Zacks Investment Ideas feature highlights: Credit Suisse, Arista Networks, DocuSign and Infineon
For Immediate Release
Chicago, IL – April 3, 2023 – Today, Zacks Investment Ideas feature highlights Credit Suisse CS, Arista Networks ANET, DocuSign DOCU and Infineon Technologies IFNNY.
Buy These Tech Stocks for the Momentum Wave
Tech stocks are off to a resilient start as we wrap up the first quarter of 2023. Impressively, the technology sector held up throughout the month as other areas of the market declined amid financial concerns stemming from the collapse of Silicon Valley Bank and Credit Suisse.
With the Nasdaq up 16% this year, let's take a look at some top-rated tech stocks that have an “A” Zacks Style Scores for Momentum at the moment.
Arista Networks
Sporting a Zacks Rank #1 (Strong Buy), Arista Networks is a cloud networking solutions provider for data centers and cloud computing environments.
YTD Performance:Trading at $166 per share, Arista stock is up +37% year to date to easily top the Nasdaq’s +16% and the S&P 500’s +6. The earnings estimate revisions have been the catalyst here which attributes to Arista’s high Zacks Rank.
Fiscal 2023 EPS estimates are still up 11% during the quarter with FY24 earnings estimates soaring 15%. Arista’s earnings are now projected to climb 26% this year and jump another 11% in FY24 at $6.44.
DocuSign
Next up is DocuSign which sports a Zacks Rank #2 (Buy). The usage of DocuSign’s Agreement Cloud is more common as the software suite automates and connects the entire agreement process.
YTD Performance: At $58 a share, DocuSign stock is up +5% this year to trail the broader indexes. However, earnings estimates have recently trended higher making DOCU look attractive with shares still 49% from their 52-week highs.
Supporting more upside in DocuSign stock, its current fiscal 2024 earnings estimates have gone up 9% over the last 30 days with FY25 EPS estimates up 5%. DocuSign’s earnings are now expected to jump 15% in FY24 and rise another 10% in FY25 at $2.57 per share.
Infineon Technologies
Among chipmakers, Infineon Technologies could have more upside with a Zacks Rank #2 (Buy). Infineon is an application-oriented semiconductor solutions provider for use in speech and data communications, peripherals, wireless communications, automotive and industrial electronics, security and chip cards along with memory products.
YTD Performance: Infineon stock trades at $40 per share and has soared 36% YTD to outperform the S&P 500 and Nasdaq. With earnings estimates on the rise, Infineon’s P/E valuation also stands out and supports more upside.
Infineon stock trades at 16.7X forward earnings which is nicely below the industry average of 19.6X and the S&P 500’s 18.6X. Even better, Infineon trades 66% below its decade high of 49.5X and at a 21% discount to the median of 21.2X.
Takeaway
Rising earnings estimates are a great sign that these tech stocks will be top performers this year, especially if the rally in the broader technology sector continues. Furthermore, their unique businesses can reach a wide range of clients making them viable investments for 2023 and beyond.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Credit Suisse Group (CS) : Free Stock Analysis Report
Infineon Technologies AG (IFNNY) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
DocuSign (DOCU) : Free Stock Analysis Report
