Last week, the S&P 500 climbed to its first record close since April as Wall Street turned more bullish on the likelihood that the Fed will cut interest rates this year. Meanwhile, investors once again seem somewhat hopeful that an end to the prolonged U.S.-China trade war might be near.
The S&P is up roughly 15% in 2019, with the likes of large-cap tech powers such as Netflix NFLX, Apple AAPL, and Amazon AMZN helping lift the index. Despite continued uncertainty between the world’s two largest economies and a downturn in chip markets, technology companies look set to be long-term winners.
With that said, let’s check out three blue-chip tech stocks to consider buying right now…
1. Intuit Inc. INTU
Intuit, which boasts a market cap of $67 billion, offers a variety of financial services geared toward taxes, small business money management, and personal finance. Intuit’s core software-as-a-service products include QuickBooks and TurboTax. The Mountain View, California-based company posted better-than-projected third quarter fiscal 2019 results in late May and raised its full-year guidance. Shares of Intuit have also jumped 31% in 2019 and 150% over the past three years, which blows away the S&P’s 46% climb.
Our current Zacks Consensus Estimates call for the company’s adjusted full-year earnings to climb 19.4% on the back of 13.2% revenue growth. Peeking ahead to next year, Intuit’s EPS figure is expected to climb roughly 13% higher than our current year estimate, with revenue projected to jump 9.5% above 2019 to reach $7.42 billion. INTU’s longer-term earnings estimate revision activity has turned far more positive recently to help it earn a Zacks Rank #2 (Buy) right now. And the tax-focused SaaS firm is a dividend payer that raised its payout by 21% this year.
2. Facebook FB
Facebook officially announced last week its hard asset-backed, blockchain-based cryptocurrency offering called Libra. Mark Zuckerberg’s firm, which partnered with Uber UBER, Spotify SPOT, Mastercard MA, and PayPal PYPL, seems set to make good on its promise to diversify amid continued backlash. Despite all of the negative headlines and increased government scrutiny, the social media giant’s core business model has remained strong, with both its daily and monthly active users up 8% last quarter. In fact, over 2.7 billion people use at least one of its “family” of services—which includes Facebook, Instagram, WhatsApp, and Messenger—every month on average. This number alone is one that should keep FB a money-making machine for years to come.
Going forward, FB hopes to expand its e-commerce reach and get back to its original goal to connect family and friends. Looking ahead, FB’s full-year 2019 revenue is expected to climb 24% to reach $69.22 billion, with 2020’s figure projected to pop 21% higher to $83.87 billion. Facebook’s adjusted full-year earnings are projected to slip 6.3% this year as it spends heavily on expansion and security. Despite the expected near-term downturn, Facebook’s 2020 EPS figure is projected to soar 31% above our 2019 estimate. Shares of FB have surged 44% in 2019, yet still rest 14% below their 52-week high of $218.62 per share. FB is a Zacks Rank #2 (Buy) at the moment and is trading at 21.9X forward 12-month Zacks Consensus EPS estimates. This marks a discount compared to its industry’s 26.9X average and its own three-year high of 37X and 27.1X median.
3. Cisco Systems, Inc. CSCO
Like its blue-chip tech peers, Cisco stock is up big in 2019, 32% to be exact. Shares of CSCO opened Wednesday at $56.54 per share, just off their 52-week week highs of $58.15. The historic networking power in recent years has expanded its IoT business. Cisco offers clients the ability to connect everything from transportation fleets to assembly lines in order to run their operations more efficiently. And the firm is coming off a better-than-projected Q3. Looking ahead, Cisco’s adjusted Q4 fiscal 2019 EPS figure is projected to jump 17% on 4.2% higher revenue. This growth is expected to help lift full-year earnings by 18.5% and revenue by 5.1%.
Plus, the company’s bottom line is expected to jump 11.3% above our current year estimate in fiscal 2020, with revenues projected to climb 3.7% higher to reach $53.79 billion. Along with this expected counited expansion, CSCO has seen its earnings estimate revision activity trend heavily in the right direction recently, especially for fiscal 2019 and 2020, to help Cisco land a Zacks Rank #2 (Buy). Cisco is also a dividend payer that sports a 2.5% yield at the moment.
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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report
Netflix, Inc. (NFLX) : Free Stock Analysis Report
Amazon.com, Inc. (AMZN) : Free Stock Analysis Report
Facebook, Inc. (FB) : Free Stock Analysis Report
PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report
Apple Inc. (AAPL) : Free Stock Analysis Report
Intuit Inc. (INTU) : Free Stock Analysis Report
Mastercard Incorporated (MA) : Free Stock Analysis Report
Spotify Technology SA (SPOT) : Free Stock Analysis Report
Uber Technologies, Inc. (UBER) : Free Stock Analysis Report
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