Zacks

2 Tech Stocks to Buy in Q3 and Hold for Years

Benjamin Rains
9 min read

In This Article:

The S&P 500 hit new records on the final day of the second quarter. The benchmark index has climbed over 14% in the first half of 2021 and is up roughly 27% from its pre-pandemic levels in February 2020. This helps provide more context for where Wall Street is at the moment and might help ease some worries that the market is super overheated.

The Nasdaq has also soared back to new highs to end Q2, with the technology-heavy index up roughly 12% since May 12. Wall Street has used every pullback and healthy recalibration in big tech as a chance to buy their favorite stocks, from titans such as Microsoft MSFT and Adobe ADBE to countless growth names, at discounts.

Wall Street has driven stocks to highs amid the low volume summer in the face of inflation fears. The market has seemingly shrugged off the possibility of higher interest rates and the yield on the 10-year U.S. Treasury note has actually slipped back to 1.47% from 1.75% in late March.

The ability to look beyond rising prices amid the booming U.S. economy could mean Wall Street understands that there is no alternative investing won’t end anytime soon, with interest rates set to remain historically low even when the Fed begins to lift them. This means investors will likely be left chasing returns in equities for the foreseeable future.

Zacks Investment Research
Zacks Investment Research

Image Source: Zacks Investment Research

The growth is, of course, supported by the resurgent U.S. economy and the impressive S&P 500 earnings picture that is expected to keep getting better (also read: Q2 Earnings Growth Reflects More Than Easy Comps).

All that said, some investors might be hesitant to buy stocks with the market at new highs, and there are clearly valid reasons to avoid doing so. But timing the market is extremely difficult and trying to do so can lead to buying high and selling low and missing out on comebacks.

Instead, long-term investors, with horizons of a year or longer are often better suited buying strong stocks and staying constantly exposed to the market even during dips and corrections, which are healthy and common. Today we dive into two stocks poised to grow in a world dominated by technology that might be worth buying in Q3 and beyond…

Roku ROKU

The pandemic cemented streaming TV as the future of entertainment in the U.S. and beyond, after its ascendance helped Netflix NFLX become one of the star stocks of the last decade. In the last several years, Apple AAPL and Disney DIS have stormed into the streaming market to take on NFLX, Amazon AMZN, and others. Disney already crushed its own subscriber goals and laid out a lofty new path and Netflix has amassed over 200 million subscribers worldwide.

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