Amid tightening monetary policies of the Fed, tech stocks have witnessed significant downtrends. The tech-heavy and interest rate-sensitive NASDAQ Composite has lost 24.1% year-to-date. Moreover, St. Louis Fed President Jim Bullard is leaning toward another 75 bps hike in September, which might lead to further turmoil in the tech industry.
However, demand for tech goods and services is overwhelming amid rapid digitalization. Also, lucrative federal investments in the tech sector are expected to boost productivity. Recently, President Joe Biden signed the CHIPS and Science Act, worth $280 billion, to bolster American competitiveness in science and technology.
Tech inclination is growing rapidly. According to Statista, the number of smartphone subscriptions worldwide is projected to reach 7.69 billion by 2027, while in the U.S., the number of smartphone users is estimated to surpass 300 million by 2025.
Given the backdrop, investors might consider buying fundamentally sound tech stocks Jabil Inc. (JBL), Extreme Networks, Inc. (EXTR), and AudioCodes Ltd. (AUDC) now. These stocks are rated Strong Buy in our proprietary POWR Ratings system.
Jabil Inc. (JBL)
JBL offers products and services for manufacturing all over the world. The company operates in two segments, Electronics Manufacturing Services, and Diversified Manufacturing Services.
On July 12, 2022, JBL and IdentifySensors Biologics, a pathogen-detection platform technology company, agreed to co-develop processes for advanced manufacturing of portable devices for rapidly detecting a wide range of infections at the molecular level. This provides more accuracy than PCR testing and is a game changer in diagnostics.
JBL’s net revenues came in at $8.33 billion for the third quarter ended May 31, 2022, up 15.4% year-over-year. Its net profit increased 28.2% year-over-year to $218 million. Also, its EPS increased 35.7% year-over-year to $1.52.
Analysts expect JBL’s revenue to increase 12.1% year-over-year to $32.84 billion in 2022. Its EPS is estimated to increase 32.9% year-over-year to $7.45 in 2022. It surpassed EPS estimates in all four trailing quarters. Over the past six months, the stock has gained…
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