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3 High-Growth Tech Stocks to Buy Now

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Growth investing has perhaps never been more popular, as the likes of Facebook (FB - Free Report) , Amazon (AMZN - Free Report) , and Netflix (NFLX - Free Report) continue to soar—helping propel the tech industry to new heights.

The substantial gains that the tech industry has made in recent years, and in 2017 in particular, can be attributed in large part to these technology giants. Yet, the Apples (AAPL - Free Report) and Alphabets (GOOGL - Free Report) of the world aren’t the only companies poised to keep growing in the tech.

But many investors might already have their hands on Apple, Facebook, and Amazon.

With that said, let’s take a look at three tech stocks—outside of the household names—with high Zacks Ranks that are also great growth stocks:

1.       Tencent Holdings Limited (TCEHY - Free Report)

Tencent is currently a Zacks Rank #2 (Buy) and sports “A” grades for Growth and Momentum in our Style Scores system. Shares of this Chinese internet powerhouse have skyrocketed 96.66% this year.

Our current Zacks Consensus Estimates call for Tencent’s full-year EPS to hit $1.04 per share, which would mark 43.75% year-over-year growth. Furthermore, Tencent’s sales are expected to soar 63.80% in its current quarter and 59.40% for its full fiscal year. This major top-line growth, for a well-established company like Tencent, would be impressive.

The tech company also has a cash flow growth rate of 39.28%, which crushes the “Internet – Service” industry average. Looking even farther ahead, Tencent’s expected EPS growth over the next three to five years currently rests at an annualized rate of 27.15%, and Tencent’s expanding cash reserves will certainly help spur this growth.

2.       Extreme Networks, Inc. (EXTR - Free Report)

This software-based networking solutions provider works with industries from healthcare to cloud computing and is currently a Zacks Rank #2 (Buy). Extreme Networks also earns an “A” grade for Growth in our Style Scores system, which helps the company boast an overall “A” VGM score.

Extreme Networks’ sales to assets ratio of 1.38 tops the “Computer – Networking” industry’s average and helps demonstrate the company’s ability to generate revenue. The company’s current quarter sales are projected to pop 62.81%, while its full-year sales are expected to gain 65.71%, based on current Zacks Consensus Estimates. For the full-year, its earnings are expected to reach $0.73, which would mark a 59.42% surge.

Shares of Extreme Networks have skyrocketed 153% in 2017, which blows away the S&P 500. And luckily for investors, even with its insane stock price growth, Extreme Networks currently rests 9% below its 52-week high, providing it room to grow before breaking into a new range.

3.       Xcerra Corporation (XCRA - Free Report)

Xcerra is a semiconductor equipment testing company that is currently a Zacks Rank #2 (Buy). The company also sports “A” grades across the board in our Style Scores system.

Xcerra’s cash flow growth rate is a whopping 277.79%, which doubles semiconductor giant Nvidia (NVDA - Free Report) . This is also a good sign for a smaller, growing company that will need the cash to help increase its sales and profits.

Shares of Xcerra have nearly doubled the S&P 500 this year. The company also just recently crushed our quarterly earnings estimates by 65%. Based on our current Zacks Consensus Estimates, Xcerra’s EPS are expected climb 141.67% in its current quarter and 97.96% for the year. Along with this bottom line growth, Xcerra’s sales are projected to hit $90 million this quarter, which would mark a 12.33% year-over-year improvement.

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