3 Top-Ranked Tech Stocks to Buy for Growth
Many investing styles exist, such as those that target income-generating assets or those with a preference for value.
Of course, some target growth, focusing on companies with big expectations. It’s critical to note that many of these stocks carry high valuations, reflecting the premium investors pay for future growth.
For those with a preference for growth stocks, Uber Technologies UBER, Wix.com WIX, and Asure Software ASUR could all be great considerations.
All three are expected to enjoy solid growth in their current fiscal years and sport favorable Zacks Ranks, with the latter indicating bullishness among analysts. Let’s take a closer look at each.
Wix.com
Wix.com, a current Zacks Rank #1 (Strong Buy), is a cloud-based web development platform. Analysts have taken their earnings expectations higher across the board.
Image Source: Zacks Investment Research
The company is expected to witness a notable recovery in its current year, with the Zacks Consensus EPS Estimate of $3.22 well above the -$0.17 per share reported in FY22. Wix.com’s sales are forecasted to see a nearly 12% jump in FY23, followed by an additional climb of 11% in FY24.
WIX has enjoyed steady sales growth throughout its history, as shown below.
Image Source: Zacks Investment Research
In addition, Wix.com’s quarterly results came in nicely above expectations in its latest release just on August 3rd, exceeding the Zacks Consensus EPS Estimate by 130% and delivering a 2% revenue beat. The print reflected the fifth consecutive quarter exceeding both consensus earnings and revenue estimates.
Uber Technologies
Uber has seen its near-term earnings outlook shift positively across all timeframes, helping land the stock into a Zacks Rank #1 (Strong Buy). The revisions trend has been particularly notable for its current year, as we can see below.
Image Source: Zacks Investment Research
The company’s forecasted growth is hard to ignore, with consensus earnings expectations for its current and next fiscal year suggesting growth rates of 110% and 150%, respectively. Sales growth also looks to remain robust, forecasted to climb 17% in FY23 and 18% in FY24.
UBER shares are a tad expensive, with the current 2.4X forward price-to-sales ratio sitting on the higher end. Still, on a relative basis, the value is well below the 3.8X five-year median.
Image Source: Zacks Investment Research
Asure Software
Asure Software, a current Zacks Rank #1 (Strong Buy), provides Web-based workforce management solutions. Analysts have become notably bullish regarding its current fiscal year, with the $0.51 per share Zacks Consensus Estimate up 130% since last August.
Image Source: Zacks Investment Research
Like WIX, Asure Software has been a consistent earnings performer as of late, exceeding consensus earnings and revenue expectations in each of its last four releases. In the latest print delivered on August 7th, ASUR crushed earnings expectations and reported a 20% sales surprise.
As we can see below, the company’s revenue has recently seen an acceleration.
Image Source: Zacks Investment Research
The growth is slated to continue, with expectations for its current year alluding to a 240% jump in earnings on 24% higher revenues. And looking ahead to FY24, expectations suggest a further 30% earnings growth paired with 8% higher sales.
Bottom Line
Growth-focused investors have been rewarded handsomely so far in 2023 following a harsh showing last year, with many delivering market-beating returns.
And for those interested in this investing style, all three stocks above – Uber Technologies UBER, Wix.com WIX, and Asure Software ASUR – precisely fit the criteria.
On top of strong expected growth, all three have enjoyed positive earnings estimate revisions, indicating near-term optimism among analysts.
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