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4 Undervalued Tech Stocks to Buy Amid High Market Volatility
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The year so far has been highly volatile for the U.S. stock market. Year to date, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have plunged 4.9%, 11.6% and 6.4%, respectively. The global economy has been going through a massive slowdown due to the macroeconomic and geopolitical environment.
The ongoing Russia-Ukraine war has increased worries for investors who were already concerned about global economic recovery due to increasing crude oil prices, rising inflation and a hawkish policy adopted by the Fed, leading to high volatility in the equity market.
At this stage, investors may consider adding stocks such as Micron Technology (MU - Free Report) , Hewlett Packard Enterprise (HPE - Free Report) , Qualcomm (QCOM - Free Report) and United Microelectronics (UMC - Free Report) to their portfolio to shrug off the impacts of the current highly volatile market environment and make some gains from their upside potential.
Undervalued Stocks With Growth Potential
In the current scenario (highly volatile market situation), one should look for stocks that are undervalued but have bright growth prospects. On the other hand, if the market shoots up, these stocks have increased chances of registering higher gains. This implies that undervalued stocks cushion investors from market jitters, while companies’ robust fundamentals ensure solid portfolio returns.
However, it is difficult to pick such multi-faceted stocks from a plethora of investment opportunities.
Here the Zacks Style Score comes in handy. The Value Style Score will help us filter stocks that are undervalued, while our Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
Our Picks
With the help of our style score system, we have zeroed in on four aforementioned stocks, which look promising based on their encouraging Zacks Rank, and favorable Value and Growth style scores.
Our first pick is Micron Technology, which has a Growth Score and Value Score of A and carries a Zacks Rank of 2 (Buy). For the current fiscal, the company has a projected EPS growth rate of 47.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Micron is witnessing growing demand for memory chips from cloud-computing providers and acceleration in 5G (fifth-generation) 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 the Internet of Things devices and wireless infrastructure.
Another stock that makes it to our list is Hewlett Packard Enterprise, which has a Growth and Value Score of B and A, respectively, and carries a Zacks Rank #2. For the current fiscal, the company has an expected EPS growth rate of 7.1%.
Hewlett Packard Enterprise is benefiting from strong execution in clearing backlogs, improved supply-chain and increased customer acceptance. HPE’s efforts to shift focus to higher-margin offerings like Intelligent Edge and Aruba Central Hyperconverged Infrastructure are aiding its bottom-line results.
Additionally, Hewlett Packard Enterprise’s target of saving at least $800 million annually by fiscal 2022-end through a cost optimization plan is a positive. Moreover, its multi-billion-dollar investment plan across expanding networking capabilities will help diversify business from server and hardware storage markets, and boost margins over the long run.
Hewlett Packard Enterprise Company Price and Consensus
Investors can also consider Qualcomm, which has a Growth and Value Score of B. For fiscal 2022, this Zacks Rank #2 company has an estimated EPS growth rate of 37.7%
Qualcomm is focusing on retaining its leadership in 5G and the chipset market, delivering low-power resilient multi-gigabit connectivity with unprecedented range and best-in-class security for a seamless transition to super-fast 5G networks.
The recent acquisition of Veoneer is expected to offer the company a firmer footing in the emerging market of driver-assistance technology. This, in turn, is likely to augment its automotive business as it strives to boost revenues beyond chipmaking for the smartphone market. Qualcomm is also witnessing healthy traction in EDGE networking solutions that help to transform connectivity in business enterprises, homes and smart factories.
Next on our list is United Microelectronics, which has a Growth and Value Score of B and A, respectively, and carries a Zacks Rank #2. The company’s earnings estimate for the current year suggests year-over-year growth of 30.1%.
United Microelectronics is benefiting from a strong demand environment, increased pricing and full-capacity utilization. It has been consistently gaining momentum among customers on the back of its comprehensive portfolio of technology offerings.
The company’s growing efforts toward expanding its manufacturing capacities are anticipated to help it cater to the rising wafer demand. Prospects around the P6 program are expected to be major growth drivers in the long run.
Additionally, the growing adoption of 5G phones, electric vehicles and Internet of Things-based devices are creating demand for silicon content. This, in turn, is increasing the demand for foundry. Thus, United Microelectronics’ strengthening position in the foundry capacity remains a tailwind.
United Microelectronics Corporation Price and Consensus
Image: Bigstock
4 Undervalued Tech Stocks to Buy Amid High Market Volatility
The year so far has been highly volatile for the U.S. stock market. Year to date, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have plunged 4.9%, 11.6% and 6.4%, respectively. The global economy has been going through a massive slowdown due to the macroeconomic and geopolitical environment.
The ongoing Russia-Ukraine war has increased worries for investors who were already concerned about global economic recovery due to increasing crude oil prices, rising inflation and a hawkish policy adopted by the Fed, leading to high volatility in the equity market.
At this stage, investors may consider adding stocks such as Micron Technology (MU - Free Report) , Hewlett Packard Enterprise (HPE - Free Report) , Qualcomm (QCOM - Free Report) and United Microelectronics (UMC - Free Report) to their portfolio to shrug off the impacts of the current highly volatile market environment and make some gains from their upside potential.
Undervalued Stocks With Growth Potential
In the current scenario (highly volatile market situation), one should look for stocks that are undervalued but have bright growth prospects. On the other hand, if the market shoots up, these stocks have increased chances of registering higher gains. This implies that undervalued stocks cushion investors from market jitters, while companies’ robust fundamentals ensure solid portfolio returns.
However, it is difficult to pick such multi-faceted stocks from a plethora of investment opportunities.
Here the Zacks Style Score comes in handy. The Value Style Score will help us filter stocks that are undervalued, while our Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth.
Our Picks
With the help of our style score system, we have zeroed in on four aforementioned stocks, which look promising based on their encouraging Zacks Rank, and favorable Value and Growth style scores.
Our first pick is Micron Technology, which has a Growth Score and Value Score of A and carries a Zacks Rank of 2 (Buy). For the current fiscal, the company has a projected EPS growth rate of 47.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Micron is witnessing growing demand for memory chips from cloud-computing providers and acceleration in 5G (fifth-generation) 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 the Internet of Things devices and wireless infrastructure.
Micron Technology, Inc. Price and Consensus
Micron Technology, Inc. price-consensus-chart | Micron Technology, Inc. Quote
Another stock that makes it to our list is Hewlett Packard Enterprise, which has a Growth and Value Score of B and A, respectively, and carries a Zacks Rank #2. For the current fiscal, the company has an expected EPS growth rate of 7.1%.
Hewlett Packard Enterprise is benefiting from strong execution in clearing backlogs, improved supply-chain and increased customer acceptance. HPE’s efforts to shift focus to higher-margin offerings like Intelligent Edge and Aruba Central Hyperconverged Infrastructure are aiding its bottom-line results.
Additionally, Hewlett Packard Enterprise’s target of saving at least $800 million annually by fiscal 2022-end through a cost optimization plan is a positive. Moreover, its multi-billion-dollar investment plan across expanding networking capabilities will help diversify business from server and hardware storage markets, and boost margins over the long run.
Hewlett Packard Enterprise Company Price and Consensus
Hewlett Packard Enterprise Company price-consensus-chart | Hewlett Packard Enterprise Company Quote
Investors can also consider Qualcomm, which has a Growth and Value Score of B. For fiscal 2022, this Zacks Rank #2 company has an estimated EPS growth rate of 37.7%
Qualcomm is focusing on retaining its leadership in 5G and the chipset market, delivering low-power resilient multi-gigabit connectivity with unprecedented range and best-in-class security for a seamless transition to super-fast 5G networks.
The recent acquisition of Veoneer is expected to offer the company a firmer footing in the emerging market of driver-assistance technology. This, in turn, is likely to augment its automotive business as it strives to boost revenues beyond chipmaking for the smartphone market. Qualcomm is also witnessing healthy traction in EDGE networking solutions that help to transform connectivity in business enterprises, homes and smart factories.
QUALCOMM Incorporated Price and Consensus
QUALCOMM Incorporated price-consensus-chart | QUALCOMM Incorporated Quote
Next on our list is United Microelectronics, which has a Growth and Value Score of B and A, respectively, and carries a Zacks Rank #2. The company’s earnings estimate for the current year suggests year-over-year growth of 30.1%.
United Microelectronics is benefiting from a strong demand environment, increased pricing and full-capacity utilization. It has been consistently gaining momentum among customers on the back of its comprehensive portfolio of technology offerings.
The company’s growing efforts toward expanding its manufacturing capacities are anticipated to help it cater to the rising wafer demand. Prospects around the P6 program are expected to be major growth drivers in the long run.
Additionally, the growing adoption of 5G phones, electric vehicles and Internet of Things-based devices are creating demand for silicon content. This, in turn, is increasing the demand for foundry. Thus, United Microelectronics’ strengthening position in the foundry capacity remains a tailwind.
United Microelectronics Corporation Price and Consensus
United Microelectronics Corporation price-consensus-chart | United Microelectronics Corporation Quote