The Fed’s tightening cycle has punished technology stocks in 2022. For example, the Zacks Computer and Technology sector is down more than 30% year-to-date, widely underperforming compared to the S&P 500.
Still, while many of these stocks have faced adverse price action, a few of them carry solid growth profiles, including Adobe (ADBE - Free Report) , Broadcom (AVGO - Free Report) , and Jabil (JBL - Free Report) .
Below is a chart illustrating the performance of all three stocks in 2022, with the S&P 500 blended in as a benchmark.
Let’s take a closer look at each one.
Adobe
Adobe is one of the biggest software companies in the world, generating the bulk of its revenue via licensing fees from its customers.
It’s hard to ignore ADBE’s growth trajectory; the company’s bottom line is forecasted to climb 11% in its current fiscal year (FY23) and a further 15% in FY24.
The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 9% in FY23 and 11.4% in FY24.
ADBE has a stellar earnings track record, exceeding earnings and revenue expectations in ten consecutive quarters. Just in its latest release, the company registered a 3% bottom line beat and reported sales marginally above expectations.
Broadcom
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices.
Like ADBE, Broadcom carries a solid growth profile, with earnings forecasted to climb 7.4% in its current fiscal year (FY23) on the back of Y/Y revenue growth of 5%. And in FY24, earnings and revenue are estimated to climb 7.5% and 4.9%, respectively.
Additionally, Broadcom’s dividend metrics would excite any income-focused investor looking for tech exposure – AVGO’s annual dividend currently yields a solid 2.9% paired with a sizable 26.3% five-year annualized growth rate.
Jabil Inc.
Jabil provides electronic manufacturing services and solutions to its customers. JBL has seen its near-term earnings outlook tick higher over the last several months, pushing the stock into a Zacks Rank #1 (Strong Buy).
Jabil is estimated to deliver Y/Y earnings growth of nearly 9% in its current fiscal year (FY23), with revenue forecasted to climb by 3%. Looking ahead to FY24, estimates suggest Y/Y improvements of 6.3% in earnings and 2.9% in revenue.
Bottom Line
Tech stocks have gotten a haircut in 2022, with a hawkish Fed spoiling all the fun.
Still, several tech stocks carry favorable growth profiles, owing to their ability to navigate through rough waters.
All three stocks above – Adobe (ADBE - Free Report) , Broadcom (AVGO - Free Report) , and Jabil (JBL - Free Report) – carry favorable growth outlooks, expected to grow both the top and bottom lines in their current fiscal years and next.
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The Fed’s tightening cycle has punished technology stocks in 2022. For example, the Zacks Computer and Technology sector is down more than 30% year-to-date, widely underperforming compared to the S&P 500.
Still, while many of these stocks have faced adverse price action, a few of them carry solid growth profiles, including Adobe (ADBE - Free Report) , Broadcom (AVGO - Free Report) , and Jabil (JBL - Free Report) .
Below is a chart illustrating the performance of all three stocks in 2022, with the S&P 500 blended in as a benchmark.
Let’s take a closer look at each one.
Adobe
Adobe is one of the biggest software companies in the world, generating the bulk of its revenue via licensing fees from its customers.
It’s hard to ignore ADBE’s growth trajectory; the company’s bottom line is forecasted to climb 11% in its current fiscal year (FY23) and a further 15% in FY24.
The projected earnings growth comes on top of forecasted Y/Y revenue upticks of 9% in FY23 and 11.4% in FY24.
ADBE has a stellar earnings track record, exceeding earnings and revenue expectations in ten consecutive quarters. Just in its latest release, the company registered a 3% bottom line beat and reported sales marginally above expectations.
Broadcom
Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices.
Like ADBE, Broadcom carries a solid growth profile, with earnings forecasted to climb 7.4% in its current fiscal year (FY23) on the back of Y/Y revenue growth of 5%. And in FY24, earnings and revenue are estimated to climb 7.5% and 4.9%, respectively.
Additionally, Broadcom’s dividend metrics would excite any income-focused investor looking for tech exposure – AVGO’s annual dividend currently yields a solid 2.9% paired with a sizable 26.3% five-year annualized growth rate.
Jabil Inc.
Jabil provides electronic manufacturing services and solutions to its customers. JBL has seen its near-term earnings outlook tick higher over the last several months, pushing the stock into a Zacks Rank #1 (Strong Buy).
Jabil is estimated to deliver Y/Y earnings growth of nearly 9% in its current fiscal year (FY23), with revenue forecasted to climb by 3%. Looking ahead to FY24, estimates suggest Y/Y improvements of 6.3% in earnings and 2.9% in revenue.
Bottom Line
Tech stocks have gotten a haircut in 2022, with a hawkish Fed spoiling all the fun.
Still, several tech stocks carry favorable growth profiles, owing to their ability to navigate through rough waters.
All three stocks above – Adobe (ADBE - Free Report) , Broadcom (AVGO - Free Report) , and Jabil (JBL - Free Report) – carry favorable growth outlooks, expected to grow both the top and bottom lines in their current fiscal years and next.
Just Released: Zacks Top 10 Stocks for 2024
Hurry – you can still get in early on our 10 top tickers for 2024. Hand-picked by Zacks Director of Research, Sheraz Mian, this portfolio has been stunningly and consistently successful. From inception in 2012 through November, 2023, the Zacks Top 10 Stocks gained +974.1%, nearly TRIPLING the S&P 500’s +340.1%. Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2024. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
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