While the broader market is experiencing turmoil due to the Federal Reserve’s first rate hike since the pandemic, tech companies continue to flourish. Sure, this industry will be more affected by interest rate rises soon. Some contend, however, that this is all part of the process of returning to normalcy. This appears to be the case as the Fed attempts to contain rising inflation this year. Despite this, IT businesses impressively continue to innovate and expand their products.
Take, for example, Google, a subsidiary of Alphabet (GOOGL). The tech behemoth is rumored to be purchasing Raxium, a maker of components for augmented reality (AR) devices. Raxium, in particular, manufactures miniature LEDs for use as displays in AR devices. In principle, Google may be boosting its metaverse-related tech business by doing so. Companies like Meta Platforms (FB), Apple (AAPL), and Microsoft (MSFT) are already investigating these opportunities. This would demonstrate that fascinating new technology areas continue to draw huge companies and a lot of money.
Today, I’ll move away from the usual mega-cap suspects mentioned above and try to find some value in a few other stocks from the tech sector. Despite stock market losses, the tech industry is mostly continuing to grow. With all of this in mind – and given the sense of urgency in the marketplace right now – it doesn’t hurt to look at three solid, reasonably priced buy-rated stocks that are doing well.
Let’s take a glimpse at three tech stocks that the experts say are wise portfolio choices right now:
GitLab Inc (GTLB)
GitLab Inc (GTLB) is a software development firm best known for its DevOps Platform, a single open-source platform that helps companies build better and safer software. GTLB also enables businesses to optimize the total return on software development by quickly and efficiently delivering software. GTLB’s single application offering is more straightforward, resulting in quicker cycle times and providing visibility and control across the DevOps lifecycle.
When GTLB released its fourth-quarter and full-year financial results for 2022, it brought in $77.8 million in income. GTLB claims that clients continue to use its DevOps platform rapidly, with revenue up 69% year-over-year. This expansion is also broad-based, with substantial client additions having an impact. GTLB most recently bested experts’ quarterly EPS and Revenue predictions by 36.48% and 10.68%, respectively. GTLB has a consensus 12-month price projection of 82.33, with a high of 105.00 and a low of 50.00. The forecast indicates a 78.98% increase from current pricing, and GTLB’s buy rating is strong.
Accenture PLC (ACN)
Accenture PLC (ACN) is a global professional services firm specializing in information technology and consulting services. ACN is undoubtedly a pro services leader with cutting-edge digital, cloud, and security skills. ACN is supported by the world’s biggest chain of Advanced Technology and Intelligent Operations centers, bringing together unrivaled knowledge and specialized capabilities across more than 40 sectors.
Financially, ACN has been on fire for the last couple of years, despite the marketplace’s volatility. The most recent fiscal quarter’s overall revenues were $15 billion, up 28% year-over-year. It also achieved double-digit sales growth in North America and Europe, with robust year-over-year gains, all in the green. ACN’s recent earnings report beat experts’ EPS projections by 7.89% and revenue expectations by 2.57%. ACN shows a current EPS of $2.81 per share, with $15.2 billion in sales. ACN has a dividend yield of 1.21%, with a quarterly payout of 97 cents per share. ACN has a price target of 440.00 among the analysts that provide 12-month price estimates, with a high of 475.00 and a low of 350.00. The consensus projection reflects a 37.80% increase, and the analysts’ recommendation is to buy ACN.
Zoom Video Communications Inc (ZM)
Most consumers and businesses are familiar with Zoom Video (ZM) and its services. After all, its cloud communication services have connected individuals worldwide and continue to do so. Even as the global pandemic improves, ZM remains an essential aspect of many people’s lives. In general, ZM’s stock has not performed well in the stock market this year. However, Wall Street experts remain optimistic despite long-term growth worries.
ZM has something you all should know I love to mention by now: It has easily bested analysts’ projections on both EPS and revenue for the last four consecutive fiscal quarters. Most recently, ZM beat EPS predictions by an impressive 20.76% and revenue by a modest 1.57%. Its numbers indicate healthy growth, showing revenue growth of 21.4% and EPS growth of 83.91%. It offers sales of $1.1 billion, at 88 cents per share, until reporting again. ZM has a consensus price target of 165.00 among analysts that provide 12-month price estimates, with a high of 295.00 and a low of 100.00. The consensus estimate reflects an increase of 48.88% over the most recent price, and the consensus also marks ZM with a very sturdy buy rating.
