Why Brokers are Betting Large on These 5 Tech Stocks

It’s no secret that this has been a HUGE tech-driven rally.

The Q2 earnings season basically confirmed what we suspected all along: that the pandemic has given an unprecedented push to the sector as companies of every shape and size are racing to increase their digital capabilities.

By some estimates, five years of tech spending have been pulled into the present, putting the tech sector on steroids. This is no mean feat when you consider the fact that they were already in various stages of preparedness for the eventuality of a tech-driven future.

With every wave of growth there have been an increasing number of naysayers, people who would rather play safe. But they’ve been accompanied by an equally big number of people unable to bet against it.

So there’s no time like now to go big on tech because the momentum is simply out of this world.

But of course, not all trades are about momentum. Sometimes, you come across attractive growth stocks too. And sometimes, they aren’t the big names everyone is hollering about. So you can quietly wait for the opportune time to jump.

[Breakthrough: The World’s Most Successful Tech Giants are Buying into this Emerging Field]

And guess what? Brokers are betting on these names too. Let’s take a look…

Etsy, Inc. (ETSY)

Etsy offers online and offline marketplaces for ecommerce in the art, home and living, mobile accessories, jewelry, wedding and other categories. It operates primarily in Hudson (New York), San Francisco (California), Berlin (Germany), Dublin (Ireland), London (UK), Paris (France), Toronto (Canada) and Melbourne (Australia).

  • Zacks Rank #1 (Strong Buy) (average broker rating 1.49, equivalent to Buy)
  • Industry: Internet – Services (top 47%)
  • Growth Score A
  • Revenue and earnings are expected to grow both this year and the next.
  • The current year EPS is expected to grow 169.7% from $0.76 to $2.05.
  • 2021 EPS is expected to grow 1.8% from $3.32 to $3.43.
  • The Zacks Consensus Estimate for current year earnings is up 42.6% in the last 60 days.

Calix, Inc (CALX)

Calix offers cloud and software platforms and systems including related services for unified access to communications service providers (CSPs) primarily in the U.S., the Middle East, Canada, Europe and the Caribbean. Its products facilitate the provision of a range of services, including basic voice, data and advanced broadband services.

  • Zacks Rank #2 (Buy) (average broker rating 1.00, equivalent to Strong Buy)
  • Industry: Communication – Infrastructure (top 20%)
  • Growth Score A
  • Revenue and earnings are expected to grow both this year and the next.
  • The current year EPS is expected to grow 766.7% from 6 cents to 52 cents.
  • 2021 EPS is expected to grow 23.7% from 52 cents to 64 cents.
  • The Zacks Consensus Estimate for current year earnings is up 116.7% in the last 60 days.

[Big Money: Google and Microsoft Just Put Over $4 Billion into this New Technology]

BWX Technologies, Inc. (BWXT)

BWX Technologies supplies precision manufactured nuclear components and services to the nuclear power industry. Its technical, management and site services enable government departments like the United States Department of Energy and National Nuclear Security Administration's Naval Nuclear Propulsion Program in complex operations and environmental remediation activities. It operates primarily in the U.S and Canada.

  • Zacks Rank #2 (average broker rating 1.40, equivalent to Strong Buy)
  • Industry: Electronics – Miscellaneous Components (top 27%)
  • Growth Score A
  • Revenue and earnings are expected to grow both this year and the next.
  • The current year EPS is expected to grow 9.5% from $2.62 to $2.87.
  • 2021 EPS is expected to grow 10.1% from $2.87 to $3.16.
  • The Zacks Consensus Estimate for current year earnings is up 2.5% in the last 60 days.

ManTech International Corporation (MANT)

ManTech International Corporation provides innovative technologies and solutions (including systems engineering and integration, software development, security architecture, intelligence operations support, network and critical infrastructure protection, IT communications integration and engineering support) for mission-critical national security programs for the Intelligence Community; the Departments of Defense, State, Homeland Security, and Justice; the Space Community; and other U.S. federal government customers. It also provides physical and cyber security to U.S. embassies all over the world.

  • Zacks Rank #2 (average broker rating 1.89, equivalent to Buy)
  • Industry: Computer – Services (top 12%)
  • Growth Score A
  • Revenue and earnings are expected to grow both this year and the next.
  • The current year EPS is expected to grow 9.3% from $2.91 to $3.18.
  • 2021 EPS is expected to grow 7.8% from $3.18 to $3.43.
  • The Zacks Consensus Estimate for current year earnings is up 4.6% in the last 60 days.

[Breakthrough: The World’s Most Successful Tech Giants are Buying into this Emerging Field]

Perficient, Inc. (PRFT)

Perficient provides consultation services for digital transformation spanning information technology, management consulting and creative capabilities with the goal of improving productivity and competitiveness; strengthening relationships with customers, suppliers and partners; and cost reduction.

  • Zacks Rank #2 (average broker rating 1.50, equivalent to Buy)
  • Industry: Computer – Services (top 12%)
  • Growth Score A
  • Revenue and earnings are expected to grow both this year and the next.
  • The current year EPS is expected to grow 10.1% from $2.07 to $2.28.
  • 2021 EPS is expected to grow 7.8% from $2.28 to $2.55.
  • The Zacks Consensus Estimate for current year earnings is up 13.4% in the last 60 days.

[Read On: Discover What Bill Gates is Calling the “Holy Grail” of Modern Tech]

Read more from Sejuti Banerjea at Zacks.com

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