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3 Tech Stocks to Buy Amid Possible Market Recovery

By Benjamin Rains, Zacks Investment Research

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The U.S. and China might be closer to resolving their trade issues after President Xi Jinping noted that his country will look to further open the Chinese economy to outsiders.

3 Tech Stocks to Buy Amid Possible Market Recovery
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There are no guarantees just yet, but markets seem to be a bit less jittery recently. This means now might be a good time to buy back in on the industry that drove indexes to historic heights.

Trade war turmoil and interest-related concerns led the market and some of the best-performing stocks to sink over the last few months, exemplified by major losses from Facebook Inc (NASDAQ:FB) and other technology industry powers.

However, Facebook’s dive is based mostly on company-specific problems related to its recent data breach scandal. Meanwhile, many tech stocks still boast strong fundamentals that could see them continue to surge as the market calms.

With that said, let’s take a look at three of these stocks that currently present pre-selloff positivity when you dig into some of their current metrics.

Tech Stocks to Buy Amid Possible Market Recovery: Applied Materials, Inc. (AMAT)

Applied Materials, Inc. (NASDAQ:AMAT) operates within an industry—memory and data storage—that is only going to grow as the IoT and connected devices ecosystem expands. Shares of this wafer fabrication firm are still up more than 43% over the last year in spite of AMAT’s nearly month-long downturn.

Tech Stocks to Buy Amid Possible Market Recovery: Applied Materials, Inc. (AMAT)
Source: Shutterstock

Applied Materials’ outlook also remains strong, with our Current Zacks Consensus Estimates calling for revenues to climb 25.5% to reach $4.45 billion this quarter. The company’s bottom line expansion is expected to be even better at 43%.

AMAT is also currently trading with a Forward P/E of 12.2, which marks a substantial discount to its industry’s 16.1 average. Investors should be excited to see that they can buy AMAT at a cheaper earnings multiple than many of its peers, while still expecting big year-over-year top and bottom line growth.

Lastly, Applied Materials is currently a Zacks Rank #1 (Strong Buy) that has earned a ton of upward earnings estimate revisions recently.

Tech Stocks to Buy Amid Possible Market Recovery: Western Digital Corp (WDC)

A few years ago, Western Digital Corp (NASDAQ:WDC) saw its stock price plummet. Today, the data storage solutions firm that helped kick off the computer storage industry looks ready to grow. WDC is currently a Zacks Rank #1 (Strong Buy) and is projected to see it quarterly revenues climb by more than 6% to reach $4.93 billion.

Tech Stocks to Buy Amid Possible Market Recovery: Western Digital Corp (WDC)
Source: Shutterstock

Western Digital’s downturn might have forced management to focus more heavily on earnings, which is demonstrated by WDC’s current quarterly and full-year EPS growth projections of 36.4% and 52%, respectively.

Western Digital is also currently trading at 7.6x forward earnings, which marks a major discount against the “Computer- Storage Devices” industry’s average Forward P/E of 11.7.

Investors might consider buying WDC ahead of its upcoming quarterly earnings report as it is currently trading well below its 52-week high. This means a better price could be hard to come by for some time.

Tech Stocks to Buy Amid Possible Market Recovery: Amazon.com, Inc. (AMZN)

Amazon.com, Inc. (NASDAQ:AMZN) needs no introduction these days as Jeff Bezos’ company seemingly enters a new sector of the economy every other day. Despite its size and strength, AMZN saw its stock price tumble nearly 10% over the last month.

Tech Stocks to Buy Amid Possible Market Recovery: Amazon.com, Inc. (AMZN)
Source: Shutterstock

Yet while President Donald Trump’s Twitter (TWTR) attacks against Amazon may persist, the company’s revenues are expected to surge 40.4% this quarter to reach $50.16 billion.

Furthermore, the recent selloff makes Amazon’s stock price look rather inexpensive considering that the company is expected to expand its bottom line by nearly 87% this year.

Amazon is also currently a Zacks Rank #1 (Strong Buy) that can afford to spend money to enter new growth industries, such as fintech, while its AWS cloud business stabilizes its earnings.

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Article printed from InvestorPlace Media, https://investorplace.com/2018/04/3-tech-stocks-buy-amid-possible-market-recovery-ggsyn/.

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