Investors Can't Get Enough of These 3 Tech Stocks in 2023


This morning, investors were finally served the main course of the week, February’s Consumer Price Index (CPI) data.

As we’ve all become aware, CPI releases have become pivotal for markets, especially following a historical year-long tightening campaign aimed at cooling an overheated economy.

Core CPI (which doesn’t include food and energy prices) Y/Y came in at 5.5%, meeting expectations and reflecting the smallest 12-month increase since December 2021.

Further, the headline CPI came in at 6% Y/Y, again meeting expectations and representing the smallest Y/Y climb since September 2021.

All in all, good news for the Fed, with stocks finding buyers early in the trading session following the release.

However, several large-cap tech stocks, including Meta Platforms (META - Free Report) , Salesforce (CRM - Free Report) , and Analog Devices (ADI - Free Report) , have had no issue finding buyers all year long, outperforming the broader market by notable margins. This is illustrated in the chart below.

For those interested in riding momentum, let’s take a closer look at each one.

Meta Platforms

The tech titan META presently sports a Zacks Rank #2 (Buy), with earnings estimates increasing across all timeframes.

The market liked META’s latest quarterly report in early February, with the tech giant announcing a sizable $40 billion share buyback program.

The company exceeded the Zacks Consensus EPS Estimate by more than 40% and posted sales 3% ahead of expectations, sending shares flying. The green arrow in the chart below illustrates this.

However, what the market really appreciated was news of cost-cutting measures; the company expects full-year 2023 total expenses in a range of $89 billion – $95 billion, down from prior views of $94 billion – $100 billion.


Salesforce is the leading provider of on-demand Customer Relationship Management (CRM - Free Report) software, enabling organizations to better manage critical operations. CRM presently sports the highly-coveted Zacks Rank #1 (Strong Buy).

Like META, Salesforce posted notably strong results in its latest quarterly release, beating bottom line expectations by more than 25% and reporting revenue 5% above expectations. Below is a chart illustrating the company’s revenue on a quarterly basis.

Investors cheered on the results, with CRM shares finding plenty of buyers post-earnings.

Analog Devices

Analog Devices (ADI - Free Report) is an original equipment manufacturer of semiconductor devices, specifically analog, mixed-signal, and digital signal-processing integrated circuits. Analysts have taken a bullish stance on the company’s earnings outlook.

ADI shares trade at a nice discount relative to historic levels, with the current 17.2X forward earnings multiple sitting well beneath the 21.1X five-year median and highs of 23.5X in 2022.

In addition, ADI shares provide exposure to technology paired with an income stream; ADI’s annual dividend presently yields 1.9%, nicely above the Zacks Computer and Technology sector average.

Bottom Line

While buyers step up following the release of CPI data, all three stocks above – Meta Platforms (META - Free Report) , Salesforce (CRM - Free Report) , and Analog Devices (ADI - Free Report) – have found many buyers all year long, widely outperforming the general market.

For those interested in targeting stocks displaying relative strength paired with rising earnings estimate revisions, all three deserve consideration.

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