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By their very nature, growth investors are primarily focused on finding companies whose earnings and revenue are expected grow at a rate that outpaces the market. This investment strategy comes with its fair share of risks, but it also brings the exciting possibility of outsized returns—an end goal that every investor desires.
Over the past several years, Wall Street’s most exciting growth stocks have emerged from the technology sector. From industry innovators like Amazon (AMZN - Free Report) and Netflix (NFLX - Free Report) to exciting foreign stocks such as Alibaba (BABA - Free Report) , tech-focused growth investors have been rewarded with massive profits recently.
Strong earnings and impressive sales imply that the technology sector’s hot streak should continue throughout 2018. That means that growth investors searching for the next great market-beating stock might want to keep their focus on tech companies.
Luckily, we can pair the proven Zacks Rank with our innovative Style Scores system, which includes a “Growth” category, to find strong growth tech stocks. Investors should note that our Growth category values earnings and sales growth, as well as improvements to a company’s financial statements—including strong cash flows and great return on equity.
With all of this said, check out these three tech stocks for growth investors to consider now:
Vishay Intertechnology is a producer of discrete semiconductors and passive electronic components. The company has a broad portfolio of solutions that are tailored to the “things” being controlled in the Internet of Things, which have been a key growth catalyst for the firm. Shares of VSH are up about 34% over the past year and should continue to rise if expansion projections hold up.
Based on our latest consensus estimates, we expect Vishay to finish fiscal 2017 with EPS growth of 68% and sales growth of 12%. That expansion is expected to continue next year, with current estimates calling for earnings growth of an additional 12% and revenue growth of 6.5%.
Vishay is expected to improve its profits by an annualized rate of 21% over the next three to five years. The firm’s RoE of 12% and net margin of 4% both stack up well against its competition, and the stock is currently sporting a Zacks Rank #2 (Buy).
Micron is one of the leading worldwide providers of semiconductor memory solutions. The company’s memory solutions are marketed towards customers in a variety of industries, including computer manufacturing, consumer electronics, and telecommunications. Shares of Micron are up over 85% within the past year, and the stock is one of Wall Street’s most talked about.
This is owed directly to the company’s incredible growth rates on the top and bottom lines. In fact, our current consensus estimates are calling for triple-digit EPS growth and 60% sales growth this quarter. Meanwhile, estimates for the full fiscal year, which ends in August, are calling for EPS growth of 98% and revenue growth of 37%.
Micron’s earnings are expected to improve at an annualized rate of 10% over the next three to five years, but the stock currently has a Zacks Rank #1 (Strong Buy), so investors might want to buy into that growth right now.
HubSpot inbound marketing software platform that helps companies to attract visitors to their websites, convert visitors into leads, and close leads into customers. Its software platform consists of integrated applications, such as social media, search engine optimization, blogging, and website content management, marketing automation, email, and analytics and reporting.
Our current consensus estimates are calling for HubSpot to conclude its current fiscal year with earnings of $0.20 per share, an improvement of more than 155.5% from the loss of 36 cents posted last year. Earnings are projected to expand another 100% to $0.40 in the upcoming year.
This over-sized earnings growth is expected to continue are a rate of 50% over the next three to five years. The company is already an established leader in its growing industry, so investors should stand to benefit as it becomes profitable. HubSpot is currently sporting a Zacks Rank #2 (Buy).
Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
3 Tech Stocks for Growth Investors to Buy Now
By their very nature, growth investors are primarily focused on finding companies whose earnings and revenue are expected grow at a rate that outpaces the market. This investment strategy comes with its fair share of risks, but it also brings the exciting possibility of outsized returns—an end goal that every investor desires.
Over the past several years, Wall Street’s most exciting growth stocks have emerged from the technology sector. From industry innovators like Amazon (AMZN - Free Report) and Netflix (NFLX - Free Report) to exciting foreign stocks such as Alibaba (BABA - Free Report) , tech-focused growth investors have been rewarded with massive profits recently.
Strong earnings and impressive sales imply that the technology sector’s hot streak should continue throughout 2018. That means that growth investors searching for the next great market-beating stock might want to keep their focus on tech companies.
Luckily, we can pair the proven Zacks Rank with our innovative Style Scores system, which includes a “Growth” category, to find strong growth tech stocks. Investors should note that our Growth category values earnings and sales growth, as well as improvements to a company’s financial statements—including strong cash flows and great return on equity.
With all of this said, check out these three tech stocks for growth investors to consider now:
1. Vishay Intertechnology, Inc. (VSH - Free Report)
Vishay Intertechnology is a producer of discrete semiconductors and passive electronic components. The company has a broad portfolio of solutions that are tailored to the “things” being controlled in the Internet of Things, which have been a key growth catalyst for the firm. Shares of VSH are up about 34% over the past year and should continue to rise if expansion projections hold up.
Based on our latest consensus estimates, we expect Vishay to finish fiscal 2017 with EPS growth of 68% and sales growth of 12%. That expansion is expected to continue next year, with current estimates calling for earnings growth of an additional 12% and revenue growth of 6.5%.
Vishay is expected to improve its profits by an annualized rate of 21% over the next three to five years. The firm’s RoE of 12% and net margin of 4% both stack up well against its competition, and the stock is currently sporting a Zacks Rank #2 (Buy).
2. Micron Technology, Inc. (MU - Free Report)
Micron is one of the leading worldwide providers of semiconductor memory solutions. The company’s memory solutions are marketed towards customers in a variety of industries, including computer manufacturing, consumer electronics, and telecommunications. Shares of Micron are up over 85% within the past year, and the stock is one of Wall Street’s most talked about.
This is owed directly to the company’s incredible growth rates on the top and bottom lines. In fact, our current consensus estimates are calling for triple-digit EPS growth and 60% sales growth this quarter. Meanwhile, estimates for the full fiscal year, which ends in August, are calling for EPS growth of 98% and revenue growth of 37%.
Micron’s earnings are expected to improve at an annualized rate of 10% over the next three to five years, but the stock currently has a Zacks Rank #1 (Strong Buy), so investors might want to buy into that growth right now.
3. HubSpot, Inc. (HUBS - Free Report)
HubSpot inbound marketing software platform that helps companies to attract visitors to their websites, convert visitors into leads, and close leads into customers. Its software platform consists of integrated applications, such as social media, search engine optimization, blogging, and website content management, marketing automation, email, and analytics and reporting.
Our current consensus estimates are calling for HubSpot to conclude its current fiscal year with earnings of $0.20 per share, an improvement of more than 155.5% from the loss of 36 cents posted last year. Earnings are projected to expand another 100% to $0.40 in the upcoming year.
This over-sized earnings growth is expected to continue are a rate of 50% over the next three to five years. The company is already an established leader in its growing industry, so investors should stand to benefit as it becomes profitable. HubSpot is currently sporting a Zacks Rank #2 (Buy).
Want more analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!
Zacks Top 10 Stocks for 2018
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2018?
Last year's 2017 Zacks Top 10 Stocks portfolio produced double-digit winners, including FMC Corp. and VMware which racked up stellar gains of +67.9% and +61%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2018 today >>