5 Top-Ranked Blue Chip Tech Stocks To Buy In September
Zacks Investment Research | Sep 04, 2019 07:58AM ET
The technology sector, which is benefiting from rapid digital transformation, has been one of the best performing sectors so far this year.
Notably, Technology Select Sector SPDR ETF (NYSE:XLK) has returned 26.7% year to date, reflecting the sector’s strength.
The last few years have witnessed a series of breakthroughs in cloud computing, predictive analysis, AI, self-driving vehicles, digital personal assistants and IoT.
Moreover, the accelerated deployment of 5G technology — the next wireless revolution — is likely to create more opportunities. This will significantly raise demand for high-tech handheld gadgets and micro-processors.
However, the ongoing U.S.-China trade war and a slowing China economy are potent challenges. Therefore, there are chances that small-cap stocks will collapse in the face of aggravated economic slowdown.
With that said, we have highlighted five blue chips with large capital base and solid fundamentals, which may prove to be the best option for investors in the months ahead.
Strategy to Pick Stocks
With the help of our VGM Score of A or B. Our research shows that stocks with a VGM Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
All the five stocks carry a Zacks Rank #2.
Our Picks
Alphabet (NASDAQ:GOOGL) provides web-based search, advertisements, maps, software applications, mobile operating systems, consumer content, enterprise solutions, commerce and hardware products.
The company outpaced the Zacks Consensus Estimate in the trailing four quarters, the average positive earnings surprise being 18.9%. The company has an expected earnings growth rate of 14.3% for the current year. The stock has a VGM Score of B.
The stock has returned 11.9% on a year-to-date basis.
Alphabet Inc. Price and Consensus
Cognizant Technology Solutions Corporation (NASDAQ:CTSH) is a leading professional services company. Its services include digital services and solutions, consulting, application development, systems integration, application testing, application maintenance, infrastructure services, and business process services.
The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, the average positive earnings surprise being 0.59%. The stock has a VGM Score of A.
The stock has lost 3.2% on a year-to-date basis.
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Cognizant Technology Solutions Corporation Price and Consensus
Cognizant Technology Solutions Corporation Quote
Verizon Communications (NYSE:VZ) isone of the largest communication technology companies in the world. The company offers communications, information and entertainment products and services to consumers, businesses and governmental agencies worldwide.
The company outpaced the Zacks Consensus Estimate in the trailing four quarters, the average positive earnings surprise being 2.6%. The company has an expected earnings growth rate of 1.91% for the current year. The stock has a VGM Score of B.
The stock has returned 3.3% on a year-to-date basis.
Verizon Communications Inc. Price and Consensus
Symantec (NASDAQ:SYMC) is known for some of the popular brands in security and utilities. It offers a wide range of application and software products for firewall, virtual private network, virus protection, vulnerability management, intrusion detection and security services.
The company outpaced the Zacks Consensus Estimate in three of the trailing four quarters, the average positive earnings surprise being 18.62%. The company has an expected earnings growth rate of 9.43% for the current year. The stock has a VGM Score of B
Symantec has returned 21.7% on a year-to-date basis.
Symantec Corporation Price and Consensus
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