4 Growth Listed Tech Stocks To Buy Amid High Market Volatility – March 3, 2022
The US stock market has been experiencing high volatility for the past few months, thanks to multiple factors, including the pandemic, rising crude oil prices, rising inflation concerns and hawkish central bank policy.
Moreover, the escalation of tensions between Russia and Ukraine has further increased this volatility over the past week. The economic and financial sanctions imposed by the United States and the European Union to punish Russia continue to cause turbulence in the markets.
Although the sanctions imposed on Russia are expected to have a nominal direct impact on US-based companies due to their minimal exposure in the country, they are likely to seriously harm European and Asian countries. This could further derail the overall global economic recovery.
The aforementioned global macroeconomic and geopolitical uncertainties are expected to continue to weigh on investor sentiment, which could lead to greater volatility in the US stock market. Year-to-date, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 have plunged 6.7%, 12.1% and 8% respectively.
In such a scenario, listed growth stocks, such as Advanced micro-systems (AMD – free report), Micron Technology (MU – free report), Z-scale (SZ – free report) and Stratasys Limited (SSYS – Free report) can boost his portfolio.
Counter market volatility with growth stocks
In the midst of financial instability, it is prudent to choose solid growth companies because they are financially stable and generate profits in established markets. These stocks, with their strong fundamentals, allow investors to protect their funds against any economic downturn.
Here, we’ve focused on four tech stocks that could enrich your portfolio in 2022 and beyond.
In addition to having strong fundamentals, the long-term earnings growth rate of these stocks is over 20%. These stocks also have the favorable combination of a growth score of A or B and a Zacks rank of #1 (strong buy) or #2 (buy).
According to Per Zacks’ proprietary methodology, stocks with such a favorable combination offer strong investment opportunities.
Our choices
Advanced micro-systems builds on the robust performance delivered by Computing and Graphics, and Enterprise Embedded and Semi-Custom segments. AMD is benefiting from the growing adoption of Ryzen and EPYC server processors.
The growing proliferation of artificial intelligence and machine learning in cloud, gaming and supercomputing remains a tailwind. The growing influence of 7 nanometer (nm) products in the data center vertical, driven by work-from-home and e-learning trends, is expected to continue to act as another key catalyst.
The company, which is a well-known supplier of microprocessors, servers and embedded processors, as well as semi-custom System-on-Chip products and technologies for game consoles, is expected to gain momentum in its data centers through its acquisition of Xilinx.
AMD currently sports a Zacks No. 1 ranking and a growth score of B. The stock’s long-term earnings growth rate is pegged at 29.1%. You can see the full list of today’s Zacks #1 Rank stocks here.
The Zacks consensus estimate for Advanced Micro Devices’ 2022 earnings rose 70 cents to $3.99 per share over the past 30 days, indicating a 43% year-over-year increase. Revenue is expected to rise 30.6% to $21.46 billion.
Micron Technology is one of the world’s leading providers of semiconductor memory solutions. The company is benefiting from strong demand for memory chips from PC and mobile phone manufacturers.
Micron sees growing demand for memory chips from cloud providers and accelerating adoption of 5G cellular networks. The growing mix of high value-added solutions, improved customer engagement and improved cost structure are also growth drivers. Additionally, the adoption of 5G beyond mobile is likely to drive demand for memory and storage, especially in Internet of Things (IoT) devices and wireless infrastructure.
The stock’s long-term earnings growth rate is pegged at 24.2%. MU currently has a Zacks Rank No. 2 and Growth Score of A.
Zacks’ consensus estimate for Micron’s fiscal year 2022 earnings improved 4 cents to $8.95 per share over the past 30 days, implying a 47.7% increase in one year to the next. Revenue is expected to rise 15.6% to $32.03 billion.
Z-scale is one of the world’s leading providers of cloud-based security solutions. The company offers a full range of enterprise network security services, including web security, internet security, antivirus, vulnerability management, firewalls and control of user activity in environments. mobile, cloud computing and the Internet of Things.
Zscaler is benefiting from the growing demand for cybersecurity solutions due to the multitude of data breaches. The growing demand for privileged access security on digital transformation and cloud migration strategies is a key growth driver. The strength of Zscaler’s portfolio reinforces its competitive advantage and helps add users.
Additionally, a strong presence in verticals, such as banking, insurance, healthcare, public sector, pharmaceuticals, telecommunications services and education, shields Zscaler from the negative impact of the pandemic. . In addition, recent acquisitions, Smokescreen and Trustdome, should enrich its portfolio.
The stock’s long-term earnings growth rate is pegged at 39.1%. ZS currently has a Zacks Rank #2 and Growth Score of A.
Zacks’ consensus estimate for Zscaler’s fiscal year 2022 earnings improved by a penny to 53 per share over the past seven days, reflecting a 1.9% year-over-year increase. ‘other. Revenue is expected to rise 55.9% to $1.05 billion.
Stratasys is a manufacturer of rapid prototyping (RP) and desktop manufacturing systems and 3D printers for original equipment manufacturers (OEMs) in the automotive, aerospace, defense, electronics, medicine, education and consumer products.
The company is benefiting from an increase in demand for 3D printed medical equipment. In addition, Stratasys’ cost control initiatives should positively impact expenses in the coming quarters. The company’s focus on launching products and securing partnerships is a key driver.
In the most recently reported quarter, Stratasys delivered growth on key metrics including revenue, earnings and cash flow. This shows that the company is recovering quickly from the chaos caused by the pandemic.
Stratasys currently holds a Zacks rank of No. 2 and a growth score of B. The stock’s long-term earnings growth rate is pegged at 36%.
Zacks’ consensus estimate for Stratasys’ 2022 earnings rose 11 cents to 17 cents per share over the past seven days, reflecting a solid improvement from the previous year’s loss of 7 cents. Revenue is expected to rise 13.1% to $686.9 million.