7 A-Rated Tech Stocks to Buy This July
I continue to be a big fan of tech stocks, particularly for growth-oriented portfolios. And fortunately, there are plenty of A-rated tech stocks to buy right now to give your money a chance to work for you this July.
Tech stocks are more in line with growth portfolios over value portfolios because many of them are growing companies. Tech companies are working on groundbreaking products and breakthroughs that, if successful, will push the company’s value (and stock price) higher.
Tech stocks also often represent the most disruptive and exciting developments, such as artificial intelligence, machine learning, cloud computing and more.
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But just grabbing a handful of tech stocks and hoping for the best is a losing strategy. Instead, I suggest you consult the Portfolio Grader to find some A-rated tech stocks to buy.
The Portfolio Grader evaluates all stocks on an A through F scale, so you know that the A-rated tech stocks are the best of the best.
Here are seven tech stocks that are getting great scores based on factors like earnings history and growth, analyst sentiment, momentum and other key factors.
Oracle (ORCL)
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Oracle (NYSE:ORCL) has been around long enough that you may think that it should be a value stock instead of a growth stock. After all, how can a company in business for more than 55 years still grow fast enough to be a growth stock?
But for Oracle, growth is the name of the game. The computing company is leaning hard into the AI boom. Its second-generation cloud service, Gen2 Cloud, is a leading platform for customers that want to run generative AI workloads.
The cloud is a huge factor for Oracle as it consistently reinvents itself to stay on the forefront. It bought cloud software company NetSuite in 2016 and paid $28 billion last year for a healthcare IT software company, Cerner.
ORCL stock is up 42% in 2023 and has an “A” rating in the Portfolio Grader.
Nvidia (NVDA)
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Nvidia (NASDAQ:NVDA) may be the company most associated with generative AI – the technology that became a must have for many tech companies after OpenAI’s ChatGPT was released this year.
Nvidia is a leading provider of graphic processing units and accelerated processing systems. Its chips are in keen demand from tech companies scrambling to create and power their own generative AI platforms.
Nivida increased its Q2 revenue forecast from $7.3 billion to $11 billion because of the demand for its chips. That helped push the company’s market capitalization to $1 trillion this year, making it the fifth-largest publicly traded company in the world. The stock price is up nearly 190% this year.
NVDA stock has an “A” rating in the Portfolio Grader.
Super Micro Computer (SMCI)
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If you are interested in technology, you must have the right hardware to run the most up-to-date programs and enjoy the best platforms. That’s where Super Micro Computer (NASDAQ:SMCI) comes in.
The California-based company (also known as Supermicro) develops and manufactures computer server and storage solutions and sells motherboards, power supplies and networking equipment.
The company is working to become a total IT solutions provider that includes servers, artificial intelligence, storage, Internet of Things, software and services products.
Earnings for the company’s fiscal third quarter included $1.28 billion in revenue and earnings per share of $1.63. It issued guidance for Q3 for $1.8 billion in revenue and $2.46 EPS.
SMCI stock is up 210% this year and has an “A” rating in the Portfolio Grader.
ClearOne (CLRO)
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One result of the Covid-19 pandemic is greater acceptance of working from home. Companies that were forced to let workers telecommute during the pandemic found that, in many cases, employees can be just as efficient. And workers are now reluctant to return to offices, preferring to avoid commuting and the hassles of pre-Covid work.
That’s where ClearOne (NASDAQ:CLRO) is attempting to operate. The company provides professional-level audio and video products and cloud-based collaboration services for professional home offices and commercial spaces.
For home offices, that means products as simple as speakerphones and microphones or as elaborate as ceiling-mounded USB microphone arrays and Bluetooth-enabled wall panels.
Earnings for the first quarter were a disappointment, however. Revenue of $4.2 million was a significant drop from $7.5 million a year ago.
The company attributed the drop to declining demand for video products and supply chain delays. The company reported a net loss of $800,000, or 3 cents per share, compared to a net loss of $2 million, or 8 cents per share, a year ago.
However, the company is in solid financial shape, it has only $1.7 million in debt and cash and cash equivalents of $59 million. A year ago, it had cash of only $1 million.
ClearOne is a small company (market capitalization of only $17 million), and the price is volatile. Granted, it’s not for everyone. But it’s worthy of consideration and has an “A” rating in the Portfolio Grader.
Perion (PERI)
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Perion (NASDAQ:PERI) is an Israeli-based advertising and communications company specializing in digital ads on internet search engines, social media advertising and connected TV ads, as seen on streaming video content.
It uses AI and machine learning to connect ad-space buyers and sellers through its platform to optimize transactions for both sides. It’s an innovative approach to advertising.
Perion also gets some extra headwinds from a strategic partnership with Microsoft (NASDAQ:MSFT), which incorporated ChatGPT’s generative AI into its Bing search engine. Perion said it saw 49% year-over-year growth in average daily searches in the first quarter.
Earnings for the first quarter included revenue of $145.2 million, an increase of 16% from a year ago. EPS was 48 cents per share, 45% better than a year ago.
PERI stock is up 22% in 2023 and has an “A” rating in the Portfolio Grader.
Opera (OPRA)
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Based in Norway, Opera (NASDAQ:OPRA) provides internet browsers for desktop and mobile devices. And like other technology companies, it’s leaning hard into AI.
Last month it launched its newest Opera browser, Opera One, with what it says is the first browser to include integrated browser AI with generative AI capabilities, which it calls Aria.
It connects to OpenAI’s ChatGPT “and is enhanced by additional capabilities such as adding live results from the web,” the company says. “Aria is both a web and browser expert that allows users to collaborate with AI while looking for information on the web, generating text or code, or getting their product queries answered.”
Also last month, Opera released its Aria browser on Android devices.
Earnings for the first quarter included revenue of $87.05 million, an increase of 21.6% from a year ago. EPS of 17 cents also topped analysts’ expectations.
OPRA stock started 2023 at only $6.29 per share and is already up 345%. But there’s more to be had here, and OPRA has an “A” rating from the Portfolio Grader.
Hello Group (MOMO)
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Hello Group (NASDAQ:MOMO) uses social networking to connect people in China. It has online dating sites Omom and Tantan. Another segment, called Qool, provides music services, film distribution and film promotion.
The stock price fell significantly during the coronavirus shutdowns, which started first and extended the longest in China. Earnings in the first quarter showed year-over-year declines, with revenue of $410.5 million, a drop of 10.5% from a year ago. Monthly active users on the Momo app were down nearly 4% on a year-over-year basis, while the Tantan app saw a decrease of 23.8%.
But there’s reason for optimism in 2023 as China emerges from the Covid-19 shutdowns and people are more inclined to meet up. Guidance for Q2 showed those losses slowing, with revenue expected to decline somewhere between 0.3% to 3.5% for the quarter. As China reopens, those losses should end entirely.
Hello Group also issued a special cash dividend of 72 cents per share in the first quarter and is continuing with a $200 million share buyback program authorized last year. As of June 6, the company repurchased $57.2 million in shares.
MOMO stock is up 10% on the year and has an “A” rating in the Portfolio Grader.
On the date of publication, Louis Navellier had long positions in NVDA, SMCI, PERI, OPRA and MSFT. Louis Navellier did not have (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
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