Yahoo Finance 3 Intriguing Tech Stocks to Buy After Earnings
The broader technology sector continues to look attractive with the Nasdaq now up +21% this year to more than double the S&P 500’s +10%.
On that note, here are three top-rated Zacks Computer and Technology sector stocks that are standing out after their quarterly reports last week.
Viasat (VSAT)
Boasting a Zacks Rank #1 (Strong Buy) Viasat stock has continued to soar this year after beating its fiscal fourth-quarter earnings expectations last Wednesday.
Viasat designs, develops, and markets advanced digital satellite telecommunications and other wireless networking and signal processing equipment.
In a very impressive and profitable quarter, earnings of $15.56 per share came in 8% above EPS expectations of $14.41. This was despite a slight miss on the top line, with sales of $666.10 million coming up -2% short of estimates.
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Still, Viasat’s usage in the recent Kennedy Space Center launch on April 30th featuring SpaceX’s Falcon Heavy shuttle has many investors intrigued. This is expecially true with Tesla (TSLA) boss Elon Musk running the helm of SpaceX as well. Viasat stated the launch represented a new era as a global communication services company.
Viasat’s earnings estimate revisions have jumped much higher since the company’s Q4 report. Earnings are now forecasted to jump from -$2.87 per share in fiscal 2023 to -$1.41 a share in Viasat’s current FY24. Even better, FY25 earnings are expected to soar into the black at $0.87 per share. On the top line, sales are forecasted to rise 4% in FY24 and jump another 14% in FY25 to $3.16 billion.
Viasat’s earnings potential is starting to become attractive with the company's ViaSat-3 EMEA satellite on pace to launch again this year. It’s noteworthy to mention that Viasat stock is now up +41% year to date to easily top the broader indexes and blast the Wireless Equipment Markets' -4% performance.
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Wix.com (WIX)
Cloud-based developer Wix.com also looks attractive at the moment with a Zacks Rank #2 (Buy) following the company’s very impressive first-quarter results last Wednesday.
Wix is an Israeli-based company offering solutions that enable businesses, organizations, professionals, and individuals to develop customized websites and application platforms.
First-quarter EPS of $0.91 crushed expectations of $0.23 per share by 295%. Wix also beat top-line estimates by 1% with Q1 sales at $374.08 million. After a string of impressive earnings beats, Wix stock is starting to look worthy of investors consideration.
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Notably, Wix stock has an “A” Zacks Style Scores grade for Growth. Fiscal 2023 earnings are projected to soar to $1.64 per share compared to an adjusted loss of -$0.17 in 2022. More impressive, FY24 earnings are forecasted to climb another 49% at $2.45 per share. Sales are expected to rise 10% this year and jump another 11% in FY24 to $1.71 billion.
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Synopsys (SNPS)
Rounding out this tech list, Synopsys stock sports a Zacks Rank #2 ( Buy) and posted strong results for its fiscal second-quarter last Wednesday.
Synopsys is a vendor of electronic design automation (EDA) software for the semiconductor and electronics industries. Earnings of $2.54 per share topped Q2 EPS estimates by 3% with sales of $1.39 billion beating expectations by 1%.
Plus, Synopsys has now beaten earnings expectations for 18 consecutive quarters and topped sales estimates for 29 straight quarters.
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Synopsys’ consistency is very attractive to investors especially as the operating environment begins to stabilize for its semiconductor clients. Annual earnings are now anticipated to climb 19% this year and jump another 14% in FY24 at $12.12 per share.
Steady top-line growth is expected as well with sales projected to rise 14% in FY23 and pop another 11% in FY24 to $6.43 billion. More impressive, fiscal 2024 sales would represent 91% growth from pre-pandemic levels with 2019 sales at $3.36 billion.
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Takeaway
There could still be more upside for these tech stocks following their strong quarterly results and now appears to be a good time to buy. With the Nasdaq continuing to rise, Viasat, Wix, and Synopsys are three unique companies that stand out as sentiment toward the broader technology sector grows.
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