3 Top-Ranked Tech Stocks With Big Growth - Yahoo Finance

techsooper.blogspot.com

Technology stocks are known for their breakneck growth, providing investors with serious gains along the way.

And in 2023, the Zacks Computer and Technology sector has staged a significant rebound, up nearly 20% and crushing the S&P 500’s performance.

Image Source: Zacks Investment Research

For those interested in the sector’s relative strength, three technology stocks – Adobe ADBE, Broadcom AVGO, and ASML Holdings ASML – could all be considered.

All three sport a favorable Zacks Rank, indicating bullish sentiment from analysts. In addition, all three are forecasted to witness positive earnings growth, providing the cherry on top. Let’s take a deeper dive into each one.

Adobe

Adobe is one of the world’s most extensive and diversified software companies. It offers many tools tailored toward creative individuals, including photographers, video editors, etc. Currently, the stock is a Zacks Rank #2 (Buy).

Adobe’s growth profile is stellar; the Zacks Consensus EPS Estimate of $15.41 for its current fiscal year (FY23) implies year-over-year earnings growth of 12%. And in FY24, earnings are projected to improve a further 12.5%.

The projected earnings growth comes on top of forecasted Y/Y revenue climbs of 9.1% in FY23 and 10.8% in FY24.

Image Source: Zacks Investment Research

The company last reported on March 15^th, with results coming in better than expected; ADBE reported earnings of $3.80 per share, nearly 4% ahead of expectations. Further, quarterly revenue totaled $4.7 billion, modestly ahead of expectations and improving 9% year-over-year.

Image Source: Zacks Investment Research

Broadcom

Broadcom is a premier designer, developer, and global supplier of a broad range of semiconductor devices. The stock presently sports a favorable Zacks Rank #2 (Buy).

Image Source: Zacks Investment Research

Broadcom shares provide exposure to technology paired with a passive income stream; AVGO’s dividend presently yields 2.9% annually, more than double the Zacks Computer and Technology sector average.

Impressively, the company has grown its payout by more than 20% over the last five years, reflecting a commitment to increasingly rewarding shareholders.

Image Source: Zacks Investment Research

Similar to ADBE, it’s hard to ignore the company’s growth trajectory, with earnings forecasted to climb 10% in its current fiscal year (FY23). And in FY24, estimates allude to a further 6% of growth within the bottom line.

Image Source: Zacks Investment Research

ASML

ASML is a world leader in manufacturing advanced technology systems for the semiconductor industry. The company has seen its earnings outlook inch higher across nearly all timeframes, helping land it into a Zacks Rank #2 (Buy).

Like AVGO, ASML shares come with the perk of passive income, with ASML’s annual dividend currently yielding 0.8%.

While the yield remains on the lower end of the spectrum, ASML’s 34% five-year annualized dividend growth rate helps pick up the slack in a big way.

Image Source: Zacks Investment Research

Further, the company’s 74.3% trailing twelve-month return on equity is worth highlighting, reflecting a higher efficiency level in generating profits from existing assets.

Image Source: Zacks Investment Research

Bottom Line

Tech stocks have staged a remarkable rebound in 2023, displaying significant momentum after a forgettable 2022.

And for those who want to tap into the relative strength of the sector, all three stocks above – Adobe ADBE, Broadcom AVGO, and ASML Holdings ASML – could be great considerations.

All three have witnessed positive earnings estimate revisions and boast positive growth trajectories, undoubtedly an attractive pairing.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

ASML Holding N.V. (ASML) : Free Stock Analysis Report

Adobe Inc. (ADBE) : Free Stock Analysis Report

Broadcom Inc. (AVGO) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Adblock test (Why?)