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5 Top-Ranked Tech Stocks With Solid Upside Potential to Buy Now
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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 - Free Report) , Vishay Intertechnology, Inc. (VSH - Free Report) , Cadence Design Systems Inc. (CDNS - Free Report) , Pure Storage (PSTG - Free Report) and Fortinet (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.
Cadence Design Systems Inc. offers products and tools that help customers to design electronic products. Frequent product launches and synergies from acquisitions are expected to help the company sustain top-line growth. The company’s Palladium and Protium platform is gaining traction among clients in the hyperscale, AI/ML and server customers.
In the second quarter, the company announced an agreement to acquire OpenEye Scientific Software for about $500 million in cash. The deal is expected to close in the third quarter of 2022. The company wants to expand its reach in the molecular modeling and simulation market as pharmaceutical and biotechnology companies leverage computational software solutions for drug discovery.
This Zacks Rank 1 stock has a Growth Score of A. The Zacks Consensus Estimate for 2022 earnings has remained steady at $4.11 per share over the past 30 days.
Fortinet is benefiting from rising demand for security and networking products amid the coronavirus crisis as a huge global workforce is working remotely. It is also benefiting from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network (SD-WAN) offerings. Moreover, continued deal wins, especially those of high value, are a key driver. Higher IT spending on cybersecurity is further expected to aid Fortinet to grow faster than the security market. Also, the company’s focus on enhancing its unified threat management (UTM) portfolio through product development and acquisitions is a tailwind for Fortinet.
This Zacks Rank 2 stock has a Growth Score of A. The Zacks Consensus Estimate for 2022 earnings has been revised upward to $1.05 per share over the past 30 days.
Vishay Intertechnology, Inc. is well-positioned to capitalize on the growing proliferation of applications related to passive electronic component devices and the increasing demand for sophisticated electronic component designs. Further, its expanding inductor portfolio will likely benefit from the emerging need for conservation of energy in the form of a magnetic field, especially in industries like power, automotive, consumer electronics, military and defense, and RF and telecommunication.
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.
Synopsys is a vendor of electronic design automation (EDA) software for the semiconductor and electronics industries. The company is benefiting from strong design wins owing to a robust product portfolio. Relationships with companies such as Advanced Micro Devices, Juniper Networks, Realtek, Teradici, NetLogic Microsystems, Toshiba and Wolfson stand as evidence.
Growth in the work-and-learn-from-home trend is driving demand for bandwidth. Moreover, strong traction for Synopsys’ Fusion Compiler product boosted the top line. Growing demand for advanced technology, design, IP and security solutions is also creating solid prospects. Moreover, the rising impact of artificial intelligence, 5G, the Internet of Things and big data is driving investments in new compute and machine learning architectures.
This Zacks Rank 2 stock has a Growth Score of B. The Zacks Consensus Estimate for fiscal 2022 earnings has increased 4.4% to $8.84 per share over the past 30 days.
Image: Bigstock
5 Top-Ranked Tech Stocks With Solid Upside Potential to Buy Now
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 - Free Report) , Vishay Intertechnology, Inc. (VSH - Free Report) , Cadence Design Systems Inc. (CDNS - Free Report) , Pure Storage (PSTG - Free Report) and Fortinet (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.
Pure Storage, Inc. Price and Consensus
Pure Storage, Inc. price-consensus-chart | Pure Storage, Inc. Quote
Cadence Design Systems Inc. offers products and tools that help customers to design electronic products. Frequent product launches and synergies from acquisitions are expected to help the company sustain top-line growth. The company’s Palladium and Protium platform is gaining traction among clients in the hyperscale, AI/ML and server customers.
In the second quarter, the company announced an agreement to acquire OpenEye Scientific Software for about $500 million in cash. The deal is expected to close in the third quarter of 2022. The company wants to expand its reach in the molecular modeling and simulation market as pharmaceutical and biotechnology companies leverage computational software solutions for drug discovery.
This Zacks Rank 1 stock has a Growth Score of A. The Zacks Consensus Estimate for 2022 earnings has remained steady at $4.11 per share over the past 30 days.
Cadence Design Systems, Inc. Price and Consensus
Cadence Design Systems, Inc. price-consensus-chart | Cadence Design Systems, Inc. Quote
Fortinet is benefiting from rising demand for security and networking products amid the coronavirus crisis as a huge global workforce is working remotely. It is also benefiting from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network (SD-WAN) offerings. Moreover, continued deal wins, especially those of high value, are a key driver. Higher IT spending on cybersecurity is further expected to aid Fortinet to grow faster than the security market. Also, the company’s focus on enhancing its unified threat management (UTM) portfolio through product development and acquisitions is a tailwind for Fortinet.
This Zacks Rank 2 stock has a Growth Score of A. The Zacks Consensus Estimate for 2022 earnings has been revised upward to $1.05 per share over the past 30 days.
Fortinet, Inc. Price and Consensus
Fortinet, Inc. price-consensus-chart | Fortinet, Inc. Quote
Vishay Intertechnology, Inc. is well-positioned to capitalize on the growing proliferation of applications related to passive electronic component devices and the increasing demand for sophisticated electronic component designs. Further, its expanding inductor portfolio will likely benefit from the emerging need for conservation of energy in the form of a magnetic field, especially in industries like power, automotive, consumer electronics, military and defense, and RF and telecommunication.
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.
Vishay Intertechnology, Inc. Price and Consensus
Vishay Intertechnology, Inc. price-consensus-chart | Vishay Intertechnology, Inc. Quote
Synopsys is a vendor of electronic design automation (EDA) software for the semiconductor and electronics industries. The company is benefiting from strong design wins owing to a robust product portfolio. Relationships with companies such as Advanced Micro Devices, Juniper Networks, Realtek, Teradici, NetLogic Microsystems, Toshiba and Wolfson stand as evidence.
Growth in the work-and-learn-from-home trend is driving demand for bandwidth. Moreover, strong traction for Synopsys’ Fusion Compiler product boosted the top line. Growing demand for advanced technology, design, IP and security solutions is also creating solid prospects. Moreover, the rising impact of artificial intelligence, 5G, the Internet of Things and big data is driving investments in new compute and machine learning architectures.
This Zacks Rank 2 stock has a Growth Score of B. The Zacks Consensus Estimate for fiscal 2022 earnings has increased 4.4% to $8.84 per share over the past 30 days.
Synopsys, Inc. Price and Consensus
Synopsys, Inc. price-consensus-chart | Synopsys, Inc. Quote