U.S. equities climbed out of an open sinkhole Thursday, led mainly by the performance of small-cap stocks, which have been on fire in recent weeks.
That represents some leadership handover from the tech sector as key issues like Apple Inc. (NASDAQ:AAPL) and Amazon.com, Inc. (NASDAQ:AMZN) have demonstrated some weakness, likely on a profit-taking motive.
But looking beneath the surface, a number of stocks in the area are perking up nicely. Especially in semiconductors — IoT, VR/AR, machine learning — and in old familiar names you probably haven’t considered in a while.
Here are three stocks, and one exchange-traded fund, that are worth a look:
Tech ETFs to Buy: Market Vectors Semiconductors (SMH)
The VanEck Vectors Semiconductor ETF (NYSEARCA:SMH) fund, which includes exposure to industry heavyweights including Intel Corporation (NASDAQ:INTC) and Nvidia Corporation (NASDAQ:NVDA), is extending its upward momentum on Thursday looking ready for another push to new highs. The fund has more than doubled from its early 2016 lows and hasn’t so much as touched its 50-week moving average since May 2016.
The fund has more than doubled from its early 2016 lows and hasn’t so much as touched its 50-week moving average since May 2016.
Tech Stocks to Buy: Cree (CREE)
Cree, Inc. (NASDAQ:CREE) shares are extending out of a year-to-date consolidation range to return to levels not seen since early February. The move above the company’s summertime highs comes amid a turnaround in sentiment after investors were disappointed with prior forward guidance on weakness in the lighting division for this market of high-power LEDs.
Focus is turning to the “Wolfspeed” segment which makes power and RF products used in renewable energy, telecom, automotive, and power management systems that posted 30% year-over-year growth last quarter.
The company will next report results on Oct. 17 after the close. Analysts are looking for earnings of four cents per share on revenues of $360 million. When the company last reported on Aug. 22, earnings of four cents per share matched estimates despite a 7.6% drop in revenues.
Tech Stocks to Buy: BlackBerry (BBRY)
BlackBerry Ltd (NASDAQ:BBRY) shares are surging more than 15% in trading on Thursday after reporting quarterly results. The move ends a five-month downtrend and takes the stock back to levels not seen since June.
The company reported earnings of five cents per share (vs. zero estimated) on revenues of $249 million. Management also issued upbeat guidance for the rest of the year.
When the company last reported on Sept. 28, earnings of five cents per share matched estimates despite a 29.3% decline in revenues.
Tech Stocks to Buy: Alphabet (GOOGL)
Alphabet Inc (NASDAQ:GOOG, NASDAQ:GOOGL) shares look ready to emerge from a five-month consolidation range with a push above both its upper Bollinger Band and its 50-day moving average.
Watch for a move to the prior highs tested in June and July, which would be worth a gain of more than 3% from here.
The company will next report results on Oct. 26 after the close. Analysts are looking for earnings of $8.38 per share on revenues of $27.08 billion. When it last reported on July 24, earnings of $5.01 beat estimates by 58 cents on a 21% rise in revenues.