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4 Growth-Rated Tech Stocks to Buy Amid High Market Volatility
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The U.S. equity market has been witnessing high volatility for the past few months, thanks to multiple factors including the pandemic, increasing crude oil prices, rising inflationary concerns and a hawkish policy adopted by the central bank.
Additionally, escalating tensions between Russia and Ukraine have further enhanced this volatility over the past week. Economic and financial sanctions imposed by the United States and European Union to punish Russia continue to result in market turmoil.
Though the sanctions imposed on Russia are anticipated to have a nominal direct impact on U.S.-based companies due to their minimal exposure in the country, it is likely to badly hurt European and Asian countries. This could further derail overall global economic recovery.
The aforementioned global macroeconomic and geopolitical uncertainties are likely to continue weighing on investor sentiments, which could result in more volatility in the U.S. equity market. Year to date, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have plunged 6.7%, 12.1% and 8%, respectively.
In such a scenario, growth-rated stocks, such as Advanced Micro Devices (AMD - Free Report) , Micron Technology (MU - Free Report) , Zscaler (ZS - Free Report) and Stratasys Limited (SSYS - Free Report) can boost one’s portfolio.
Countering Market Volatility With Growth Stocks
Amid the financial instability, it is prudent to pick solid growth companies as these are financially stable, accruing profits in established markets. These stocks, with their solid fundamentals, allow investors to hedge their funds from any economic downturn.
Here, we have zeroed in on four tech stocks that could enrich your portfolio in 2022 and beyond.
Apart from having solid fundamentals, the long-term earnings growth rate of these stocks is more than 20%. These stocks also have the favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy).
Per Zacks’ proprietary methodology, stocks with such a favorable combination offer solid investment opportunities.
Our Picks
Advanced Micro Devices is riding on the robust performance delivered by the Computing and Graphics, and Enterprise Embedded and Semi-Custom segments. AMD is benefiting from the growing adoption of Ryzen and EPYC server processors.
The increasing proliferation of artificial intelligence and machine learning in the cloud, gaming and supercomputing domains remains a tailwind. The growing clout of 7 nanometer (nm) products in the data center vertical, driven by work-from-home and online learning trends, is likely to continue acting as another key catalyst.
The company, which is a well-known provider of microprocessors, servers and embedded processors, and semi-custom System-on-Chip products and technology for game consoles, is expected to gain further momentum in its data center business on the back of its Xilinx acquisition.
The Zacks Consensus Estimate for Advanced Micro Devices’ 2022 earnings has improved 70 cents to $3.99 per share over the past 30 days, indicating a year-over-year increase of 43%. Revenues are estimated to increase 30.6% to $21.46 billion.
Micron Technology is one of the leading worldwide providers of semiconductor memory solutions. The company is benefiting from strong memory-chip demand from PC and mobile phone manufacturers.
Micron is witnessing growing demand for memory chips from cloud-computing providers and acceleration in 5G cellular network adoptions. The rising mix of high-value solutions, enhancement in customer engagement and improvement in cost structure are growth drivers as well. Further, 5G adoption beyond mobile is likely to spur demand for memory and storage, particularly in Internet of Things (IoT) devices and wireless infrastructure.
The long-term earnings growth rate for the stock is pegged at 24.2%. MU currently has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for Micron’s fiscal 2022 earnings has improved 4 cents to $8.95 per share over the past 30 days, implying a year-over-year increase of 47.7%. Revenues are estimated to grow 15.6% to $32.03 billion.
Zscaler is one of the world’s leading providers of cloud-based security solutions. The company offers a full range of enterprise network security services including web security, internet security, antivirus, vulnerability management, firewalls, and control over user activity in mobile, cloud computing, and Internet of things environments.
Zscaler is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches. Increasing demand for privileged access security on digital transformation and cloud migration strategies is a key growth driver. Zscaler’s portfolio strength boosts its competitive edge and helps add users.
Moreover, a strong presence across verticals, such as banking, insurance, healthcare, public sector, pharmaceuticals, telecommunications services and education, is safeguarding Zscaler from the pandemic’s negative impact. Also, the recent acquisitions, Smokescreen and Trustdome, are expected to enhance its portfolio.
The long-term earnings growth rate for the stock is pegged at 39.1%. ZS currently has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for Zscaler’s fiscal 2022 earnings has improved a penny to 53 per share over the past seven days, reflecting a year-over-year increase of 1.9%. Revenues are estimated to grow 55.9% to $1.05 billion.
Stratasys is a manufacturer of in-office rapid prototyping (RP) and manufacturing systems and 3D printers for automotive, aerospace, defense, electronic, medical, education and consumer product original equipment manufacturers (OEMs).
The company is benefiting from an increase in demand for 3D-printed medical equipment. Moreover, Stratasys’ cost-control initiatives are expected to reflect positively on expenses in the forthcoming quarters. The firm’s focus on launching products and entering into partnerships is a key driver.
In the last-reported quarter, Stratasys registered growth across key metrics, including revenues, earnings and cash flows. This shows that the company is rapidly recovering from the pandemic-induced chaos.
Stratasys currently carries a Zacks Rank #2 and has a Growth Score of B. The long-term earnings growth rate for the stock is pegged at 36%.
The Zacks Consensus Estimate for Stratasys’ 2022 earnings has increased 11 cents to 17 cents per share over the past seven days, reflecting a robust improvement from the year-ago quarter’s loss of 7 cents. Revenues are estimated to increase 13.1% to $686.9 million.
Image: Bigstock
4 Growth-Rated Tech Stocks to Buy Amid High Market Volatility
The U.S. equity market has been witnessing high volatility for the past few months, thanks to multiple factors including the pandemic, increasing crude oil prices, rising inflationary concerns and a hawkish policy adopted by the central bank.
Additionally, escalating tensions between Russia and Ukraine have further enhanced this volatility over the past week. Economic and financial sanctions imposed by the United States and European Union to punish Russia continue to result in market turmoil.
Though the sanctions imposed on Russia are anticipated to have a nominal direct impact on U.S.-based companies due to their minimal exposure in the country, it is likely to badly hurt European and Asian countries. This could further derail overall global economic recovery.
The aforementioned global macroeconomic and geopolitical uncertainties are likely to continue weighing on investor sentiments, which could result in more volatility in the U.S. equity market. Year to date, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have plunged 6.7%, 12.1% and 8%, respectively.
In such a scenario, growth-rated stocks, such as Advanced Micro Devices (AMD - Free Report) , Micron Technology (MU - Free Report) , Zscaler (ZS - Free Report) and Stratasys Limited (SSYS - Free Report) can boost one’s portfolio.
Countering Market Volatility With Growth Stocks
Amid the financial instability, it is prudent to pick solid growth companies as these are financially stable, accruing profits in established markets. These stocks, with their solid fundamentals, allow investors to hedge their funds from any economic downturn.
Here, we have zeroed in on four tech stocks that could enrich your portfolio in 2022 and beyond.
Apart from having solid fundamentals, the long-term earnings growth rate of these stocks is more than 20%. These stocks also have the favorable combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or #2 (Buy).
Per Zacks’ proprietary methodology, stocks with such a favorable combination offer solid investment opportunities.
Our Picks
Advanced Micro Devices is riding on the robust performance delivered by the Computing and Graphics, and Enterprise Embedded and Semi-Custom segments. AMD is benefiting from the growing adoption of Ryzen and EPYC server processors.
The increasing proliferation of artificial intelligence and machine learning in the cloud, gaming and supercomputing domains remains a tailwind. The growing clout of 7 nanometer (nm) products in the data center vertical, driven by work-from-home and online learning trends, is likely to continue acting as another key catalyst.
The company, which is a well-known provider of microprocessors, servers and embedded processors, and semi-custom System-on-Chip products and technology for game consoles, is expected to gain further momentum in its data center business on the back of its Xilinx acquisition.
AMD currently sports a Zacks Rank #1 and a Growth Score of B. The long-term earnings growth rate for the stock is pegged at 29.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Advanced Micro Devices’ 2022 earnings has improved 70 cents to $3.99 per share over the past 30 days, indicating a year-over-year increase of 43%. Revenues are estimated to increase 30.6% to $21.46 billion.
Advanced Micro Devices, Inc. Price and Consensus
Advanced Micro Devices, Inc. price-consensus-chart | Advanced Micro Devices, Inc. Quote
Micron Technology is one of the leading worldwide providers of semiconductor memory solutions. The company is benefiting from strong memory-chip demand from PC and mobile phone manufacturers.
Micron is witnessing growing demand for memory chips from cloud-computing providers and acceleration in 5G cellular network adoptions. The rising mix of high-value solutions, enhancement in customer engagement and improvement in cost structure are growth drivers as well. Further, 5G adoption beyond mobile is likely to spur demand for memory and storage, particularly in Internet of Things (IoT) devices and wireless infrastructure.
The long-term earnings growth rate for the stock is pegged at 24.2%. MU currently has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for Micron’s fiscal 2022 earnings has improved 4 cents to $8.95 per share over the past 30 days, implying a year-over-year increase of 47.7%. Revenues are estimated to grow 15.6% to $32.03 billion.
Micron Technology, Inc. Price and Consensus
Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote
Zscaler is one of the world’s leading providers of cloud-based security solutions. The company offers a full range of enterprise network security services including web security, internet security, antivirus, vulnerability management, firewalls, and control over user activity in mobile, cloud computing, and Internet of things environments.
Zscaler is benefiting from the rising demand for cyber-security solutions owing to the slew of data breaches. Increasing demand for privileged access security on digital transformation and cloud migration strategies is a key growth driver. Zscaler’s portfolio strength boosts its competitive edge and helps add users.
Moreover, a strong presence across verticals, such as banking, insurance, healthcare, public sector, pharmaceuticals, telecommunications services and education, is safeguarding Zscaler from the pandemic’s negative impact. Also, the recent acquisitions, Smokescreen and Trustdome, are expected to enhance its portfolio.
The long-term earnings growth rate for the stock is pegged at 39.1%. ZS currently has a Zacks Rank #2 and a Growth Score of A.
The Zacks Consensus Estimate for Zscaler’s fiscal 2022 earnings has improved a penny to 53 per share over the past seven days, reflecting a year-over-year increase of 1.9%. Revenues are estimated to grow 55.9% to $1.05 billion.
Zscaler, Inc. Price and Consensus
Zscaler, Inc. price-consensus-chart | Zscaler, Inc. Quote
Stratasys is a manufacturer of in-office rapid prototyping (RP) and manufacturing systems and 3D printers for automotive, aerospace, defense, electronic, medical, education and consumer product original equipment manufacturers (OEMs).
The company is benefiting from an increase in demand for 3D-printed medical equipment. Moreover, Stratasys’ cost-control initiatives are expected to reflect positively on expenses in the forthcoming quarters. The firm’s focus on launching products and entering into partnerships is a key driver.
In the last-reported quarter, Stratasys registered growth across key metrics, including revenues, earnings and cash flows. This shows that the company is rapidly recovering from the pandemic-induced chaos.
Stratasys currently carries a Zacks Rank #2 and has a Growth Score of B. The long-term earnings growth rate for the stock is pegged at 36%.
The Zacks Consensus Estimate for Stratasys’ 2022 earnings has increased 11 cents to 17 cents per share over the past seven days, reflecting a robust improvement from the year-ago quarter’s loss of 7 cents. Revenues are estimated to increase 13.1% to $686.9 million.
Stratasys, Ltd. Price and Consensus
Stratasys, Ltd. price-consensus-chart | Stratasys, Ltd. Quote