Inflation woes refuse to abate, with continued expectations of rate hikes at upcoming Federal Reserve policy meetings to contain inflationary pressures, leading to year-to-date gains of 14.8%, 26.16%, and 26.16%, respectively. The market is nervous as shown by 18.15%. -Dow Jones Industrial Average, Nasdaq Composite, S&P 500 down.
The Consumer Price Index (CPI, a measure of inflation) rose 8.3% year-on-year in August. The figure beat analysts’ expectations of 8.1%, even though gasoline prices fell 10.6%. The Fed had already signaled last month that it would keep raising rates until inflation was at least close to its 2% target rate. The central bank’s hawkish stance in trying to keep very high inflation under control has fueled fears of an economic slowdown.
Markets may remain volatile until late 2022, but there are opportunities to profit in the stock market if well-researched investment strategies are employed. Such strategies enhance investors’ security selection capabilities, stabilize portfolios, and significantly reduce the impact of risk and uncertainty.
A broadly diversified technology sector has the potential to weather the woes of the recession and minimize the expected contraction of the global economy despite rising interest rates and supply chain stagnation.
Every drop in the market presents a good opportunity to enter the same market and profit on some stocks, especially the Zacks computer and technology sectors. ST Microelectronics (STM – free report), Fortinet (FTNT – free report), Zuscaler (ZS – free report) and synopsis (SNPS – free report). These stocks are very attractive at their current valuations. Many of these stocks have significant upside potential for the remainder of 2022. In particular, companies offering hybrid-working technologies, cloud services, and cybersecurity solutions that support telecommuting, online learning, and remote health check-ups are on the rise.
our recommendations
With the help of the Zacks Stock Screener, we’ve selected four large tech stocks (market capitalization over $10 billion) that are poised to grow in the second half of 2022. Turbulent economic and business environment.
Aside from a significant revision to earnings forecasts, there are favorable combinations of A or B VGM scores and #1 (strong buy) or #2 (buy) Zacks rankings. A complete list of today’s Zacks number 1 stocks can be found here.
According to Sachs’ proprietary methodology, stocks with the perfect mix of these factors offer solid investment opportunities.
STMicroelectronics NV The company benefits from strong demand for its robust microcontrollers, sensors, power supplies, analog and other connectivity products. The prevalence of motion and environmental sensors, time-of-flight ranging sensors, wireless charging products, touch display controllers, and secure solutions in smartphones is expected to boost performance in the personal electronics market in the near future. Design win momentum for smartwatches and other wearables is positive.
Increased demand for the automotive product group across all regions is expected to boost the company’s performance for the remainder of 2022. Strong design wins for ST power modules in electric vehicle applications could drive growth in the automotive market in the short term. Enhanced customer engagement in cellular and satellite communications infrastructure drives his STM performance in the communications equipment, computer and peripherals markets.
The company boasts a Zacks rank of #1 with a VGM score of B. The Zacks consensus estimate for 2022 earnings is $3.88 per share, and he’s up 16.5% over the past 60 days.
synopsis benefits from strong design wins with its robust product portfolio. The company’s penetration into new and growing AI chip companies is a key growth driver. Demand for Synopsys solutions is skyrocketing given the growing need for enhanced security measures and the growing security threats of interconnected systems powered by software. The good news is that software-based verification is growing strongly, both from traditional semiconductor companies and from start-up systems companies focused on in-house design.
The increasing trend of working and learning from home has increased the demand for bandwidth. The Synopsys Fusion Design Platform, launched last November, is seeing high demand and producing strong results. Rising demand for advanced technology, design, IP and security solutions also creates a solid outlook. The company’s Verification Continuum platform is steadily witnessing excellent demand and competitive wins. In addition, ZeBu Server 4 products have been widely adopted in the design of storage, networking and AI chips.
Synopsys, who ranks second in Zacks rank, has a VGM score of B. Zacks Consensus’ earnings forecast for fiscal 2022 is up 4.4% to $8.84 per share over the past 60 days.
Fortinet has benefited from the increasing adoption of network and security platforms, driven by the rise of hybrid work policies among leading enterprises. This Zacks Rank 2 company continues to win deals by offering unique cyber safety solutions that reliably block attacks and malicious content. The company’s Fortinet Security Fabric, cloud, and software-defined wide area network (SD-WAN) offerings are currently experiencing strong growth.
Growing adoption of SD-WAN solutions is a key long-term growth driver for Fortinet. According to the latest Future Market Insights report, the market size of SD-WAN solutions is likely to reach $53.8 billion by 2032, from $3.4 billion in 2022, and his It shows a CAGR of 31.6%. With only a handful of vendors offering security and SD-WAN solutions, Fortinet is well positioned to capitalize on the growing opportunities in the market.
Fortinet has a VGM score of B. The Zachs consensus estimate for 2022 earnings is $1.05 per share, up one penny over the past 60 days.
Zuscaler is benefiting from increased demand for cybersecurity solutions due to mass data breaches. Increasing demand for privileged access security in digital transformation and cloud migration strategies is a key growth driver. Zscaler’s portfolio strengths will help you compete and add users. In addition, Zscaler’s strong presence across industries including banking, insurance, healthcare, public sector, pharmaceuticals, telecommunications services, and education protects Zscaler from the negative effects of the pandemic. Zscaler is well positioned to capitalize on the growing opportunities in the SD-WAN solution market. Additionally, the company and his collaborations with both VMware and Silver Peak secure SD-WAN deployments.
The Zacks Rank 2 company has also made several significant acquisitions to build its product portfolio and drive growth. The Smokescreen acquisition strengthens Zscaler’s Zero Trust Exchange and Advanced Active Defense capabilities. The Trustdome purchase will help Zscaler deliver a comprehensive solution to reduce the public cloud attack surface and improve security posture.
Zscaler has a VGM score of B. Zacks Consensus estimates 2022 earnings at $1.17 per share, up 13.6% over the past 60 days.
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