The sudden return of volatility to global stock markets has created buying opportunities in large-cap tech stocks as the sector’s investors look to rebound from recent selloffs. The world’s tech leaders have dominated Wall Street over the past two years, and now, investors might have a fresh chance to buy a few previously red-hot stocks at a discount.
Of course, this recent volatility has made some investors hesitant, with bearish traders quick to draw similarities between this latest tech rally and the infamous dot-com bubble of the late 90s and early 2000s.
However, unlike the dot-com bubble, there is real earnings and revenue growth fueling this tech rally. In fact, the average P/E ratio of our “Computer and Technology” sector currently sits at 20.8, which compares favorably to the dot-com era’s average that routinely soared into the 200s.
Another interesting trend in today’s tech rally is that, rather than obsessing over the next big thing, investors seem to rewarding tried-and-true brands for their respectable growth. This means that some of the strongest tech stocks are the household names that consumers already know and love.With that said, check out these three blue chip tech stocks to buy now:
Hot Penny Stocks For 2019: J.C. Penney Company, Inc. Holding Company(JCP)
J C Penney Company (NYSE:JCP) got hammered on Wednesday for a near-8% loss. That decline dropped JCP stock well below the $3 threshold and put it squarely back in the potential bargain bin category.
JCP stock has been back in the news recently due to a management change. As InvestorPlace’sWilliam White wrote, JCP’s CEO, Marvin Ellison, quit the company to take the reins at Lowe’s Companies, Inc. (NYSE:LOW). While Ellison is clearly stepping into a nice position at Lowe’s, he also may have wanted to get away from JC Penney given recent results. JCP disappointed with its past holiday season, and this most recent quarter was a mixed bag, as revenues beat but earnings missed and the company offered soft guidance.
Despite the issues, J C Penney could still turn the corner. Analysts see the company finally returning to profitability over the next year. Forward earnings estimates put the stock around 18x earnings. If those earnings in fact occur, expect JCP stock to fly. Short sellers are betting against an astounding 41% of JCP stock’s float. That sort of massive short position is just asking for an explosion when the company delivers good news.
With Sears Holding Corp (NASDAQ:SHLD) closing dozens more stores and looking increasingly shaky, JCP stock can fly once it takes sales away from its rival.
Hot Penny Stocks For 2019: Glu Mobile Inc.(GLUU)
Glu Mobile is a leading global publisher of mobile games, including top-rated original titles and titles based on major brands from partners like Activision and Hasbro. Glu is bouncing into a profitable year, with earnings expected to improve by 150% to touch $0.22 per share in 2018. Meanwhile, revenue is projected to grow by 18%. The stock now has a Zacks Rank #2 (Buy). This is also a popular momentum option right now after shares skyrocketed about 43% in the past month. Investors looking to follow this trend should appreciate that analyst sentiment has improved strongly as well.
Hot Penny Stocks For 2019: IPG Photonics Corporation(IPGP)
IPG Photonics (NASDAQ:IPGP) is the world’s leading provider of high-power fiber lasers. These lasers are used in a variety of different devices and applications, ranging from materials processing to broadband internet to medical pumps.
The bottom line is, the demand for fiber optic laser technology is a growth industry for a very long time, and IPGP is one of the major players.
Fiber lasers are the next generation of laser technology and offer many advantages over traditional lasers. They’re more energy efficient, they’re easier to maintain and they last longer.
As companies upgrade their current technologies with fiber-laser applications, IPG Photonics’ sales and earnings continue to soar.
In March IPGP entered the S&P 500, which is a big deal because every index fund linked to S&P 500 performance now needs to own the stock.
But IPGP stock has been up and down on tariff talk, so it’s a great time to get in.
Hot Penny Stocks For 2019: Seagate Technology PLC(STX)
Seagate Technology plc (NASDAQ:STX) is a provider of data storage technology and solutions to clients across the globe.
The company is based out of Dublin, Ireland and sports a Zacks Rank #1. The expected earnings growth rate for the current year is 28.49%. The Zacks Consensus Estimate for the current year has improved 18.2% over the past 60 days. Seagate has gained 51% in the past six months.