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5 Tech Stocks to Buy as Second Wave of Coronavirus Haunts

5 Tech Stocks to Buy as Second Wave of Coronavirus Haunts

Posted On June 22, 2020 2:31 pm
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The United States reported more than 30,000 new coronavirus cases on Jun 20 and Jun 21, the highest daily total since May 1, according to data compiled by John Hopkins University. Seven states hit record cases on Saturday, including Florida and South Carolina, which had their third consecutive day of breaking single-day records.

Fears of a second wave of coronavirus are looming already and it won’t come as a surprise if people once again start staying at home. Two months of at-home orders following the coronavirus outbreak have changed the way lives were led in the pre-COVID-19 era. With no signs of the virus receding, life has become a lot more technology dependent and in all likelihood will remain so.

COVID-19 Cases Surge

The United States has finally started reopening its economy but with that also comes the bad news of a surge in daily cases. Over the past two weeks, 23 states, Guam and Virgin Islands have seen a spike in coronavirus cases, according to NBC News. Officials are warning that some clusters of infections are apparent among younger people who are crowding bars and parties.

This has once again raised fears in the minds of people. The economy has already taken a hit and people may once again be confined to their homes. However, staying at home doesn’t look that difficult anymore with technology aiding survival amid lockdown. From ordering groceries online to working and learning remotely, to making contactless payment or getting entertained via streaming services, people have become a lot more dependent on technology over the past few months.

Tech Rally Continues

The coronavirus pandemic has been taking its toll on all sectors. Travel, aviation, automobiles and retail have been some of the major casualties. Tech has been one of the few sectors that seem to have been the least impacted by the pandemic. Wall Street hit a low in late March but since then has bounced back and tech has been one of the biggest reasons behind this rally.

Many at the beginning of the COVID-19 outbreak had predicted that the tech rally would come to a halt after more than two years of driving the markets. Clearly, they have been proven wrong. Increased dependence on technology has once again boosted the prospects of these stocks. The Technology Select Sector SPDR (XLK) has advanced 36.6% in the past 90 days compared with the S&P 500’s increase of 28.6%.

Our Choices

Increasing cloud-dependency to safely stay afloat makes this a suitable time to  invest in tech stocks. Each of the stocks handpicked by us has a Zacks Rank #1 (Strong Buy) or 2 (Buy) and a Growth Score of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.

PTC Inc. PTC provides software solutions and services globally, that aid manufacturing companies to design, operate and manage products. The company offers a comprehensive portfolio of software solutions comprising computer-aided design modeling, product lifecycle management, data orchestration, and experience creation products.

The company’s expected earnings growth rate for the current year is 39.6%. The Zacks Consensus Estimate for current-year earnings has improved 4.1% over the past 60 days.  PTC has a Growth Score of B. The company currently has a Zacks Rank #2.

Zoom Video Communications, Inc. ZM has been benefiting from work-from-home and online learning. Zoom uses AI to schedule video meetings and for a host of other things such as organizing attendee details and transcripting details.

The company’s expected earnings growth rate for the current year is more than 100%. The Zacks Consensus Estimate for current-year earnings has improved 174% over the past 60 days.  Zoom has a Growth Score of A and sports a Zacks Rank #1.

Mitek Systems, Inc. MITK is primarily engaged in the development and sale of software products with particular focus on intelligent character recognition and forms processing technology, products and services for the document imaging markets.

The company’s expected earnings growth rate for the current year is 19.1%. The Zacks Consensus Estimate for current-year earnings has improved 2% over the past 60 days.  The company has a Growth Score of A and carries a Zacks Rank #2.

Dynatrace Inc. DT is a software intelligence company. It is engaged in providing application performance management, artificial intelligence for operations, cloud infrastructure monitoring and digital experience management.

The company’s expected earnings growth rate for the current year is 29%. The Zacks Consensus Estimate for current-year earnings has improved 17.6% over the past 60 days.  The company has a Growth Score of A and Zacks Rank #2.

ServiceNow Inc. NOW provides cloud computing services that…

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