Yahoo Finance 5 Top Tech Stocks to Win Big With Nasdaq on a Roll
The Nasdaq Composite eked out a fifth straight record close on Jun 14 as the tech juggernaut rolled on. The tech-laden index increased by 0.1% to close at 17,688.88, powered by gains in Adobe Inc. ADBE and other tech behemoths. This year, the index has soared 17.8%, much more than the 30-stock Dow Jones Industrial Average’s meager gain of 2.4%.
Last week, tech stocks were among the few to have emerged as winners despite being in overbought territory. This doesn’t mean that tech stocks will face a looming downward trend. Quite the reverse, tech stocks are well-poised to scale upward, banking on interest rate-cut optimism.
After rapidly increasing in the first quarter, consumer and wholesale price pressures have eased in recent times. For May, the consumer price index showed no month-over-month increase, while the yearly increase of 3.3% was less than the analysts’ estimate of a 3.4% annual rate. The monthly and annual increase in core CPI that eliminates the volatile food and energy costs, too, fell short of estimates.
Wholesale prices unpredictably declined last month, a tell-tale sign that inflation is pulling back. The producer price index declined 0.2% month over month in May, following an increase of 0.5% in the prior month. This means that the Federal Reserve won’t be raising interest rates this year and will remain less aggressive. Lest we forget, inflationary pressure since the coronavirus pandemic compelled the Fed to implement a series of interest rate hikes.
Nonetheless, in the recent two-day monetary policy meeting, the Fed has kept its benchmark fed funds rate unchanged and has projected an interest rate cut this year. Rate cuts, by the way, are a blessing in disguise for tech stocks. This is because a lower interest rate environment doesn’t impact a tech stock’s future cash inflows. Additionally, interest rate cuts decrease borrowing costs, which boosts profit margins.
Hence, banking on these positives, it’s judicious for astute investors to place their bets on tech stocks listed on the Nasdaq that can make the most of the index’s current upward journey. Some of the notable names are Byrna Technologies Inc. BYRN, CareCloud, Inc. CCLD, American Superconductor Corporation AMSC, Alphabet Inc. GOOGL and NVIDIA Corporation NVDA. They have a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Byrna Technologies is a non-lethal technology company. Byrna Technologies currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has increased 7.1% over the past 60 days. BYRN’s expected earnings growth rate for the current year is 27.8%.
CareCloud provides healthcare technology solutions. CareCloud currently has a Zacks Rank #2. The Zacks Consensus Estimate for its current-year earnings has increased 158.6% over the past 60 days. CCLD’s expected earnings growth rate for the current year is 112.4%.
American Superconductor is a leading energy technologies company. American Superconductor currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has increased 66.7% over the past 60 days. AMSC’s expected earnings growth rate for the current year is 400%.
Alphabet is one of the most innovative companies in the modern technological age. It offers various products and platforms across the globe. Alphabet presently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has increased 12.1% over the past 60 days. GOOGL’s expected earnings growth rate for the current year is 31% (read more: Bill Ackman’s Favorite "Magnificent 7" Stock is a Big Winner).
NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit, or GPU. NVIDIA currently has a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has increased 12.6% over the past 60 days. NVDA’s expected earnings growth rate for the current year is 106.2%.
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American Superconductor Corporation (AMSC) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Alphabet Inc. (GOOGL) : Free Stock Analysis Report
Byrna Technologies Inc. (BYRN) : Free Stock Analysis Report
CareCloud, Inc. (CCLD) : Free Stock Analysis Report