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Want To Invest In Tech? These 2 Stocks Are Great Buys

Want To Invest In Tech? These 2 Stocks Are Great Buys

Posted On July 22, 2022 1:18 pm
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The tech industry thrived over the past two years, thanks to the pandemic-driven acceleration in digital transformation, the shift to remote working, and the rapid adoption of advanced technologies such as the cloud, everything-as-a-service (XaaS), and edge intelligence to ramp up capabilities.

According to Gartner, worldwide IT spending is projected to reach $4.40 trillion in 2022, indicating an increase of 4% from 2021.

Although tech stocks have had a rough ride this year, the tech sector has been making occasional rebounds. Tech stocks rallied Wednesday, helping the Nasdaq Composite notch the highest closing level since early June. Moreover, companies that are well positioned in the technology space might weather an economic storm.

Therefore, we think tech stocks Dropbox, Inc. (DBX) and Celestica Inc. (CLS), which possess solid fundamentals, could be great additions to one’s portfolio.

Dropbox, Inc. (DBX)

DBX provides a content collaboration platform that allows individuals, teams, and organizations to sign up and collaborate through its website or app. The company serves customers in the professional, technology, media, education, industrial, retail, and financial services industries, with approximately 700 million registered users as of December 2021.

DBX’s revenue increased 9.9% year-over-year to $562.40 million in the fiscal first quarter ended March 31, 2022. Gross profit totaled $449.50 million compared to $402.30 million for the same period last year, while the income from operations was $89.50 million, compared to the prior-year quarter value of $42.50 million. Its net income per share improved 75% year-over-year to $0.21.

The consensus EPS estimate of $0.39 for the fiscal quarter ending September 2022 represents a 5.34% improvement year-over-year. The consensus revenue estimate of $589.55 million for the same quarter represents a 7.2% increase from the same period last year. In addition, the company topped Street’s EPS estimates in each of the trailing four quarters.

3 STOCKS TO DOUBLE THIS YEAR

DBX’s stock has gained 9.9% over the past month to close the last trading session at $22.69.

DBX’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, translating to Buy in our POWR Ratings system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.

DBX has an A grade in Quality and a B in Value. It is ranked #13 of 80 stocks in the Technology – Services industry.

Beyond what is stated above, we’ve also rated DBX for Momentum, Sentiment, Growth, and Stability. Get all the DBX ratings here.

Celestica Inc. (CLS)

CLS is a provider of a hardware platform and supply chain solutions in North America, Europe, and Asia. It operates through two segments Advanced Technology Solutions; and Connectivity & Cloud Solutions.

CLS’ revenue increased 27% year-over-year to $1.57 billion in the fiscal first quarter ended March 31, 2022. Its earnings from operations grew 71.3% from the year-ago value to $40.60 million, while its net earnings for the…

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