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3 Blue Chip Tech Stocks to Buy Now

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Recent volatility has spooked individual and institutional investors alike, but as the rebound marches on, it is likely that money will find continue to find refuge in strong, consistent companies with businesses that can withstand near-term headwinds.

This might mean that some of the world’s tech leaders, which have dominated Wall Street over the past several years, are back on the menu. Tech has been at the helm of our historic bull market, and it seems likely to remain that way, so long as the bull maintains its newfound footing.
Of course, 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, long-term earnings and revenue growth fueling this tech rally. There have been concerns about global economic slowdowns, certainly. But even the Q4 earnings reports that have been released already this season show solid business trends.
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. Sony Corporation
This Japanese electronics giant has a dominant position with many key products, including audio and video equipment, televisions, displays, semiconductors, game consoles, computers and computer peripherals, and telecommunication equipment. Sony shares are up a respectable 3% over the past year, and the stock is still reasonably valued. SNE is trading at about 10x earnings and has a PEG ratio of 0.98, both of which present discounts to their industry averages.
Meanwhile, management is generating $5.94 in cash per share, which should strengthen the company’s ability to invest in new technologies. Earnings growth is expected to be 50% on 6.5% higher revenue in the current fiscal year. SNE currently sports a Zacks Rank #1 (Strong Buy).
2., Inc. (CRM - Free Report)
Salesforce is the market leader in sales support and customer relations management software. If you aren't actively using Salesforce in your office, you're likely a customer of something that is; that's simply how ubiquitous its products are. Salesforce currently has a Zacks Rank #1 (Strong Buy) and a “B” grade for Growth in our Style Scores system.
CRM is certainly still a growth stock, so it might not move as tried-and-true blue chips do. But the stock is a powerhouse, no doubt. For the fiscal year ending this month, earnings growth is expected to finish at 93% on 26% higher revenue. That expansion is projected to result in a long-term EPS growth rate of more than 24%. Of course, estimates have already moved higher across the board—and the sock hasn't missed estimates ever—so this growth could end up being greater than that. The valuation here is stretched, and you don't get the dividend that typical blue chips deliver, but Salesforce has earned a remarkable reputation, and it deserves thought as a long-term investment.
3. Cisco Systems, Inc. (CSCO - Free Report)
IT behemoth Cisco needs little introduction other than to mention that this Dow component has solid upside potential right now. The stock has a modest Zacks Rank #3 (Hold) rating, but it's also on the cusp of a new wave of opportunity, evidenced by its “A” grade in our Growth category. What's more,  you're getting great stability and income here. Cisco has a dividend yield of 2.9%, and it has a proven history of upping this payout. Shares of Cisco also trade at a reasonable 15x earnings.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, wouldn't you like to know about our 10 finest buy-and-holds for the year? 
From more than 4,000 companies covered by the Zacks Rank, these 10 were picked by a process that consistently beats the market. Even during 2018 while the market dropped -5.2%, our Top 10s were up well into double-digits. And during bullish 2012 – 2017, they soared far above the market's +126.3%, reaching +181.9%.
This year, the portfolio features a player that thrives on volatility, an AI comer, and a dynamic tech company that helps doctors deliver better patient outcomes at lower costs.

See More Zacks Research for These Tickers

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Salesforce Inc. (CRM) - free report >>

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