The sudden return of volatility to global stock markets has created buying opportunities in large-cap tech stocks as the sector’s investors look to rebound from recent selloffs. The world’s tech leaders have dominated Wall Street over the past two years, and now, investors might have a fresh chance to buy a few previously red-hot stocks at a discount.
Of course, this recent volatility has made some investors hesitant, with bearish traders quick to draw similarities between this latest tech rally and the infamous dot-com bubble of the late 90s and early 2000s.
However, unlike the dot-com bubble, there is real earnings and revenue growth fueling this tech rally. In fact, the average P/E ratio of our “Computer and Technology” sector currently sits at 21.3, which compares favorably to the dot-com era’s average that routinely soared into the 200s.
Another interesting trend in today’s tech rally is that, rather than obsessing over the next big thing, investors seem to rewarding tried-and-true brands for their respective growth. This means that some of the strongest tech stocks are the household names that consumers already know and love.
With that said, check out these three blue-chip tech stocks to buy now:
1. Amazon.com, Inc. (AMZN – Free Report)
Amazon does not need much of an introduction, but investors should always remember that the company has its hands in much more than just the e-commerce business that brought it fame. The Seattle-based firm is now a legitimate brick-and-mortar retailer, cloud computing provider, entertainment media publisher, and more. AMZN is also currently sporting a Zacks Rank #2 (Buy).
Amazon’s track record speaks for itself, as shares have gained nearly 70% in the trailing one-year period. The stock has shrugged off market-wide volatility and continues to test new highs. Earnings are expected to improve by a staggering 180% this year, with sales surging nearly 34%. AMZN is a staple stock that should appease investors looking for near-term strength and long-term, buy-and-hold gains.
