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3 Strong Buy Tech Stocks You Should Be Considering Right Now

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Not to become annoyingly existential, but technology is everywhere, and has, without a doubt, impacted our daily lives. Market leaders like Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) , Facebook (FB - Free Report) , and Google (GOOGL - Free Report) dominate the industry with consumer-favorite products. Just take Apple’s latest Keynote event, where the company unveiled a slew of new products that will have people standing in long lines just to get their hands on them.

But this is nothing new. While we may all be slaves to our smartphone, the least we could do is invest in an industry that right now, is one of the best performers out there. Despite its volatility and risk—the tech sector is impacted by the ebb and flow of changing trends and consumer demand just like anything else—technology is a profitable area to out your money in, with plenty of high growth and good value options.

The Technology Select Sector SPDR Fund (XLK - Free Report) , for instance, has gained nearly 22% so far this year, while the Vanguard Information Technology ETF (VGT - Free Report) is up over 25%. And today, we’ve highlighted three tech stocks that sit at a #1 (Strong Buy) on the Zacks Rank, and boast strong growth and value fundamentals.

1. Micron Technology Inc. (MU - Free Report)

Micron is a leading global semiconductor manufacturer that produces dynamic random access memory chips (DRAMs), static random access memory chips (SRAMs), flash memory, and other memory modules. Notably, Micron has been moving away from the PC business over the years, and now has thriving mobile, networking, and embedded systems (also read: Micron: A Powerful Self-Driving Car Stock).

In its most recent quarter, Micron surprised investors with an overall strong report, beating estimates on both the top and bottom line. Most impressively, revenues soared 92% year-over-year, and net income came in at $1.6 billion compared to a $215 million loss in the year-ago quarter.

Micron’s growth estimates going forward are absolutely insane. The company is looking at earnings growth of over 7,600% for the current year, and three analysts have revised their estimates upwards in the past 30 days compared to none lower. With a P/E of just 5.47, Micron is cheap, and the stock has traded below the S&P 500 for the past year. Combine its growth trajectory with the growing need for semiconductor manufacturers, however, and MU may not stay this inexpensive for long.

2. YY Inc. (YY - Free Report)

YY is a Chinese live streaming platform that allows users to interact in live online group activities through voice, text, and video. Users can create groups that vary in size, and discover and participate in online music and entertainment, e-learning, live game broadcasting, and online games and dating.

Looking ahead, YY is projecting earnings of about 44.5% for the current year, with sales increasing 7.5% in the same time frame. For next year, earnings are expected to continue to grow nearly 18%, while sales are estimated to rise about 11.6%. YY has an average earnings surprise of 41.5%.

Value-wise, YY has a P/E of 13, and the stock hasn’t traded above the S&P 500 since last October. It also comes in much cheaper than the Internet-Content industry’s P/E of over 30, as well as Chinese internet peers Weibo (WB - Free Report) and Momo Inc. (MOMO - Free Report) . Even though the company has a much smaller piece of the market, YY looks to be a bargain compared to its rivals.

3. The Trade Desk Inc. (TTD - Free Report)

Operating in the ad-tech space, The Trade Desk allows customers to buy various types of advertisements to run global digital media campaigns like display advertising, social media, and advanced TV, with hopes to expand its reach in digital radio and connected TV. The company filed its IPO just about a year ago now, and ever since, shares have climbed almost 105%.

Last quarter, The Trade Desk continued its strong earnings performance with another better-than-expected report. The company beat both earnings and revenue estimates, while its mobile segments were particularly impressive; mobile in-app grew 87% and mobile video grew 171% year-over-year.

The Trade Desk anticipates big growth moving forward, with earnings for the current year expected to grow nearly 55% and sales increasing over 50%. TTD stock, though, is expensive, and currently has a forward P/E of just over 44. The company has traded above the S&P 500 since its IPO, and is considerably more expensive than the Internet-Services industry (which is not cheap either).

Like in other sectors, investors have always been willing to pay more for a stock because of perceived value, and internet stocks in general are coveted among the broad swath of tech stocks. This thinking will likely work in The Trade Desk’s favor.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>

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