Finding growth among technology companies is more challenging as inflation has a very ill effect on the sector. This leaves investors searching for opportunities among tech stocks as even big tech companies are experiencing a slowdown.
With that being said, here are two tech stocks that do look poised for a strong 2023.
Ciena (CIEN - Free Report)
Ciena (CIEN - Free Report) is a leader in fiber optics through its optical networking equipment, software, and services. CIEN stock appears poised for a nice rebound in 2023.
Ciena’s earnings are now projected to pop 37% in its fiscal 2023 to $2.61 per share. Fiscal 2024 earnings are expected to climb another 36% to $3.55 per share. Earnings estimates have trended down over the last quarter but this anticipated year-over-year growth is still spectacular.
On the top line, sales are forecasted to jump 15% in FY23 and rise another 8% in FY24 to $4.55 billion. FY24 would represent 27% growth from pre-pandemic levels with 2019 sales at $3.57 billion.
Year to date CIEN is down -34% to underperform the S&P 500’s -18% and the Nasdaq’s -28%. However, over the last five years, Ciena’s stock is still up +138% to blast the broader indexes.
This year’s decline may be a nice buying opportunity with CIEN trading around $50 a share and 35% from its highs. At current levels, CIEN trades at 25.4X earnings. This is a 56% discount from its decade high of 58.3X and close to its median of 23X during this period.
Even better, the average Zacks Price Target suggests 20% upside from current levels.
nVent Electric (NVT - Free Report)
Electrical connection and protection solutions provider nVent Electric (NVT - Free Report) also looks poised for a strong 2023.
Earnings are now expected to jump 18% in 2022 and rise another 7% in fiscal 2023 at $2.48 per share. Earnings estimate revisions for FY22 and FY23 have also risen over the last 60 days. Sales are projected to climb 17% this year and rise 3% in FY23 to $2.97 billion.
NVT stock is up +3% year to date to crush the S&P 500 and the Nasdaq. Plus, over the last five years, NVT’s total return is +95% to also beat the broader indexes.
nVent shares trade at $39 and 17.1X forward earnings. This is on par with the industry average and nicely below its decade high of 19.5X.
nVent offers a solid 1.76% annual dividend yield at $0.70 a share and the average Zacks Price Target still suggests 4% upside from its current levels.
Bottom Line
Considering their current valuation and earnings growth, Ciena and nVent both look poised for a strong 2023. This will be harder to find among the broader economy and in the tech sector making both stocks worth consideration.
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Finding growth among technology companies is more challenging as inflation has a very ill effect on the sector. This leaves investors searching for opportunities among tech stocks as even big tech companies are experiencing a slowdown.
With that being said, here are two tech stocks that do look poised for a strong 2023.
Ciena (CIEN - Free Report)
Ciena (CIEN - Free Report) is a leader in fiber optics through its optical networking equipment, software, and services. CIEN stock appears poised for a nice rebound in 2023.
Ciena’s earnings are now projected to pop 37% in its fiscal 2023 to $2.61 per share. Fiscal 2024 earnings are expected to climb another 36% to $3.55 per share. Earnings estimates have trended down over the last quarter but this anticipated year-over-year growth is still spectacular.
On the top line, sales are forecasted to jump 15% in FY23 and rise another 8% in FY24 to $4.55 billion. FY24 would represent 27% growth from pre-pandemic levels with 2019 sales at $3.57 billion.
Year to date CIEN is down -34% to underperform the S&P 500’s -18% and the Nasdaq’s -28%. However, over the last five years, Ciena’s stock is still up +138% to blast the broader indexes.
This year’s decline may be a nice buying opportunity with CIEN trading around $50 a share and 35% from its highs. At current levels, CIEN trades at 25.4X earnings. This is a 56% discount from its decade high of 58.3X and close to its median of 23X during this period.
Even better, the average Zacks Price Target suggests 20% upside from current levels.
nVent Electric (NVT - Free Report)
Electrical connection and protection solutions provider nVent Electric (NVT - Free Report) also looks poised for a strong 2023.
Earnings are now expected to jump 18% in 2022 and rise another 7% in fiscal 2023 at $2.48 per share. Earnings estimate revisions for FY22 and FY23 have also risen over the last 60 days. Sales are projected to climb 17% this year and rise 3% in FY23 to $2.97 billion.
NVT stock is up +3% year to date to crush the S&P 500 and the Nasdaq. Plus, over the last five years, NVT’s total return is +95% to also beat the broader indexes.
nVent shares trade at $39 and 17.1X forward earnings. This is on par with the industry average and nicely below its decade high of 19.5X.
nVent offers a solid 1.76% annual dividend yield at $0.70 a share and the average Zacks Price Target still suggests 4% upside from its current levels.
Bottom Line
Considering their current valuation and earnings growth, Ciena and nVent both look poised for a strong 2023. This will be harder to find among the broader economy and in the tech sector making both stocks worth consideration.
Free Report Reveals How You Could Profit from the Growing Electric Vehicle Industry
Globally, electric car sales continue their remarkable growth even after breaking records in 2021. High gas prices have fueled his demand, but so has evolving EV comfort, features and technology. So, the fervor for EVs will be around long after gas prices normalize. Not only are manufacturers seeing record-high profits, but producers of EV-related technology are raking in the dough as well. Do you know how to cash in? If not, we have the perfect report for you – and it’s FREE! Today, don't miss your chance to download Zacks' top 5 stocks for the electric vehicle revolution at no cost and with no obligation.
>>Send me my free report on the top 5 EV stocks<<
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