U.S. stocks were down through early afternoon trading Friday, with the tech-heavy Nasdaq index suffering the day’s sharpest losses on the back of a few disappointing earnings reports and continued weakness from Facebook FB.
The late-week selloff threatens to put a damper on what has otherwise been a solid month for tech stocks. What’s worse, a handful of sluggish quarterly reports might also threaten to cloud what has been an otherwise great start to earnings season for the sector.
Indeed, many names in the technology space had flexed their muscles and attempted to remind investors of the sector’s dominance in recent weeks.
Considering the current state of the world, tech’s leadership makes sense. Cloud computing and the Internet of Things have already revolutionized our everyday life, and now we are on the cusp of artificial intelligence and autonomous vehicle revolutions that could redefine what it means to be human.
In response to these changing times, investors have poured money into the tech sector in search of the next explosive stock. Even with this week’s volatility, we witnessed plenty of noteworthy tech companies start to pick up momentum, including several that are sporting strong Zacks Ranks and other key metrics.
Check out three tech stocks that soared this month to buy now:
1. Grubhub Inc. (GRUB)
Earlier this week, food delivery giant Grubhub reported strong sales and earnings figures for its most recent quarter. Grubhub surpassed earnings and revenue expectations for the fourth consecutive quarter and saw $1 billion in quarterly gross food sales, which was a 39% increase year over year.
Grubhub also unveiled its acquisition of LevelUp, a mobile payments and customer loyalty company, which analysts quickly hailed as the real reason for its post-earnings rally. Shares of this Zacks Rank #2 (Buy) jumped more than 25% in the wake of the announcement.
2. Audiocodes Ltd. (AUDC)
AudioCodes designs, develops and markets enabling technologies and communication components for the transmission of voice, fax and modem over packet networks. The firm came out with earnings earlier this week, posting adjusted profits of $0.14 per share, beating the Zacks Consensus Estimate of $0.10 per share.
AudioCodes also posted revenues of $43.5 million for the quarter ended June 2018, surpassing the Zacks Consensus Estimate by 2.4%. This helped the stock tick about 16% higher, and resulting analyst bullishness has lifted the stock to a Zacks Rank #2 (Buy).
3. GoDaddy Inc. (GDDY)
A leader in domain name licensing, GoDaddy skyrocketed to fame thanks to a series of raunchy TV commercials that had very little to do with its business. Regardless, the company is good at what it does. GoDaddy has recently cemented profitability, and shares have benefitted from a fresh interest in small-to-mid cap stocks.
GDDY has steadily added about 15% over the past month, lifting the stock’s trailing one-year gains to nearly 82%. Plus, GoDaddy stands to move higher as it currently sports a Zacks Rank #2 (Buy).
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Facebook, Inc. (FB) : Free Stock Analysis Report
GrubHub Inc. (GRUB) : Free Stock Analysis Report
GoDaddy Inc. (GDDY) : Free Stock Analysis Report
AudioCodes Ltd. (AUDC) : Free Stock Analysis Report
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