compares favorably to the dot-com era’s average that soared into the 100s for a few weeks.
Another interesting trend in today’s tech rally is that, rather than obsessing over the next big thing, investors seem to rewarding tried-and-true brands for their respectable growth. This means that some of the strongest tech stocks are the household names that consumers already know and love.
With that said, check out these three blue chip tech stocks to buy now:
1. Apple Inc. (AAPL - Free Report)
Tech behemoth and iPhone maker Apple has become a backbone stock for many investors in recent years, and the company recently made Wall Street history by reaching the $1 trillion market cap threshold for the first time ever. Plus, the stock is sporting a Zacks Rank #1 (Strong Buy) and has its eyes set on the near and distant future.
Indeed, Apple just introduced three new iPhones in early September, underscoring its new model which places the flagship smartphone at the center of diverse ecosystem of other devices and services, such as the Apple Watch, AirPods, and Apple Music.
And after another great quarter, Apple has seen a tidal wave of positive estimate revisions for future fiscal periods, indicating that analysts are still growing more bullish on the company. Investors also have an opportunity to get in on the cheap, with shares trading at just 19.2x forward earnings right now.
2. Sony Corporation
This Japanese electronics giant has a dominant position with many key products, including audio and video equipment, televisions, displays, semiconductors, game consoles, computers and computer peripherals, and telecommunication equipment. Sony is currently sporting a Zacks Rank #1 (Strong Buy) and looks like a promising tech stock for both the near term and in the coming years.
Sony shares have soared nearly 62% over the past year, but the stock is still trading at 14.5x earnings and 1.0x sales. Meanwhile, management is generating $5.94 in cash per share, which should strengthen the company’s ability to invest in new technologies. Earnings growth is expected to reach nearly 27% fiscal year, and that should be inspired by revenue growth, expansion expected to continue on the top line going forward.
3. PayPal Holdings, Inc. (PYPL - Free Report)
Traditionally speaking, blue chips are going to have a lot more trading history than PayPal, which debuted as an individual stock just over three years ago. But PayPal had already established itself as the top dog in online payments well before its spin-off, and all the stock has done since then is build one of the most consistent and attractive charts on Wall Street.
Now, PayPal is a household name with a market cap over $100 billion. The stock currently sports a Zacks Rank #2 (Buy) and is projected to see a long-term annual earnings growth rate of nearly 18%. Plus, the stock has a PEG of 2.1, so that EPS growth is coming at a decent price right now. PayPal has never missed earnings estimates since it IPO’d and has put together several impressive years.
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>>