U.S. equities are flying higher on Thursday with the Nasdaq Composite bagging new highs above 5,300 thanks to breakout moves in a number of big-tech heavyweights like Amazon.com, Inc. (NASDAQ:AMZN) and Facebook Inc (NASDAQ:FB).
All thanks to the Federal Reserve’s decision on Wednesday to hold off on a rate hike until later this year, removing the threat of the largest potential negative catalyst for the market heading into the end of the year.
Why? Because inflation remains tepid, the job market gains have recently slowed, GDP growth has been underwhelming, and factory activity is slowing outright.
But ostensibly, this is also about keeping markets happy as futures odds of a rate hike were below 20%. A move now would’ve destabilized stocks ahead of the presidential election. Which would’ve made the Fed seem political.
With stocks off to the races, investors looking for new trade ideas should scour under the surface a little, looking at tech-sector turnaround plays. Here are four to consider.
Tech Stocks to Buy: HP (HPQ)
Click to Enlarge HP Inc (NYSE:HPQ) shares are pushing past the $15-a-share level on Thursday returning to levels not seen since early last year, thanks to renewed optimism about the health of the PC industry.
This after Intel Corporation (NASDAQ:INTC) last week raised its revenue and gross margin guidance on replenishment of the PC supply chain inventory on increased consumer demand. After the flat reception for the Windows 10 unveiling, this is great news (and possibly motivated by excitement over VR, which needed increased processing power).
The company will next release results on Nov. 22 after the close. Analysts are looking for earnings of 36 cents per share on revenues of $11.8 billion.
Edge Pro subscribers are up nearly 5% already in their HPQ Oct $15 calls recommended on Wednesday.
Tech Stocks to Buy: Yahoo! (YHOO)
What’s impressive is that the rise is coming despite the announcement a state-sponsored actor stole user information associated with at least 500 million user accounts in late 2014.
A trade in YHOO is a bet that a liquidation of its assets — after the sale of its core Internet operations to Verizon Communications Inc. (NYSE:VZ) for $4.8 billion — is worth upward of $54 a share according to analysts at Gabelli & Co. These assets include its stake in Alibaba Group Holding Ltd (NYSE:BABA) and Yahoo! Japan.
The company will next report results on Oct. 18 after the close. Analysts are looking for earnings of 14 cents per share on revenues of $862 million.
Tech Stocks to Buy: GoPro (GPRO)
Click to Enlarge GoPro Inc (NASDAQ:GPRO) shares are triumphantly returning to January levels — breaking free of its year-long funk — as the negativity surrounding its Hero Session misstep and new product drought are washed away by building excitement over the Hero 5 camera and the Karma video drone system.
Both of which are being launched just in time for the holiday shopping season. Karma, at $799, is ultra-portable with an included backpack and features a removable 3-axis camera gimbal that stabilizes handheld video photography as well.
The company will release earnings on Oct. 27 after the close. Analysts are looking for a loss of 35 cents per share on revenues of $308 million. The stock is up 11.8% for Edge subscribers so far this month.
Tech Stocks to Buy: 3D Systems Corporation (DDD)
Still, shares have a long way to go to return to the high of $97.28 set back in late 2013 as the hype over 3D printing was in full swing.
Investors are coming back into the stock amid turnaround efforts at DDD with a new management team and a new focus on moving from prototyping to production as well as investments in the space by General Electric Company (NYSE:GE).
The company will next report results on Nov. 3 before the bell. Analysts are looking for earnings of nine cents per share on revenues of $159 million.