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Election fever and its aftermath has been rising and pulling the stock market along with it. The last five days have seen the Nasdaq, Dow Jones and S&P 500 dipping and then rising to varying degrees. The Dow jumped 4.9%, but the S&P 500 and Nasdaq also moved up 3.8% and 3.0%, respectively.
Technology bellwethers that thrive on international trade and depend on a diverse talent pool have seen their shares plummeting, but the excitement is likely to be short-lived as investors come to realize that the President-elect’s investment portfolio includes Apple (AAPL) , Microsoft, General Electric, Alphabet, Gilead and J&J among others. Renewed faith in the big companies will be good for the sector as a whole, but by then we might miss a bargain.
So here is a list of tech companies that are worth investing in right now:
Digitalglobe Inc. (DGI )
DigitalGlobe is a global provider of commercial high-resolution earth imagery products and services. Last month, it entered into a definitive agreement to acquire the Radiant Group, which offers similar solutions on geospatial technology, big data analytics and intelligence analysis to the federal government. Radiant counts the National Reconnaissance Office, National Geospatial-Intelligence Agency, Defense Intelligence Agency, Special Operations Command and other government agencies as important customers.
DigitalGlobe conducts its business through two segments: Defense and Intelligence, and Commercial, so the Radiant acquisition should strengthen the Defense business. With President-elect Trump likely to increase intelligence spending, this stock should be a net beneficiary.
This Zacks Rank #1 stock is up 13.34% in the last five days. But it’s likely to head higher given the estimated long-term growth rate of 10.67%, which is more than double the estimated industry average of 5.2%. It also has a good track record, having topped the Zacks Consensus Estimate by 384.7% in the last four quarters.
MKS Instruments Inc (MKSI )
MKS Instruments makes gas metrology solutions used in semiconductor manufacturing operations. It also makes semiconductors, optical filters and fiber optics cables, magnetic and optical storage devices and media, solar panels, eyeglasses, architectural glass, cutting tools, and freeze-dried pharmaceuticals.
This Zacks Rank #1 stock is up 2.56% in the last five days. Further upside appears to be in the cards because the company’s long-term growth rate of 15.67% is greater than the estimated industry average of 14.0% while its PEG of 1.10X is also lower than the industry average of 1.54X. Its earnings have topped the Zacks Consensus Estimate at an average rate of 26.8% in the last four quarters.
Bruker Corp (BRKR )
Bruker Corporation is another metrology and diagnostics company. It operates in two segments: the life science and analytical (LSA) systems segment, and the international advanced superconductor (IAS) segment. It offers life science tools, mass spectrometry instruments as well as chemical, biological, radiological, nuclear and explosive (CBRNE) detection products.
The Zacks Rank #2 stock is up 7.55% in the last five days. Moreover, its long-term growth rate of 12.1% is more than the estimated industry average of 10.3% while its PEG of 1.68X is lower than the estimated industry average of 2.31X. Its average earnings surprise in the last four quarters is 37.69%.
NVIDIA Corporation designs, develops and markets a top-to-bottom family of award-winning 3D graphics processors, graphics processing units and related software that set the standard for performance, quality and features for every type of desktop personal computer user, from professional workstations to low-cost computers. Its GPU solutions are also popular in the high-end, high performance computing segment of the cloud.
The Zacks Rank #1 company’s shares barely moved since the election news but have shot up 25.7% as of this writing following blockbuster results. Its long-term growth rate of 10.3% is ahead of the industry average of 9.9% while its PEG ratio of 3.65X is only slightly ahead of the industry average of 2.98X. Besides, it has topped the Zacks Consensus Estimate at an average rate of 28.53% in the last four quarters.
Cirrus Logic (CRUS )
Cirrus Logic supplies high performance analog and advanced mixed-signal chips. The company’s products, sold under its own name and the Crystal brand, enable system-level applications in mass storage, audio and precision data conversion. The portable audio segment targets mobile devices including smartphones, tablets, digital headsets, wearables, smart accessories and portable media players. The non-portable audio segment targets the consumer market, including smart home applications, and the automotive, energy and industrial markets
The Zacks Rank #1 stock is down 2.52% in the last five days. The company’s long-term growth rate of 12.93% trails the industry average of 16.7%, but its PEG ratio of 1.17X is significantly lower than the industry average of 2.99X, indicating a buying opportunity. Also note that its average earnings surprise in the last four quarters is 53.68%.
The leading social networking website needs no introduction. Facebook has grown by connecting people on its platform and also helping brands reach customers. The company’s broad reach across both developed and developing markets makes it an attractive platform for content providers and advertisers alike. It has gone from strength to strength with other leading networking platforms like WhatsApp and Messenger, monetizing which will lead to even greater revenue.
The Zacks Rank #2 stock is down 7.99% in the last five days. But most of the concern is with respect to its ability to acquire talent in future as well as its determination to increase investments in unproven bets. What do you expect of a growth stock anyway? The concerns also seem a bit overdone if you consider that its long term growth rate of 16.6% dwarfs the industry average of 1.3% while its PEG is very reasonable at around 1.3X. Its four-quarter average earnings surprise of 21.1% is also good.