After months of volatility, the technology sector appears to have found its legs, and tech stocks are poised for a new breakout.
Tech stocks, undoubtedly, have been the star with buying focus on household names. The group is getting attention ahead of an expected rebound in worldwide manufacturing activity and easing global tensions.
And now that the trade war, which has been the cause for much drama throughout the sector, may be nearing an end, this could certainly greenlight recently embattled tech stocks, including Chinese and American stocks alike. Nevertheless, speculators can take a stand now before the onslaught of excessive buying takes over.
As such, we’re eyeing a few tech stocks with strong financials, each poised to outperform in the weeks ahead amidst restored optimism for calmer geopolitical waters ahead.
# 1 Alibaba (NYSE: BABA)
No Chinese company is more well-known than Alibaba (NYSE: BABA). It controls the marketplace in China with a 58% share of all online retail sales. Its e-commerce platform is underpinned by two markets, Taobao, and Tmall.
Over the course of 2018, the performance of BABA stock has mirrored that of Facebook (NASDAQ: FB), though the company’s market cap, currently $490 billion, is still short of Facebook’s $506 billion.
Alibaba is anticipated to announce its quarterly results on May 03, and is expected to report 0.77 cents per share of profits on $13.45 billion of income. For the same quarter in 2018, its revenue was $9.74 billion. This growth does not come at the sacrifice of revenue, either. With Alibaba, investors are seizing Amazon-like growth with Apple’s (NASDAQ: AAPL) profitability.
BABA has mixed price targets, with most settling around or above $200, compared to its present price of $187.55 as of closing on April 17. With over 18 experts providing the company a buy rating, consisting of analysts from Morgan Stanley, HSBC and CitiGroup, BABA is realizing its market potential … and best of all, it’s still early sufficient to get in for possibly mind-blowing long-lasting gains.
# 2 Apple (NASDAQ: AAPL)
While Apple has published its own mind-blowing long-term gains, lots of market veterans are suggesting it’s not too late to get in the game. The business will next report outcomes on April 30 after the close. Experts are looking for profits of $2.37 per share on earnings of $57.5 billion.
The business’s typical income growth reversed to a decline in its fiscal Q1, falling nearly 5% year over year. Making matters worse, earnings were a whopping $6.7 billion shy of management’s preliminary estimates for the period. The stumble was principally due to softer-than-expected iPhone sales in the Greater China market. However, that’s just a small piece of the larger puzzle.
Apple shares jumped on April 17th, following the settlement of the multi-year fiasco with Qualcomm, and buzz is growing around new product offerings. Apple still retains a moderate buy position from top market experts, including pros from Merrill Lynch and more.
# 3 Yandex (NASDAQ: YNDX).
The Russian search giant is often overlooked with FANG giants and Chinese breakout companies taking much of the spotlight in tech stocks, however, make no mistake, Yandex is a company to watch.
Yandex (NASDAQ: YNDX) has extraordinary fundamental characteristics. Upon building up an investment case for a stock, analysts are taking a look at different aspects. When it comes to YNDX, it is a company with terrific financial health, and as a bonus, a remarkable track record of efficiency.
Yandex has partnered with Uber for an on-demand ride-hailing venture, has grown its Yandex Cloud service, and boasts one of the largest job-hunting sites in Russia. These services are a play to deepen existing relationships and additional means of monetizing its user base.
Yandex is expected to report profits on 04/25/2019 before market open. The report will be for the fiscal Quarter ending Mar 2019. According to Zacks Financial investment Research, based upon 2 analysts’ projections, the consensus EPS projection for the quarter is $0.17. The reported EPS for the same quarter last year was $0.21.