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3 Blue Chip Tech Stocks to Buy Now

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The sudden return of volatility to global stock markets has created buying opportunities in large-cap tech stocks as the sector’s investors look to rebound from recent selloffs. The world’s tech leaders have dominated Wall Street over the past two years, and now, investors might have a fresh chance to buy a few previously red-hot stocks at a discount.

Of course, this recent volatility has made some investors hesitant, with bearish traders quick to draw similarities between this latest tech rally and the infamous dot-com bubble of the late 90s and early 2000s.

However, unlike the dot-com bubble, there is real earnings and revenue growth fueling this tech rally. In fact, the average P/E ratio of our “Computer and Technology” sector currently sits at 21.8, which compares favorably to the dot-com era’s average that routinely soared into the 200s.

Another interesting trend in today’s tech rally is that, rather than obsessing over the next big thing, investors seem to rewarding tried-and-true brands for their respectable growth. This means that some of the strongest tech stocks are the household names that consumers already know and love.

With that said, check out these three blue chip tech stocks to buy now:

1. Apple Inc. (AAPL - Free Report)

Tech behemoth and iPhone maker Apple has become a backbone stock for many investors in recent years, and the company is well on its way to reaching the $1 trillion market cap threshold for the first time ever. And the stock is sporting a Zacks Rank #2 (Buy) ahead of its upcoming earnings report date, meaning the $1 trillion party could be coming very soon.

For the soon-to-be-reported quarter, Apple is projected to post earnings growth of 31% and revenue growth of 15%—obviously impressive for a firm of its size. Plus, estimates have been trending upward during the quarter, which suggests analysts have only grown more bullish. Investors also have an opportunity to get in on the cheap, with shares trading at just 17.1x forward earnings right now.


2. Microsoft Corporation (MSFT - Free Report)

Not too far behind Apple and a few other gargantuan tech companies in the race to $1 trillion sits Microsoft, a software pioneer in the midst of a cloud-computing-back rejuvenation. Microsoft just reported another solid quarter, tallying better-than-expected earnings and revenue results and growth of 89% in its Azure cloud division.

Microsoft’s great quarter—and ensuing analyst revisions—have earned the stock a Zacks Rank #1 (Strong Buy). Positive estimate revisions for 2019 and 2020 have been pouring in, and the stock is surging higher. However, with a PEG ratio of 2.1, MSFT does not seem overvalued when considering its impressive growth opportunities.


3. Intel Corporation (INTC - Free Report)

As one of the largest semiconductor manufacturers in the world, Intel has certainly earned the right to be called a blue chip stock. The semiconductor behemoth is sporting a Zacks Rank #1 (Strong Buy), and with its beat-and-raise quarterly report just hitting the airwaves, it is likely to remain among our top-ranked stocks heading forward.

Intel just came out with quarterly earnings of $1.04 per share, beating the Zacks Consensus Estimate of $0.99 per share and improving significantly from $0.72 per share in the year-ago period. Intel also raised its full-year revenue outlook to approximately $69.5 billion and non-GAAP EPS to $4.15, up $2 billion and 30 cents from April guidance.


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The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

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