Investing
3 Top Ranked Technology Stocks Charging Higher Into Year End
Published:
Last Updated:
As we venture into the final stretch of the year, investors are actively seeking avenues to position their portfolios in anticipation of a potential year-end rally. Against the backdrop of an already impressive year for the stock market, the ongoing upward momentum leaves me decidedly bullish into the end of the year.
Technology stocks have been the unequivocal front-runners of this rally and are likely to remain the leaders. These are three less well-known technology stocks that have been on a tear all year. AppLovin APP, Vertiv VRT and Splunk SPLK in addition to strong momentum also boast top Zacks Ranks.
AppLovin
AppLovin is a dynamic technology company that operates in the mobile app ecosystem. Founded in 2012, the company offers a comprehensive suite of solutions designed to empower app developers and businesses to reach their target audiences effectively. AppLovin’s platform encompasses mobile advertising, app publishing, and analytics tools, enabling developers to maximize user engagement and revenue generation.
With some incredible earnings estimate revisions, it is no surprise APP enjoys a Zacks Rank #1 (Strong Buy) rating. Current quarter earnings estimates have been upgraded by 170% over the last month and are expected to climb 350% YoY to $0.27 per share. FY23 earnings estimates have been boosted by 120% and are projected to grow 328% YoY to $0.77 per share. Additionally, EPS are forecast to grow 20% annually over the next 3-5 years.
Having rallied an epic 300% YTD, AppLovin is clearly benefiting from the strong demand for technology stocks this year. It is worth noting that its stock is still more than -60% off its all-time high.
APP stock price action is quite encouraging and appears to have found a clear bottom. The stock continues to consolidate and break out from bull flags. Although it looks a bit extended here, investors can consider buying pull backs.
Splunk
Splunk is a prominent data analytics and technology company founded in 2003. Renowned for its powerful software platform, Splunk specializes in processing and analyzing vast amounts of machine-generated data.
The platform enables organizations to gain valuable insights from their data, helping them make informed decisions, enhance security, and optimize performance. With applications spanning cybersecurity, IT operations, business analytics, and more, Splunk has established itself as a pivotal player in the data-driven transformation of various industries.
Splunk too has experienced some considerable revisions higher to its earnings estimates, giving it a Zacks Rank #1 (Strong Buy) rating. Current quarter estimates have increased by 44% over the last month and are expected to grow 34% YoY to $1.11 per share.
From a technical perspective, SPLK stock cleared a two-year downtrend in May, and broke above a major level of resistance just last week. Last year and the year before that were not kind to SPLK stock as it experienced a -70% drawdown. However it seems that sell off went too far, and like a rubber band being stretched to its maximum, Splunk looks ready to snap back.
Vertiv
Vertiv is a leading provider of critical digital infrastructure and solutions. Established to address the evolving needs of data centers, communication networks, and industrial facilities, Vertiv specializes in ensuring the reliability, efficiency, and sustainability of these vital systems. With a focus on power management, thermal management, and IT management solutions, Vertiv enables organizations to operate seamlessly in a rapidly changing digital landscape.
Analysts have agreed unanimously to upgrade Vertiv’s earnings estimates, giving it a Zacks Rank #1 (Strong Buy). Current quarter estimates have been increased by 26% and FY23 have been revised higher by 27%.
Vertiv might be the strongest stock of the three. While the other two are building momentum below their prior all-time highs, Vertiv is blasting to new highs daily. After breaking above a major level of support in May the stock rallied rigorously.
VRT continues to form consolidations and break higher. Although at this point it is a bit stretched investors should consider buy shares on pull backs.
Bottom Line
Although many investors have already performed very well, I don’t think now is the time to step back. While we should certainly make sure not to give back our hard earned gains from this year, it looks like there are still opportunities abound in this market environment.
Splunk Inc. (SPLK): Free Stock Analysis Report
AppLovin Corporation (APP): Free Stock Analysis Report
Vertiv Holdings Co. (VRT): Free Stock Analysis Report
To read this article on Zacks.com click here.
This article originally appeared on Zacks
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.