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3 Highly-Ranked Tech Stocks to Buy Now and Hold for Years

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·3 min read
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Today’s episode of Full Court Finance at Zacks breaks down the market at the halfway point of August. We then explore three Zacks Rank #1 (Strong Buy) tech stocks that provide exposure to different growth aspects of the market and might be worth buying for investors with longer-term horizons.

The S&P 500 and the Dow notched records to end last week. Both indexes then fought their way back to end Monday in the green, setting new highs in the process. Meanwhile, the tech-heavy Nasdaq hovers within roughly 1% of its records as Wall Street awaits earnings reports from the likes of Target TGT, Nvidia NVDA, and others during the week of August 16.

The broader S&P 500 earnings season has been notably impressive, with profits at all-time highs. More importantly, strong guidance from companies spanning many areas of the economy have continued to lift estimates (also read: 3 Things to Know About the Q2 Earnings Season).

Along with earnings positivity, July’s jobs topped expectations and represented the biggest gain since August 2020, while unemployment hit its lowest levels since the early days of the pandemic in March 2020. Behind all of these bullish signals sits an interest rate environment that will continue to favor stocks for the foreseeable future. Goldman Sachs turned more bullish on the back of all of these factors.

There could be more near-term selling. Still, the longer-term bullish case remains despite Delta coronavirus variant worries, economic slowdown concerns, and rising prices—barring any major restriction or new lockdowns.

Taking everything into account, investors with long-term horizons should consider buying strong stocks they plan to hold for years because timing the market is extremely difficult.

The first stock we dive into is Sonos SONO. The high-end home audio and speaker company topped our Q3 estimates on August 11 and it soared after hours Friday, following positive news regarding a patent dispute with Google. Sonos thrives in a market that features some of the biggest tech companies in the world and its outlook is strong. 

Apple AAPL stock has underperformed the tech sector over the last year and in 2021. But the iPhone giant could be due to breakout after its strong Q3 FY21 showing highlighted why it is the most valuable company in the world.

Last up is Shopify SHOP, which has slipped in the last several weeks despite posting solid second quarter results at the end of July. The e-commerce titan is far from a one-hit-covid-wonder and digital retail still has plenty of growth runway left.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Apple Inc. (AAPL) : Free Stock Analysis Report
Target Corporation (TGT) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Sonos, Inc. (SONO) : Free Stock Analysis Report
Shopify Inc. (SHOP) : Free Stock Analysis Report
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