U.S. equities are surging higher thanks to a sharp rebound in large-cap tech stocks. Much of this comeback in the tech space can be placed on the post-earnings move in Facebook (NASDAQ:FB). But on a technical basis, a rebound was overdue for other tech stocks, with indicators such as the S&P 500’s Bullish Percent Index dropping well below the lows seen in February and in early April.
The percentage of NYSE stocks above their 50-day moving average also fell back to levels not seen since early 2016. So, by pretty much any measure, it was time for the value hunters to come out in force.
And the bulls are returning to an area of the market — mega-cap tech — that they are comfortable with after years of chasing these momentum superstars higher. Here are seven tech stocks that are worth a look right now:
Facebook (FB)
One of the kings among tech stocks, Facebook rallied more than 4% and challenged its 20-day moving average, after reporting earnings. The company reported earnings of $1.76 per share, beating estimates by 32 cents, on a 32.9% rise in revenues. Daily active users increased 9% over the previous year, with the company now estimating that more than 2.6 billion people use their family of apps.
Analysts at Aegis Capital raised their price target in response, making Facebook stock their top large-cap pick for the next 12 months with potential for 50% upside. The company will next report results on Jan. 29 after the close.
Apple (AAPL)
Apple (NASDAQ:AAPL) shares are perking up to challenge their 50-day and 20-day moving averages. This jump in Apple stock is setting the stage for a run at the highs near $235 set in early October. The company recently unveiled a new iPad Pro model with an iPhone X-like full screen design incorporating its FaceID unlocking technology.
The company will next report results on Nov. 1 after the close. Analysts are looking for earnings of $2.79 per share on revenues of $61.4 billion. When the company last reported on July 31, earnings of $2.34 beat estimates by 16 cents per share on a 17.3% rise in revenues.
Amazon (AMZN)
Amazon (NASDAQ:AMZN) shares are rallying nearly 5% on Wednesday, trying to climb back up and over the 200-day moving average and break the nasty downtrend that’s been in play since the beginning of October. The selloff so far has resulted in a loss of roughly 22% from the high set in late August, qualifying for an outright bear market. Analysts at Aegis Capital released a bullish note to clients on Tuesday, saying that history is on the side of shareholders amid expectations of ongoing profit margin expansion.
The company will next report results on Jan. 24 after the close. Analysts are looking for earnings of $5.58 per share on revenues of $73.87 billion. When the company last reported on Oct. 25, earnings of $5.75 per share beat estimates by $2.66 per share on a 29.3% rise in revenues.
Netflix (NFLX)
Netflix (NASDAQ:NFLX) stock has been among the harder hit of the “FAANGs” in recent months. This is especially true after Netflix stock suffered a peak-to-trough decline of nearly 36% from the high set in late June. The fall was the result of ongoing nervousness of production costs and intensifying competitive pressure. But amid the price meltdown, valuations are looking attractive again with RBC analysts recently taking to CNBC to suggest the tech stock could double in the coming year from its current level.
The company will next report results on Jan. 15 after the close. Analysts are looking for earnings of 24 cents per share on revenues of $4.2 billion. When the company last reported on Oct. 16, earnings of 89 cents per share beat estimates by 21 cents on a 34% rise in revenues.
Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) shares are enjoying a nice bounce off of their 200-day moving average, setting up a test of the early October high near $115, which would be worth a gain of roughly 7% from here. With the technical bounce, the uptrend Microsoft stock has enjoyed since the summer of 2016 remains intact amid ongoing enthusiasm for its cloud computing business.
MSFT will next report results on Jan. 23 after the close. Analysts are looking for earnings of $1.09 per share on revenues of $32.2 billion. When the company last reported on Oct. 24, earnings of $1.14 per share beat estimates by 18 cents on an 18.5% rise in revenues.
Twitter (TWTR)
Twitter (NYSE:TWTR) stock is popping back up and over its 200-day moving average, rising nearly 40% from the lows seen just a few weeks ago to challenge the highs set in late August. A return to the highs set back in June would result in another gain of nearly 40% from here. Analysts at Aegis Capital recently raised their price target to $41 on improving sales execution and other evidence the company’s business fundamentals are improving.
TWTR will next report results on Jan. 24 before the bell. Analysts are looking for earnings of 15 cents per share on revenues of $843.02 million. When the company last reported on Oct. 25, earnings of 21 cents per share beat estimates by 7 cents on a 28.5% rise in revenues.
Alphabet (GOOG)
Shares of Google parent Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) are rising up off of a test of the late March low near $1,000, setting up a possible test of the falling 50-day and 200-day moving averages. The company had been hit by worries over the possibility that earnings are peaking, growing political pushback from the Trump Administration over allegations of bias and work on a censored version of its search engine for the Chinese marketplace. But as recently noted by RBC analysts, advertising revenue growth remains strong.
Alphabet will next report result son Jan. 24 after the close. Analysts are looking for earnings of $11.01 per share on $31.40 billion in revenue. When the company last reported on Oct. 25, earnings of $13.06 beat estimates by $2.65 per share on a 21.5% rise in revenues.
As of this writing, William Roth did not hold a position in any of the aforementioned securities.
