In This Article:
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(0:30) - Using The Zacks Stock Screener To Find Technology Investments For Your Portfolio Right Now
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(5:10) - Tracey's Top Stock Picks
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(34:35) - Episode Roundup: AVGO, COMM, DBX, IDCC, STNE, XYZ
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Podcast@Zacks.com
Welcome to Episode #442 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds, and ETFs and how it impacts your life.
This week, Tracey is going solo to screen for technology stocks. In these volatile times, with the stock market pulling back off its highs, why not find cheap technology stocks that also have the top Zacks Rank of Strong Buy?
Screening for Top Technology Stocks
Tracey screened for Zacks Rank #1 (Strong Buys). At the time of the podcast, there were only 214 Strong Buy stocks. The top Zacks Rank usually indicates that analysts are revising earnings estimates higher. Investors should look for rising earnings estimates.
To find cheap stocks, she used the PEG ratio. The PEG ratio is determined by taking the price-to-earnings ratio divided over growth. Don’t worry, you don’t have to figure it out yourself. The screening tool is set up to do that. You just plug it into the screen.
If it’s under 1.0, that means the company has both value and growth. That’s a rare combination. Tracey decided to use a PEG ratio under 1.50, however, in order to make sure she captured more stocks in the screen.
It found 58 companies.
And then she screened for the Computer and Technology sector on Zacks in order to get only technology stocks.
This screen, with just 3 components, returned just 5 stocks.
5 Strong Buy Technology Stocks for Your Short List
1. Broadcom Inc. (AVGO)
Broadcom is a large cap semiconductor and infrastructure software solutions company. Over the last month, shares of Broadcom have fallen 10.7%.
It has an attractive PEG ratio of 1.4. Broadcom is also shareholder friendly. On Apr 7, 2025, the company announced a new $10 billion share buyback program.
Should Broadcom be on your short list even with all the uncertainty in the semiconductors?
2. CommScope Holding Company, Inc. (COMM)
CommScope is a global provider of infrastructure solutions for wireless business enterprise and residential broadband networks. It’s a small cap company with a market cap of $788 million.
Over the last month CommScope shares have fallen 32.2%. CommScope has a PEG ratio of just 0.2. A PEG ratio under 1.0 usually indicates value and growth.
CommScope is a Strong Buy stock under $5. Should it be on your short list?