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2 Tech Stocks That Could Pop

2 Tech Stocks That Could Pop

Posted On August 4, 2022 1:27 pm
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U.S. technology stocks reached their highest level in three months, boosted by solid corporate earnings and positive economic data. The S&P 500 index rose 1.6% on Wednesday, led by technology and consumer stocks. This assisted in recouping losses from the first two days of the week. The Nasdaq Composite increased 2.6% to its highest level since early May.

Regardless of market downturns or unprecedented global events, organizations are investing in strengthening their digital capabilities as technology advances. Investments in digitization from various sectors to keep up with the fast-changing business environment are expected to generate significant revenues for tech companies in the long run.

The global information technology market is expected to be worth $13.81 trillion by 2026, with a 10.3% CAGR. The growing reliance on technology, technological advancements, and emerging technologies such as cloud computing, artificial intelligence, extended reality, data analytics, and blockchain are expected to propel the industry forward.

Given this backdrop, we think it could be wise to invest in quality tech stocks CTS Corporation (CTS) and Avnet Inc. (AVT) to capitalize on the solid industry growth attributes.

CTS Corporation (CTS)

CTS is a leading product designer and manufacturer of products that Sense, Connect, and Move. The company makes sensors, actuators, and electronic parts in North America, Europe, and Asia. It also sells engineered products to clients in the aerospace/defense, industrial, medical, and transportation sectors.

In June, CTS completed the previously announced cash acquisition of Ferroperm Piezoceramics from Meggitt PLC (MGGT) for 525 million Danish Krone, subject to customary net debt and working capital adjustments and other terms and conditions of the Definitive Share Purchase Agreement.

CTS’ revenues increased 11.9% from the year-ago value to $144.98 million for the second quarter ended June 30, 2022. Its operating income grew 10.2% year-over-year to $22.69 million. The company’s net income surged 1339.8% from the prior-year quarter to $12.59 million, while its EPS amounted to $0.39.

TOP 10 STOCKS FOR THE YEAR AHEAD

Analysts expect the EPS to increase 30.6% year-over-year to $2.52 in fiscal 2022. The consensus revenue estimate of $593.18 million in fiscal 2022 represents a 15.6% increase from the same period last year. The stock has gained 16.8% over the past year and 19.6% over the past month.

CTS’ POWR Ratings reflect this promising outlook. The company has an overall rating of…

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