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The 3 Best Buy-the-Dip Tech Stocks in 2022

The 3 Best Buy-the-Dip Tech Stocks in 2022

Posted On July 12, 2022 1:22 pm
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Tech stocks have witnessed a massive sell-off this year, with the tech-heavy Nasdaq Composite index slumping 30.7% year-to-date. The Fed’s aggressive policy tightening to bring prices down, supply chain logjams, a tight labor market, and geopolitical unrest have all contributed to the correction.

However, with the rapid evolution of technology, organizations are investing in keeping up with the trends in this fast-changing environment. Given the surging demand for tech products and solutions and consistent breakthroughs, the industry is expected to generate substantial revenues in the long run.

The global information technology market is expected to hit $13.81 trillion by 2026, growing at a CAGR of 10.3%. Emerging technologies such as the internet of things (IoT), artificial intelligence, cloud computing, AR & VR are expected to be the key drivers of the industry’s growth.

Thus, we think investors should buy the dip in quality tech stocks Apple Inc. (AAPL), Salesforce, Inc. (CRM), and Palo Alto Networks, Inc. (PANW).

Apple Inc. (AAPL)

AAPL designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories and sells various related services. Its product offerings include iPhone, Mac, AirPods Max, iPad, Wearables, home, and accessories.

On July 6, 2022, APPL detailed its initiatives to expand its industry-leading commitment to protect users from highly targeted mercenary spyware. The company ‘Lockdown Mode’ is a ground-breaking security capability that offers protection to small users who face targeted threats to their digital security. It also shared the details of its $10 million grant to bolster research exposing such threats.

AAPL’s net sales increased 9% year-over-year to $97.28 billion for the second quarter ended March 26, 2022. Its operating income grew 9% from its year-ago value to $29.98 billion. The company’s net income increased 5.8% year-over-year to $25.01 billion, while its EPS came in at $1.52, up 8.6% from its year-ago value.

3 STOCKS TO DOUBLE THIS YEAR

The consensus revenue estimate of $90.40 billion for the fiscal fourth quarter (ending September 2022) represents an 8.4% increase from the same period last year. The consensus EPS estimate of $1.32 for the ongoing quarter represents a 6.3% increase from the same period last year. 

The company has an excellent earnings surprise history; it surpassed the consensus EPS estimates in each of the trailing four quarters.

The stock has declined 17.2% year-to-date to close the last trading session at $147.04. It is currently trading 19.6% below its 52-week high of $182.94, which it hit on January 4, 2022.

AAPL’s strong fundamentals are reflected in its POWR Ratings. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

It has a B grade for Sentiment and Quality. Within the Technology – Hardware industry, it is ranked #16 out of 45 stocks. Click here to see the other ratings of AAPL for Growth, Value, Momentum, and Stability.

Salesforce, Inc. (CRM)

CRM offers a customer relationship management platform that binds companies and customers globally. Its Customer 360 platform delivers a source, which connects customer data across systems, applications, and devices to help companies sell, service, market, and conduct commerce from anywhere.

On June 29, 2022, CRM introduced MuleSoft, a unified solution for every team with easy automation and integration across any system or workflow. This solution is expected to be demanded by…

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