3 Best Tech Stocks to Buy if the Stock Market Recovers
The market is enjoying a solid rebound, with the S&P 500 closing over 4,000 last week. With stocks rallying, next week will be significant, with crucial CPI data, an FOMC meeting, and options expiry, which aggravates volatility.
Stocks and the Market Condition
The market bottomed out at around 3,600 in mid-June. From then, it rose 18% to 4,300 before falling back after Fed Chair Powells hawkish speech in Jackson Hole. It fell as low as 3,900 earlier this week but found support at these levels and finished the week at over 4,000.
There is an unusual mix of bullish and bearish factors at work. In the United States, inflation seems to have peaked, but real-time economic indicators such as unemployment claims and consumer expenditure are increasing. However, opposing forces such as a hawkish Fed and a deteriorating global economy persist.
In this challenging climate, investors should explore tech equities, which have been in a bear market for more than a year and would benefit from dropping inflation. Here are three excellent tech stocks to consider for investors:
Veeva Systems Inc.
Veeva Systems Inc. (NYSE:VEEV) is a software and cloud computing firm with increased growth and improved profits. Unlike many other stocks in the software and cloud area, there are substantial entry hurdles, which means there is less competition. It results in a deep and broad moat for investors and high rates of recurring income.
Expedia (NASDAQ:EXPE) is one of the worlds most prominent online booking organizations. It has many parts, including Expedia, Vrbo, Hotels.com, Orbitz, Travelocity, and Wotif. EXPE, like many other travel stocks, is witnessing a significant increase in sales and reservations due to peoples pent-up desire for travel. However, the stock price has been stagnant owing to market concerns about a slowdown and possibly recession. Long-term investors may ignore this and concentrate on the general expansion of the internet booking industry.
The stock is appealing due to its mix of growth and value. EXPE has a forward P/E ratio of 10.2, which is lower than the S&P 500.
Qualys (NASDAQ:QLYS) is a forerunner and market leader in cloud-based IT, security, and compliance solutions. Qualys Cloud Apps, Threat Protection, Continuous Monitoring, Multi-Vector Endpoint Detection and Response, and Web Application Scanning are among its offerings.
QLYS has been an outstanding outperformer, with a YTD loss of 10% and a year-to-date gain of 19.8%. The main reason is that, unlike many other IT and cloud-based businesses, it has continued to generate exceptional earnings and free cash flow growth. Furthermore, the requirement for security in cloud-based apps is growing faster than in other areas, and QLYS is one of the leading businesses in this field.
Featured Image- Megapixl @ Rafaelhenriquepress
Author: Okoro Chinedu
Market Jar Media Inc.
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