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3 Intriguing Tech Stocks to Buy After Earnings

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The broader technology sector continues to look attractive with the Nasdaq now up +21% this year to more than double the S&P 500’s +10%.

On that note, here are three top-rated Zacks Computer and Technology sector stocks that are standing out after their quarterly reports last week.  

Viasat (VSAT - Free Report) )

Boasting a Zacks Rank #1 (Strong Buy) Viasat stock has continued to soar this year after beating its fiscal fourth-quarter earnings expectations last Wednesday.

Viasat designs, develops, and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment.  

In a very impressive and profitable quarter, earnings of $15.56 per share came in 8% above EPS expectations of $14.41. This was despite a slight miss on the top line, with sales of $666.10 million coming up -2% short of estimates.

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Still, Viasat’s usage in the recent Kennedy Space Center launch on April 30th featuring SpaceX’s Falcon Heavy shuttle has many investors intrigued. This is expecially true with Tesla ((TSLA - Free Report) ) boss Elon Musk running the helm of SpaceX as well. Viasat stated the launch represented a new era as a global communication services company.

Viasat’s earnings estimate revisions have jumped much higher since the company’s Q4 report. Earnings are now forecasted to jump from -$2.87 per share in fiscal 2023 to -$1.41 a share in Viasat’s current FY24. Even better, FY25 earnings are expected to soar into the black at $0.87 per share. On the top line, sales are forecasted to rise 4% in FY24 and jump another 14% in FY25 to $3.16 billion.

Viasat’s earnings potential is starting to become attractive with the company's ViaSat-3 EMEA satellite on pace to launch again this year. It’s noteworthy to mention that Viasat stock is now up +41% year to date to easily top the broader indexes and blast the Wireless Equipment Markets' -4% performance.

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Image Source: Zacks Investment Research (WIX - Free Report) )

Cloud-based developer also looks attractive at the moment with a Zacks Rank #2 (Buy) following the company’s very impressive first-quarter results last Wednesday.

Wix is an Israeli-based company offering solutions that enable businesses, organizations, professionals, and individuals to develop customized websites and application platforms.  

First-quarter EPS of $0.91 crushed expectations of $0.23 per share by 295%. Wix also beat top-line estimates by 1% with Q1 sales at $374.08 million. After a string of impressive earnings beats, Wix stock is starting to look worthy of investors consideration.

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Notably, Wix stock has an “A” Zacks Style Scores grade for Growth. Fiscal 2023 earnings are projected to soar to $1.64 per share compared to an adjusted loss of -$0.17 in 2022. More impressive, FY24 earnings are forecasted to climb another 49% at $2.45 per share. Sales are expected to rise 10% this year and jump another 11% in FY24 to $1.71 billion.

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Synopsys (SNPS - Free Report) )

Rounding out this tech list, Synopsys stock sports a Zacks Rank #2 ( Buy) and posted strong results for its fiscal second-quarter last Wednesday.  

Synopsys is a vendor of electronic design automation (EDA) software for the semiconductor and electronics industries. Earnings of $2.54 per share topped Q2 EPS estimates by 3% with sales of $1.39 billion beating expectations by 1%.

Plus, Synopsys has now beaten earnings expectations for 18 consecutive quarters and topped sales estimates for 29 straight quarters.

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Synopsys’ consistency is very attractive to investors especially as the operating environment begins to stabilize for its semiconductor clients. Annual earnings are now anticipated to climb 19% this year and jump another 14% in FY24 at $12.12 per share.

Steady top-line growth is expected as well with sales projected to rise 14% in FY23 and pop another 11% in FY24 to $6.43 billion. More impressive, fiscal 2024 sales would represent 91% growth from pre-pandemic levels with 2019 sales at $3.36 billion.

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There could still be more upside for these tech stocks following their strong quarterly results and now appears to be a good time to buy. With the Nasdaq continuing to rise, Viasat, Wix, and Synopsys are three unique companies that stand out as sentiment toward the broader technology sector grows.

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