4 Explosive Tech Stocks to Buy in Q2 2022
Despite the Fed’s hawkish stance, tech stocks have regained a degree of price stability of late. Since investors seem to have absorbed most of the market negatives, the industry might rebound soon on steady demand for tech products and services. According to the Computing Technology Industry Association, the U.S. tech industry is estimated to register a 2% increase in jobs this year.
With continuing hybrid lifestyles and rapid worldwide digitization, the demand for tech products is expected to soar. Investors’ interest in the tech industry is evidenced by the Technology Select Sector SPDR ETF’s (XLK) 7.8% returns over the past month compared to SPDR S&P 500 Trust ETF’s (SPY) 5.7% returns.
Given this backdrop, we think it could be wise to bet on fundamentally strong tech stocks Avid Technology, Inc. (AVID), Box, Inc. (BOX), Rambus Inc. (RMBS), and Celestica Inc. (CLS). They have each gained more than 5% in price year-to-date because of their solid growth attributes and are rated Strong Buy or Buy in our POWR Ratings system.
Avid Technology, Inc. (AVID)
Together with its subsidiaries, AVID in Burlington, Mass., develops, markets, and supports software and integrated solutions for video and audio content creation, management, and distribution worldwide.
On March 1, 2022, AVID’s CEO and president, Jeff Rosica, said, “As we begin 2022, we continue to see strength across the end markets for our solutions, and we will continue to make selective investments in new products and innovation to enable Avid to continue delivering the industry-leading solutions that our customers depend on and to achieve our company strategy and our long-term growth and profitability targets.”
AVID’s total net revenues came in at $119.06 million for the fourth quarter ended Dec. 31, 2021, up 14.2% year-over-year. Its non-GAAP net income came in at $20.87 million, up 37% year-over-year, while its non-GAAP EPS was $0.46, up 39.4% year-over-year.
AVID’s 19.95% forward EBITDA growth is 19.1% higher than the 16.75% industry average.
AVID’s revenue is expected to increase 8.1% to $475.71 million in 2023. Its EPS is estimated to increase 17.7% to $1.73 in 2023. Also, it surpassed EPS estimates in each of the four trailing quarters. The stock has gained 12.5% in price year-to-date to close yesterday’s trading session at $35.31.
AVID’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall B rating, which indicates a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
AVID has an A grade for Quality and a B grade for Growth and Sentiment. Within the Technology – Services industry, it is ranked #7 of 81 stocks. Click here to see the additional POWR Ratings for Value, Momentum, and Stability for AVID.
Note that AVID is one of the few stocks handpicked currently in the Reitmeister Total Return portfolio. Learn more here.
Box, Inc. (BOX)
BOX provides a cloud content management platform that enables organizations of various sizes to manage and share their content from anywhere on any device. The Los Altos, Calif.-based company has more than 105,000 paying organizations, and its solution is…
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