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3 Top-Ranked Technology Stocks Investors Can Buy Now
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The bear market of 2022 thrashed investors and hit the technology sector especially hard. Many of the high-flyers from the year prior were the ones that got hit the worst. And while some of these small to mid-cap technology stocks have staged a comeback this year along with the mega cap tech stocks, there are others that are still near their lows.
In this article I will cover three smid-cap tech stocks. The first one is MongoDB (MDB - Free Report) , which is already having an exceptional year with tremendous momentum on its side. The other two, Twilio (TWLO - Free Report) and StoneCo (STNE - Free Report) are still bouncing along near their lows, attracting few buyers. However, this is an opportunity for discerning investors.
Additionally, each of these three stocks currently boasts Zacks Rank #1 (Strong Buy) ratings, indicating upward trending earnings revisions and dramatically improving their odds of near-term strength.
Image Source: Zacks Investment Research
MongoDB
MongoDB (MDB - Free Report) is a leading, open-source, document-oriented database management system designed for modern applications. It provides a flexible and scalable platform for storing, retrieving, and managing vast amounts of data in a variety of formats.
With its ability to handle complex data structures and high-performance capabilities, MongoDB has gained popularity among developers and organizations seeking efficient data storage and real-time analytics solutions. Its features, including automatic scaling, data replication, and robust query capabilities, make MongoDB a versatile choice for building modern, data-driven applications.
Reflecting its top Zacks Rank, MDB has seen some huge revisions higher to its earnings estimates. Current quarter earnings estimates have been upgraded by a whopping 200% and are projected to climb 295% YoY to $0.45 per share. FY23 earnings estimates have been boosted by 47% and are forecast to grow 86% YoY to $1.51 per share.
Sales are also expected to grow at a rapid pace. Current quarter sales are estimated to climb 28% YoY while FY23 sales are expected to increase by 20% YoY.
Image Source: Zacks Investment Research
With bullish catalysts on the horizon and momentum in its favor, MongoDB has been building out a compelling technical chart setup. After forming a base over the last year and gapping massively higher, the price has begun to carve out a tight bull flag.
If MDB stock can trade above the $414 level on above average volume it should begin another bull run. Alternatively, if the price can’t hold above the $392 level, the setup is invalid, and investors may want to wait for another trade.
Image Source: TradingView
Twilio
Twilio (TWLO - Free Report) is a prominent cloud communications platform that enables developers to integrate various communication channels, such as voice, messaging, and video, into their applications. By providing a set of APIs and tools, Twilio simplifies the process of incorporating real-time communication capabilities into software applications, empowering businesses to enhance customer engagement and improve operational efficiency.
With its scalable and reliable infrastructure, Twilio has gained widespread adoption across industries, serving as a vital component for building innovative and personalized customer experiences through seamless communication.
Twilio as well has seen some huge moves higher in its earnings estimates since the beginning of the year as you can see in the chart below. However, there seems to be a lag between the price of the stock and these earnings revisions. That lag is a trader’s opportunity as eventually Wall St will realize how undervalued TWLO is.
Current quarter earnings are projected to climb 364% YoY, while FY23 earnings are expected to grow 1,020% YoY.
Image Source: Zacks Investment Research
TWLO is now trading at a one year forward sales multiple of just 3x, which is below the broad market average of 4x, and well below its five-year median of 14x. While Twilio certainly suffered from its excessively high valuation at one point the opposite is now true, and the current valuation is quite compelling.
Image Source: Zacks Investment Research
StoneCo
StoneCo (STNE - Free Report) is a leading financial technology company based in Brazil that offers a range of digital payment solutions and financial services to businesses of all sizes. Through its robust platform, StoneCo provides merchants with a seamless and secure way to accept various payment methods, including credit and debit cards.
Additionally, StoneCo offers value-added services such as financial management tools, loans, and working capital solutions. With its customer-centric approach and technological expertise, StoneCo has established itself as a key player in the Brazilian fintech landscape, empowering businesses with efficient and modern financial solutions.
STNE has also seen some nice earnings estimate upgrades, demonstrating its top Zacks Rank. Next quarter earnings estimates have been revised higher by 19% and are projected to grow 90% YoY to $0.19 per share. FY23 earnings estimates have been upgraded by 16.4% and are forecast to grow 115% YoY to $0.71 per share.
Image Source: Zacks Investment Research
Like Twilio, StoneCo suffers from a beaten down sentiment. But again, if you are comfortable as a contrarian investor, buying what others are selling, you may have found the right stock for you.
STNE is trading at a one year forward sales multiple of just 2x, which is below the broad market average of 4x, and well below its five-year median of 14.1x.
Image Source: Zacks Investment Research
Bottom Line
Whether you want momentum tech stocks or deep value tech stocks, one of these three should fit into your portfolio. As always, while stock picking is fun, investors should always be laser focused on risk management, knowing exactly how much they may lose on any individual trade and their portfolio as a whole.
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3 Top-Ranked Technology Stocks Investors Can Buy Now
The bear market of 2022 thrashed investors and hit the technology sector especially hard. Many of the high-flyers from the year prior were the ones that got hit the worst. And while some of these small to mid-cap technology stocks have staged a comeback this year along with the mega cap tech stocks, there are others that are still near their lows.
In this article I will cover three smid-cap tech stocks. The first one is MongoDB (MDB - Free Report) , which is already having an exceptional year with tremendous momentum on its side. The other two, Twilio (TWLO - Free Report) and StoneCo (STNE - Free Report) are still bouncing along near their lows, attracting few buyers. However, this is an opportunity for discerning investors.
Additionally, each of these three stocks currently boasts Zacks Rank #1 (Strong Buy) ratings, indicating upward trending earnings revisions and dramatically improving their odds of near-term strength.
Image Source: Zacks Investment Research
MongoDB
MongoDB (MDB - Free Report) is a leading, open-source, document-oriented database management system designed for modern applications. It provides a flexible and scalable platform for storing, retrieving, and managing vast amounts of data in a variety of formats.
With its ability to handle complex data structures and high-performance capabilities, MongoDB has gained popularity among developers and organizations seeking efficient data storage and real-time analytics solutions. Its features, including automatic scaling, data replication, and robust query capabilities, make MongoDB a versatile choice for building modern, data-driven applications.
Reflecting its top Zacks Rank, MDB has seen some huge revisions higher to its earnings estimates. Current quarter earnings estimates have been upgraded by a whopping 200% and are projected to climb 295% YoY to $0.45 per share. FY23 earnings estimates have been boosted by 47% and are forecast to grow 86% YoY to $1.51 per share.
Sales are also expected to grow at a rapid pace. Current quarter sales are estimated to climb 28% YoY while FY23 sales are expected to increase by 20% YoY.
Image Source: Zacks Investment Research
With bullish catalysts on the horizon and momentum in its favor, MongoDB has been building out a compelling technical chart setup. After forming a base over the last year and gapping massively higher, the price has begun to carve out a tight bull flag.
If MDB stock can trade above the $414 level on above average volume it should begin another bull run. Alternatively, if the price can’t hold above the $392 level, the setup is invalid, and investors may want to wait for another trade.
Image Source: TradingView
Twilio
Twilio (TWLO - Free Report) is a prominent cloud communications platform that enables developers to integrate various communication channels, such as voice, messaging, and video, into their applications. By providing a set of APIs and tools, Twilio simplifies the process of incorporating real-time communication capabilities into software applications, empowering businesses to enhance customer engagement and improve operational efficiency.
With its scalable and reliable infrastructure, Twilio has gained widespread adoption across industries, serving as a vital component for building innovative and personalized customer experiences through seamless communication.
Twilio as well has seen some huge moves higher in its earnings estimates since the beginning of the year as you can see in the chart below. However, there seems to be a lag between the price of the stock and these earnings revisions. That lag is a trader’s opportunity as eventually Wall St will realize how undervalued TWLO is.
Current quarter earnings are projected to climb 364% YoY, while FY23 earnings are expected to grow 1,020% YoY.
Image Source: Zacks Investment Research
TWLO is now trading at a one year forward sales multiple of just 3x, which is below the broad market average of 4x, and well below its five-year median of 14x. While Twilio certainly suffered from its excessively high valuation at one point the opposite is now true, and the current valuation is quite compelling.
Image Source: Zacks Investment Research
StoneCo
StoneCo (STNE - Free Report) is a leading financial technology company based in Brazil that offers a range of digital payment solutions and financial services to businesses of all sizes. Through its robust platform, StoneCo provides merchants with a seamless and secure way to accept various payment methods, including credit and debit cards.
Additionally, StoneCo offers value-added services such as financial management tools, loans, and working capital solutions. With its customer-centric approach and technological expertise, StoneCo has established itself as a key player in the Brazilian fintech landscape, empowering businesses with efficient and modern financial solutions.
STNE has also seen some nice earnings estimate upgrades, demonstrating its top Zacks Rank. Next quarter earnings estimates have been revised higher by 19% and are projected to grow 90% YoY to $0.19 per share. FY23 earnings estimates have been upgraded by 16.4% and are forecast to grow 115% YoY to $0.71 per share.
Image Source: Zacks Investment Research
Like Twilio, StoneCo suffers from a beaten down sentiment. But again, if you are comfortable as a contrarian investor, buying what others are selling, you may have found the right stock for you.
STNE is trading at a one year forward sales multiple of just 2x, which is below the broad market average of 4x, and well below its five-year median of 14.1x.
Image Source: Zacks Investment Research
Bottom Line
Whether you want momentum tech stocks or deep value tech stocks, one of these three should fit into your portfolio. As always, while stock picking is fun, investors should always be laser focused on risk management, knowing exactly how much they may lose on any individual trade and their portfolio as a whole.