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Time to Buy These 2 Tech Stocks for 2023?

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Finding growth among technology companies is more challenging as inflation has a very ill effect on the sector. This leaves investors searching for opportunities among tech stocks as even big tech companies are experiencing a slowdown.  

With that being said, here are two tech stocks that do look poised for a strong 2023.

Ciena (CIEN - Free Report)

Ciena (CIEN - Free Report) is a leader in fiber optics through its optical networking equipment, software, and services. CIEN stock appears poised for a nice rebound in 2023.

Ciena’s earnings are now projected to pop 37% in its fiscal 2023 to $2.61 per share. Fiscal 2024 earnings are expected to climb another 36% to $3.55 per share. Earnings estimates have trended down over the last quarter but this anticipated year-over-year growth is still spectacular.

On the top line, sales are forecasted to jump 15% in FY23 and rise another 8% in FY24 to $4.55 billion. FY24 would represent 27% growth from pre-pandemic levels with 2019 sales at $3.57 billion.

Year to date CIEN is down -34% to underperform the S&P 500’s -18% and the Nasdaq’s -28%. However, over the last five years, Ciena’s stock is still up +138% to blast the broader indexes.

Zacks Investment Research
Image Source: Zacks Investment Research

This year’s decline may be a nice buying opportunity with CIEN trading around $50 a share and 35% from its highs. At current levels, CIEN trades at 25.4X earnings. This is a 56% discount from its decade high of 58.3X and close to its median of 23X during this period.

Even better, the average Zacks Price Target suggests 20% upside from current levels.

nVent Electric (NVT - Free Report)

Electrical connection and protection solutions provider nVent Electric (NVT - Free Report) also looks poised for a strong 2023.

Earnings are now expected to jump 18% in 2022 and rise another 7% in fiscal 2023 at $2.48 per share. Earnings estimate revisions for FY22 and FY23 have also risen over the last 60 days. Sales are projected to climb 17% this year and rise 3% in FY23 to $2.97 billion.

NVT stock is up +3% year to date to crush the S&P 500 and the Nasdaq. Plus, over the last five years, NVT’s total return is +95% to also beat the broader indexes.

Zacks Investment Research
Image Source: Zacks Investment Research

nVent shares trade at $39 and 17.1X forward earnings. This is on par with the industry average and nicely below its decade high of 19.5X.

nVent offers a solid 1.76% annual dividend yield at $0.70 a share and the average Zacks Price Target still suggests 4% upside from its current levels.

Bottom Line

Considering their current valuation and earnings growth, Ciena and nVent both look poised for a strong 2023. This will be harder to find among the broader economy and in the tech sector making both stocks worth consideration.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Ciena Corporation (CIEN) - free report >>

nVent Electric PLC (NVT) - free report >>

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