Market Gains on Economy Reopening Optimism: 5 Tech Stocks to Buy


2020/07/09 00:00  Anirudha Bhagat

The U.S. stock market gained on Jul 8 as investors shrugged off worries about rising coronavirus cases and rejoiced on the economic reopening efforts. With an intra-day gain of 1.4%, the tech-laden Nasdaq Composite index gained the highest, followed by the S&P 500 and Dow Jones rallying 0.8% and 0.7%, respectively.

Notably, the stock market is in a recovery mode since April after bottoming out in late-March due to the pessimism surrounding the coronavirus crisis. Year-to-date losses of Dow Jones and the S&P 500 have contracted to 8.7% and 1.9%, respectively, from 23.2% and 20% as of Mar 31. The Nasdaq Composite index’s YTD return has even turned to +16.9% as of Jul 8 from -14.2% as of Mar 31.

Investors are hoping that the worst of the pandemic is almost over and the economy will swing back to a recovery mode on the government’s easing restrictions. Optimism over a potential vaccine for COVID-19, along with an uptick in economic activities and an improving job market, has also boosted investor confidence.

Tech Sector Leads Market Recovery

The technology sector has played a crucial role in the quicker recovery of the stock market. Since April to date, the Technology Select Sector SPDR (XLK-Free Report) , which tracks an index of the S&P 500 technology stocks, has rallied 34%. Moreover, the ETF has a positive year-to-date return of 17.5%, outperforming the gains of all three major U.S. indices.

The technology sector has been strongly resilient to the impact of coronavirus-induced disruptions, aided by advanced technologies, including Artificial Intelligence (AI), Machine Learning (ML), Augmented Reality (AR), cloud computing, blockchain and robotics.

The adoption rate of Internet-based services and apps has been increasing rapidly as people are compelled to stay indoors. Moreover, the global work-from-home wave is bolstering demand for advanced technology-based virtual meetings and conference tools.

Additionally, the work-and-learn-from-home necessity has propelled demand for PCs, notebooks, peripheral accessories, and cloud storage. All these, in turn, are fueling growth for high speed Internet services.

Moreover, the rising demand for robust communication networks is another positive. Further, the growing proliferation of AI technology, and cloud computing products and services in managing this pandemic situation is a tailwind. All these trends are stoking demand for semiconductor chips.

In addition, the long-term growth prospects of tech companies look promising owing to the continuous digital transformations. The accelerated deployment of 5G technology — the next-generation wireless revolution — is likely to spur further growth. Moreover, blockchain, IoT, autonomous vehicles, AR/VR and wearables offer significant growth opportunities.

Considering the healthy growth prospects of tech companies, it makes sense to invest in this space for long-term gains.

Choosing the Stocks

It is difficult to pick the right stocks from a wide range of available investment opportunities.

This is where the Zacks Stock Screener comes in handy. With the help of this screener, we have filtered five tech stocks that are incredible for investment right now. These stocks carry a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here .

Also, the stocks have a VGM Score of A or B. Per Zacks’ proprietary methodology, stocks with such favorable combinations offer solid investment opportunities.

Our Picks

Micron Technology (MU-Free Report) is benefiting from strong demand for memory chips from PC manufacturers and data-center operators. Markedly, the work-and-learn-from-home trend is stoking demand for cloud storage. Also, the pandemic-induced social-distancing measures and lockdowns have boosted the usage of online and e-commerce services globally. Therefore, data-center operators are enhancing their capacities to accommodate the demand surge for cloud services. This bodes well for the company.

Micron currently carries a Zacks Rank #2 and has a VGM Score of A. The Zacks Consensus Estimate for fiscal 2020 has moved up 15% to $2.76 per share in the past 30 days.

Micron Technology, Inc. Price and Consensus



Synaptics (SYNA-Free Report) is well poised to capitalize on its market-leading position for both touchpads and secure fingerprint sensors amid the upbeat trends in PC shipments. New design wins across all OEM leaders, including Dell, HP and Lenovo, deserve a special mention.

Further, increasing adoption of this Zacks #2 Ranked company’s edge SoCs, integrated with AI and embedded neural network capabilities for smart video and audio devices, is anticipated to be conducive to its financial performance.

The stock has a VGM Score of A and the consensus mark of $4.37 per share for its fiscal 2021 earnings has been revised 2.1% upward over the last 30 days.

Synaptics Incorporated Price and Consensus



KLA Corporation (KLAC-Free Report) is benefiting from healthy demand for process diagnostics and control equipment and yield management solutions required for the fabrication of semiconductor-integrated circuits or chips. This Zacks Rank #2 company has a competitive position in several chip equipment areas, including PCB (printed circuit board) and display. At the same time, KLA has prominent exposure to 5G smartphones, 5G infrastructure equipment and autonomous driving sensors trending in the technology industry.

KLA-Tencor has a VGM Score of A. The consensus mark for fiscal 2021 earnings has moved 8 cents north to $9.71 per share over the past 30 days.

KLA Corporation Price and Consensus



Avaya (AVYA-Free Report) is gaining on the increased communication infrastructure demand from organizations for seamless collaboration between teams amid the coronavirus-induced remote-working wave. The company’s recent international launch of Avaya Cloud Office is likely to fuel adoption of the product.

Avaya currently carries a Zacks Rank #2 and has a VGM Score of A. The Zacks Consensus Estimate for fiscal 2020 earnings has been revised upward by 12.9% to $3.14 per share in the past 60 days.

Avaya Holdings Corp. Price and Consensus



Box (BOX-Free Report) is benefiting from the growing customer base and strong cloud storage demand. This Zacks Rank #2 company provides a single place to secure, share, and manage all of the content for an organization’s internal and external collaborations and processes. Integration with other software like Microsoft Office 365, Google Apps for Work, Adobe and salesforce is likely to boost Box’s user base.

Box currently carries a VGM Score of B. The consensus mark for the company’s fiscal 2021 earnings has moved up by a penny to 50 cents per share over the past 30 days.

Box, Inc. Price and Consensus



Zacks Top 10 Stocks for 2020

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?

Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. 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.





在股市更快复苏的过程中,科技板块起到了至关重要的作用。自4月至今,追踪标准普尔500科技股指数的科技精选板块SPDR(XLK-Free Report)已上涨34%。而且,该ETF年初迄今回报率为正17.5%,表现优于所有三大美国指数的涨幅。












美光科技(MU-Free Report)正受益于个人电脑制造商和数据中心运营商对存储芯片的强劲需求。显然,在家工作和学习的趋势正在刺激对云存储的需求。此外,大流行引发的社会疏远措施和封锁促进了全球在线和电子商务服务的使用。因此,数据中心运营商正在增强其能力,以适应对云服务的需求激增。这对公司来说是个好兆头。





在PC出货量的乐观趋势中,Synaptics(Syna-Free Report)准备充分利用其在触摸板和安全指纹传感器方面的市场领先地位。新设计赢得了所有OEM领导者的青睐,包括戴尔、惠普和联想,值得特别提及。

此外,越来越多地采用Zacks排名第二的公司EDGE SoC,集成了智能视频和音频设备的人工智能和嵌入式神经网络功能,预计将有助于其财务业绩。





KLA公司(KLAC-Free Report)受益于对制造半导体集成电路或芯片所需的过程诊断和控制设备以及产量管理解决方案的健康需求。这家Zacks排名第二的公司在几个芯片设备领域拥有竞争地位,包括PCB(印刷电路板)和显示器。与此同时,KLA对科技行业中流行的5G智能手机、5G基础设施设备和自动驾驶传感器有着突出的敞口。





Avaya(Avya-Free Report)利用组织不断增长的通信基础设施需求,在冠状病毒引发的远程工作浪潮中实现团队间的无缝协作。该公司最近在国际上推出的Avaya Cloud Office可能会推动该产品的采用。





BOX(BOX-Free Report)正受益于不断增长的客户群和强劲的云存储需求。这个Zacks排名第二的公司提供了一个单一的位置来保护、共享和管理组织的内部和外部协作和流程的所有内容。与Microsoft Office365、Google Apps for Work、Adobe和Salesforce等其他软件的集成可能会扩大Box的用户基础。







去年的2019年ZACKS TOP 10大股票投资组合回报率高达+102.7。现在,Zacks Rank涵盖的4000多家公司中精选出了一个全新的投资组合。不要错过参与这些长期收购的机会。


Copyright©2019 FUTU. All rights reserved. FUTU does not provide any investment advice.