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3 Large-Cap Tech Stocks to Buy in Q3 Earnings Season Amid Trade War Optimism

Benjamin Rains


Welcome to the latest episode of the Full-Court Finance podcast from Zacks Investment Research where Associate Stock Strategist Ben Rains dives into some of the latest U.S.-China trade war updates, including President Trump’s optimism. We then look at three large-cap technology stocks to consider buying during third-quarter earnings season.  

All three major U.S. stock indexes surged Friday on the back of positive U.S.-China trade war updates, spurred by economic bellwethers like Caterpillar CAT and Intel INTC. The U.S. and China have reportedly agreed in principle to “phase one” of a trade deal.

Trump and U.S. officials seem more optimistic than their Chinese counterparts at the moment. But President Trump took to Twitter Sunday to reiterate trade positivity after China came out with a more subdued take on the recent meetings.

Clearly, broader trade-related and geopolitical issues remain between the world’s two largest economies. Nonetheless, Wall Street appears to be happy enough with the recent progress. Therefore, stocks could climb as we head into Q3 earnings season, especially those that perform well (also read: Here's What to Expect as Q3 Earnings Season Revs Up).

With this in mind, we looked at three large-cap tech stocks that all boast either a Zacks Rank #1 (Strong Buy) or #2 (Buy) heading into earnings season.

We start with a look at why Microsoft MSFT shares appear so strong right now as it continues to outperform all of the so-called FAANG—Facebook, Amazon AMZN, Apple AAPL, Netflix NFLX, Google GOOGL—stocks over the last 12 months.

The next company we explore is social media giant Facebook FB. Full-Court Finance then closes with a look at Chinese e-commerce and cloud computing firm Alibaba BABA.

As a reminder, if you feel that we missed something, or if you have any topic suggestions, shoot us an email at podcast@zacks.com. Make sure to check out all of our other audio content at zacks.com/podcasts, and remember to subscribe and leave us a rating wherever you listen to your podcasts.

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