3 Soaring Tech Stocks That Could Go Even Higher

3 Soaring Tech Stocks That Could Go Even Higher

Posted On September 14, 2021 1:33 pm

The tech industry has been the biggest beneficiary of the COVID-19 pandemic because the public health crisis has heightened demand for technology at an accelerated pace with the adoption of remote work structures and digital ways of operating businesses. In addition, rapid tech integration in most sectors around the globe has allowed tech stocks to enjoy greater investor interest. And in the U.S., tech budgets are expected to expand 7.4% in 2021 and 6.7% in 2022. Furthermore, substantial federal investments to boost domestic semiconductor chip production should boost the tech industry’s growth over an extended period.

The tech heavy Nasdaq Composite has gained 7.4% over the past three months to hit its all-time high on September 7. The broader S&P 500 index gained 5.3% over this period. Moreover, the Technology Select Sector SPDR Fund (XLK) gained 38.7% over the past year compared to the broader SPDR S&P 500 ETF Trust’s (SPY) 33.3% gain.

Given this backdrop, fundamentally sound tech stocks Canon Inc. (CAJ – Get Rating), Amkor Technology, Inc. (AMKR – Get Rating), and ScanSource, Inc. (SCSC – Get Rating) have been gaining momentum over the past few months. Currently trading above their 50-day and 200-day moving averages, these stocks appear to have plenty of upside remaining.

Canon Inc. (CAJ – Get Rating)

CAJ is a multinational corporation headquartered in Tokyo, Japan, that produces and sells cameras, lenses, semiconductor equipment, printers, and other products.

In August, the CAJ’s U.S. branch  launched its new inkjet printer bearing  enhanced features, such as a large capacity paper tray that reduces paper refilling, and easier insertion and displacement of ink cartridges and paper. In addition, the model was designed considering customer feedback to improve user experience. Thus, this product is likely to be in demand and should help the company to gain significantly.

Also last month, CAJ launched a new portable zoom lens for 8K broadcast cameras with a fast constant aperture and greater zoom magnification capacity. The new lens should gain popularity in no time, given the increasing demand for high-resolution broadcasting solutions.

In the second fiscal quarter, ended June 30, the company’s net sales increased 31% year-over-year to $7.95 billion. Its operating profit improved 535.2% from the prior-year quarter to $696.12 million. In addition, CAJ’s net income and EPS improved significantly from their negative year-ago values to $550.89 million and $0.53, respectively.

A $0.36 consensus EPS estimate for the current quarter (ending September 2021) indicates a 157.1% year-over-year increase. Likewise, the $8.08 billion consensus revenue estimate for the current quarter reflects an 18.3% increase from the prior-year quarter. Furthermore,  CAJ has an impressive surprise earnings history; it has topped consensus EPS estimates in all four trailing quarters.

The stock has gained 26.6% in price year-to-date to close Friday’s trading session at $24.57. It is currently trading above its 50-day and 200-day moving averages of $23.84 and $23.30, respectively, indicating an uptrend.

CAJ’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which equates to Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

CAJ has a Sentiment and Quality grade of A, and a Growth, Value, and Stability grade of B. It is ranked #1 of 46 stocks in the B-rated Technology – Hardware industry.

To see additional POWR Ratings for Momentum for CAJ, click here.

Amkor Technology, Inc. (AMKR – Get Rating)          

AMKR provides semiconductor chip testing and packaging solutions for customers globally. The company’s operations span over production facilities, product development centers, and support offices. AMKR is headquartered in Tempe, Ariz.

On August 10, AMKR announced that it is advancing its 5G RF module design, addressing the need for advanced RF front-end module packaging for 5G devices. Concerning this development, Giel Rutten, AMKR President and CEO, said, “With our DSMBGA platform, we’ve established a preferred advanced packaging solution for this domain.”

In its second fiscal quarter…

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