It’s been a volatility-packed year in the market so far. Year to date, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have plunged 13.8%, 25.66% and 17.66%, respectively.
September is historically known as the worst-performing month on Wall Street. Investors have been recognizing the increasing pessimism around the possibility of a recession, rising interest rates, soaring inflation, and log-jammed supply chains, which are dragging companies and the economy down despite a better-than-expected second-quarter 2022 earnings season. Nonetheless, each and every dip in the market will be a good opportunity to enter the same and tap gains from several tech stocks like Synopsys ( SNPS Quick Quote SNPS - Free Report) , Vishay Intertechnology, Inc. ( VSH Quick Quote VSH - Free Report) , Cadence Design Systems Inc. ( CDNS Quick Quote CDNS - Free Report) , Pure Storage ( PSTG Quick Quote PSTG - Free Report) and Fortinet ( FTNT Quick Quote FTNT - Free Report) that have become highly attractive at their current valuation. Many of these stocks have a strong upside left for the rest of 2022, especially those offering hybrid-working tech, cloud services and cybersecurity solutions, which support work-from-home, online learning and remote health diagnosis. The rapid adoption of cloud computing along with the ongoing infusion of AI and machine learning as well as the accelerated deployment of 5G technology, autonomous & electric vehicles, AR/VR and wearables in healthcare, defense, retail and agriculture are major positives. Besides, rising demand for processors used in enterprise laptops and data center servers and increasing adoption of consumer electronics, industrial tools & equipment, and networking & communication products have been contributing well to global semiconductor sales, which increased 13.3% year over year to $152.5 billion in the second quarter of 2022, per The Semiconductor Industry Association (SIA) report. Here, we have selected five tech stocks that are well-poised to grow in the rest of 2022, driven by their strong fundamentals. 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). You can see the complete list of today’s Zacks #1 Rank stocks here.
Per Zacks’ proprietary methodology, stocks with such a favorable combination offer solid investment opportunities.
Our Picks Pure Storage is benefiting from robust demand in the data-driven markets of artificial intelligence, machine learning, the Internet of Things, real-time analytics, log analytics and simulation. Recent collaborations with Snowflake, Kyndryl, and AWS are likely to expand its technology portfolio. The rapid migration to remote/hybrid work setup due to the COVID-19 crisis is likely to drive the adoption of Pure Storage’s hybrid multi-cloud offerings and cloud data services in the near term. Continued momentum in its subscription services, namely Pure as-a-Service subscription (includes Cloud Block Store), Portworx and Evergreen Storage, is expected to boost Pure Storage’s performance in the rest of 2022. This Zacks Rank 1 stock has a Growth Score of A. The Zacks Consensus Estimate for 2022 earnings has moved upward to $1 per share over the past 30 days.
The company is leaving no stone unturned to expand the passive electronic components portfolio by focusing on inductor offerings. The unveiling of IHSR-6767GZ-5A, an automotive grade inductor with shielded and composite construction, by the company is a testament to the same.
This Zacks Rank 2 stock has a Growth Score of B. The Zacks Consensus Estimate for 2022 earnings has moved up to $2.96 per share over the past 30 days.