The Dow Jones, Nasdaq, and S&P 500 have all experienced losses this year of 13.8%, 25.66%, and 17.66%, respectively. Despite a better-than-expected Q2 2022 earnings season, investors have been frustrated by the growing pessimism surrounding a recession, inflation, and cluttered supply chains that pull down individual businesses and the broader economy.
So, where is the silver lining for investors looking to utilize this time to make some investments? Dividend stocks are usually a go-to, but there are other options that – considering the discounted prices – should provide noticeable gains in good time. Financial resilience is what makes them attractive. Today, I’ll unveil the details on three technology stocks that create excellent opportunities to “buy the dip.”
Let’s also keep in mind that daily advancements and technological developments greatly influence the performance of tech stocks. Significant advantages include recent innovations in cloud computing, the use of AI, the implementation of 5G, electric vehicles, AR/VR, and more.
Now, let’s break down three tech stocks that have consistently bested forecasts and show solid year-over-year growth, each coming with a consensus buy rating from top economists:
Synopsys Inc (SNPS)
Synopsys, Inc (SNPS) is a company that provides software and consulting services in the electronic design automation business. SNPS works in two divisions: Semiconductor and System Design and Software Integrity. EDA, IP, and System Integration are all part of SNPS’s Semiconductor and System Design category. SNPS’ Software Integrity portion assists enterprises in intelligently addressing software risks throughout their portfolio and at all phases of the application lifecycle by aligning people, processes, and technology. Aart J. de Geus, Bill Krieger, Dave Gregory, and Rick Rudell formed SNPS in December 1986, located in Mountain View, CA.
SNPS has a solid track record of exceeding Wall Street analysts’ projections regarding quarterly earnings reports. SNPS beat EPS and revenue projections by 5.45% and 2.89%, respectively. The quarter prior, it was EPS by 5.32% and revenue by 1.69%. Year-over-year, SNPS shows solid numbers: Revenue – 18.03%; Net Income – 12.07%; EPS – 12.6%. SNPS shows $1.3 billion in sales for the current quarter, at $1.84 per share. The consensus 12-month price target for SNPS from analysts providing annual predictions is 425.00, with a high of 455.00 and a low of 405.00. The median forecast is a 30.00% increase from its most recent price, and SNPS wears its buy rating proudly.
Cadence Design Systems Inc (CDNS)
Cadence Design Systems, Inc (CDNS) creates electrical gadgets and integrated circuits. CDNS’ offerings include software, hardware for emulation, electrical design automation, and intellectual property, often known as verification IP and design IP. CDNS does business through the following geographical divisions: Japan, the Americas, Asia, Europe, the Middle East, and Africa. Alberto Sangiovanni, Gudmundur A. Hjartarson, K. Bobby Chao, and K. Charles Janac started CDNS, which is based in San Jose, CA.
CDNS, like SNPS, is no stranger to beating analysts’ earnings forecasts. For the most recent quarter, EPS and revenue were bested by margins of 11.80% and 2.70%, respectively. For the proceeding quarter, CDNS beat EPS by 16.87% and revenue by 5.75%. CDNS shows healthy year-over-year figures: Revenue – 17.75%; Net Income – 19.9%; EPS – 21.43%; Net Profit Margin – 1.82%. CDNS announced a deal to purchase OpenEye Scientific Software for about $500 million in cash, to be made official during the third quarter. CDNS has a consensus price target of 200.00, with a high of 215.00 and a low of 180.00 among analysts providing yearly price estimates. The estimate is a 19.13% increase over current pricing, and the analyst consensus is firmly in favor of a CDNS buy rating.
Vishay Intertechnology Inc (VSH)
Vishay Intertechnology, Inc (VSH) manufactures and sells semiconductors and related components. VSH specializes in the following areas: Diodes, Resistors, Inductors, and Capacitors, considered MOSFETs (metal oxide semiconductor field-effect transistors). VSH’s MOSFET category includes semiconductors that serve as switches to manage power. VSH’s Diodes section makes chips that route, control, and block radio frequency and power signals. This is only a modest sample of VSH’s capabilities. Felix Zandman created the firm in 1962, and VSH’s headquarters are currently in Malvern, PA.
VSH has surpassed economists’ forecasts for the last four consecutive fiscal quarters. VSH beat EPS forecasts by 27.63% in the previous quarter and 22.42% during the last quarter. VSH currently has a dividend yield of 2.13%, with a quarterly payout to shareholders of 10 cents per share. The consensus price target for VSH is 21.00, with a high of 24.00 and a low of 20.00, as reported by analysts providing annual price estimates. The median estimate is up 11.76% from its last price, and VSH’s buy rating has held steady throughout the year.
VSH, SNPS, and CDNS are poised for long-term gains because they are going above and beyond to enhance their products and services through constant innovation and technological advancements – which, as I pointed out in my intro, influences the performance of these kinds of tech stocks.
Read Next: URGENT: Sell these stocks by September 13th
We are weeks away from the biggest stock market event in more than 70 years.
Certain stocks and cryptocurrencies could drop by 80%.
Bonds and funds could drop even further.
Even your social security check could be worth 21% less.
The world’s biggest investors have already begun to get ready.
Billionaire Seth Klarman recently sold 19 stocks in anticipation.
Billionaire David Tepper recently sold 28 stocks in anticipation.
Billionaire George Soros recently sold 56 stocks in anticipation.
