The prices of technology company stocks have been soaring because investors are betting on the industry’s growth prospects amid the resurgence of COVID-19 cases. While the passage of an infrastructure bill in the Senate yesterday shifted investors’ focus to cyclical stocks, the reimposition of social distancing norms should drive the tech industry’s performance in the near term. Thus, we believe tech stocks SPS Commerce (NASDAQ:SPSC), Nova (NVMI), Methode Electronics (NYSE:MEI), and OSI Systems (NASDAQ:OSIS) should reach fresh highs soon. Let’s evaluate these names more closely.The resurgence of COVID-19 infections due to the Delta variant’s spread has renewed investor interest in tech stocks. Furthermore, the ongoing digital transformation of virtually every industry has highlighted the importance of technology over the past few months. Consequently, the tech-heavy Nasdaq composite has gained 10.9% over the past three months, outperforming the broader S&P 500 index’s 5.8% returns.
The big infrastructure bill recently passed in the U.S. Senate has switched investors’ focus to cyclical stocks. Nevertheless, concerns regarding the resurgence of COVID-19 cases are expected to boost investments in tech stocks in the near term.
Given this backdrop, we think surging tech stocks SPS Commerce, Inc. (SPSC), Nova Ltd. (NVMI), Methode Electronics, Inc. (MEI), and OSI Systems, Inc. (OSIS) could hit fresh price highs soon.