3 best tech stocks to buy for a market rebound

The market is enjoying a nice rebound as the S&P 500 closed last week above the 4,000 level. Next week is sure to prove important with a very important CPI report, an FOMC meeting and options expiration tending to exacerbate volatility. To recap how we got here: the market bottomed out in mid-June around 3,600. From there, it rose 18% to reach 4,300 before dipping following Fed Chairman Powell’s hawkish speech in Jackson Hole. It fell as low as 3,900 earlier this week, but found support at these levels and ended the week above 4,000. .



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The market is enjoying a nice rebound as the S&P 500 closed last week above the 4,000 level. Next week is sure to prove important with a very important CPI report, an FOMC meeting and options expiration tending to exacerbate volatility.

To recap how we got here: the market bottomed out in mid-June around 3,600. From there, it rose 18% to reach 4,300 before dipping following Fed Chairman Powell’s hawkish speech in Jackson Hole. It fell as low as 3,900 earlier this week, but found support at these levels and ended the week above 4,000.

There is an interesting range of bullish and bearish forces competing. Inflation appears to have peaked in the US as real-time growth measures such as jobless claims and consumer spending are increasing. However, bearish factors remain such as an aggressive Fed and a slowing global economy.

In this challenging environment, investors should consider tech stocks as they have been in a bear market for more than a year and would be the beneficiaries of declining inflation. Here are the top 3 tech stocks that investors should consider:

Veeva Systems (VEEV)

VEEV is at the crossroads of several booming bullish trends. These include business software, cloud computing, healthcare, and pharmaceuticals.

The growth of the health sector is fueled by demographics due to an aging population in developed countries around the world, increased public spending and the constant flow of innovations leading to new treatments. Health expenditure as a percentage of GDP rose to 18% in 2020, from less than 12% in 1990.

However, VEEV is actually a software and cloud computing company that offers more growth and higher margins. Unlike many titles in the software and cloud space, there are high barriers to entry, which means limited competition. For investors, it results in a deep and wide moat and leads to high recurring revenue rates.

Given these positives, it’s no surprise that VEEV has an overall B rating, which results in a purchase in our POWR rating system. It also has an A for quality as it is one of the leading titles in a large addressable global market with only a handful of competitors.

VEEV also has a B for growth makes sense, given its double-digit earnings and revenue growth and positioning at the intersection of two large and growing markets: healthcare and cloud computing. Click here to see more VEEV POWR ratings, including ratings for Value, Momentum, and Stability.

Expedia (EXPE)

EXPE is one of the largest online booking companies in the world. It operates across multiple segments including Expedia, Vrbo, Hotels.com, Orbitz, Travelocity and Wotif. Additionally, it offers a range of travel and non-travel verticals, including corporate travel management, airlines, travel agents, online retailers, and financial institutions.

Like many travel tickets, EXPE is seeing a huge increase in revenues and bookings due to people’s pent-up demand for travel. However, the stock price languished due to market concerns of a slowdown and potential recession. Long-term investors can look beyond and focus on the overall growth of the online booking industry.

Its combination of growth and value makes the stock quite attractive. EXPE has a forward P / E of 10.2, which is significantly cheaper than the S&P 500. Most impressive is the analyst’s forecast of $ 9 per share earnings in 2023 and P / FCF of 4.

These are among the main reasons why EXPE is rated B which equates to a Buy rating. The POWR Ratings are calculated considering 118 distinct factors, with each factor optimally weighted. B-rated stocks recorded an average annual performance of 21.1%, which compares favorably with the S&P 500’s average annual gain of 8.0%.

Qualifications (QLYS)

QLYS is a pioneer and leading provider of cloud-based IT, security and compliance solutions. The company offers Qualys cloud apps, threat protection, continuous monitoring, multi-vector endpoint detection and response, and web application scanning, among other solutions. Its clients include businesses, government agencies, and small and medium-sized businesses across a variety of industries.

QLYS has been an impressive outperformer as it has only fallen 10% year to date and has recorded a 19.8% increase over the past year. The main factor is that, unlike so many other tech and cloud-based stocks, it has continued to see impressive growth in terms of earnings and free cash flow. Furthermore, the need for security regarding cloud-based applications continues to grow at a faster rate than in other markets, and QLYS is one of the leading companies in this sector.

In the last quarter, QLYS recorded revenue growth of 17% and an increase in operating income of 27%. In the next quarter, analysts expect this pace of growth to continue with an 18% increase in revenues and a 31% increase in operating income.

9 “MUST OWNGrowth stocks

What makes them “MUST OWN“?

All 9 choices have solid foundations and are experiencing tremendous momentum. They also contain a winning combination of growth and value attributes that creates a catalyst for strong outperformance.

More importantly, each recently earned a Buy rating from our coveted POWR rating system, where A-rated stocks gained + 31.10% annually.

Click below now to see these top performing stocks with exciting growth prospects:

9 “MUST OWNGrowth stocks


ON stock closed Friday at $ 71.67, up $ 1.12 (+ 1.59%). Since the beginning of the year, ON has gained 5.52%, against a -13.76% increase in the benchmark S&P 500 index over the same period.


About the author: Jaimini Desai

Jaimini Desai has been a financial writer and journalist for nearly a decade. His goal is to help readers identify risks and opportunities in the markets. He is the Chief Growth Strategist of StockNews.com and the publisher of the POWR Growth and POWR Stocks Under $ 10 newsletters. Find out more about Jaimini’s background, along with links to his most recent articles.

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