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The technology sector, which was the major victim of inflation fears and lofty valuation concerns, has regained solid momentum in recent months. Diminishing worries about runaway inflation compelled investors to pile back into the tech-oriented growth stocks. Additionally, the Delta variant of COVID-19 brought back the lure for stay-at-home trends that have resulted in higher demand for the technology space once again.

In fact, tech titans roared at the end of June with Facebook (FB Quick Quote FB - Free Report) hitting $1 trillion and Microsoft (MSFT Quick Quote MSFT - Free Report) topping $2 trillion market cap for the first time. The Amazon (AMZN Quick Quote AMZN - Free Report) stock is hovering near record highs while Apple (AAPL Quick Quote AAPL - Free Report) has become the trending stock ahead of its next iPhone launch. Alphabet (GOOGL Quick Quote GOOGL - Free Report) is also performing well.

These five companies combined now account for 23.3% of the total market capitalization of the S&P 500 Index. Total Q2 earnings from the group of five companies are expected to be up 48.4% on revenue growth of 29.2%. Microsoft, Alphabet, and Apple are scheduled to release their earnings on Jul 27 while Facebook will report on Jul 28. Amazon is slated to report on Jul 29.

Microsoft

Microsoft has a Zacks Rank #3 (Hold) and an Earnings ESP of 0.00%. According to our methodology, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

The stock witnessed no earnings estimate revision for the fourth quarter fiscal 2021 over the past 30 days. The Zacks Consensus Estimate indicates substantial earnings growth of 30.1% and revenue growth of 15.9% from the year-ago quarter. Microsoft’s earnings track is impressive, with the last four-quarter positive earnings surprise being 14.83%, on average. The stock belongs to a top-ranked Zacks industry (top 44%) and has gained 10.7% over the past three months.

Alphabet

Alphabet has a Zacks Rank #3 and an Earnings ESP of +7.01%. It saw a positive earnings estimate revision of 11 cents over the past 7 days for the to-be-reported quarter. Analysts raising estimates right before earnings — with the most up-to-date information possible — is a good indicator for the stock. The company’s earnings surprise track over the past four quarters is good with the beat being 43.02%, on average. Earnings and revenues are expected to grow 96.3% and 45.8%, respectively, from the year-ago quarter. Additionally, the stock falls under a bottom-ranked Zacks industry (bottom 15%). The Internet behemoth has surged about 15% in the past three months.

Apple

Apple has a Zacks Rank #3 and an Earnings ESP of +3.40%. The stock saw positive earnings estimate revision of a penny over the past 30 days for third-quarter fiscal 2021 and its earnings surprise history is strong. It delivered an earnings surprise of 23.01%, on average, over the past four quarters. Apple is expected to report substantial earnings growth of 53.8% from the year-ago quarter. Revenues are expected to increase 22.5% year over year. It belongs to a top-ranked Zacks industry (top 44%). The stock is up 10.2% in the past three-month timeframe.

Facebook

Facebook has a Zacks Rank #3 and an Earnings ESP of +7.52%. The social media giant saw positive earnings estimate revision of a penny for the to-be-reported quarter over the past 30 days. The current Zacks Consensus Estimate for the yet-to-be reported quarter indicates substantial year-over-year earnings growth of 68.9%. Revenues are expected to increase 49.2%. Facebook delivered an earnings surprise of 31.1%, on average, in the last four quarters. The stock belongs to a bottom-ranked Zacks industry (bottom 15%). Shares of FB have gained 22% in the past three months.

Amazon

Amazon has a Zacks Rank #2 and an Earnings ESP of -13.23%. The stock saw no earnings estimate revision over the past 30 days for the second quarter. The Zacks Consensus Estimate represents substantial year-over-year earnings growth of 18.1% and revenue growth of 29.4%. Amazon’s earnings surprise history is impressive, with an average beat of 180.8% for the last four quarters. However, the stock falls under a bottom-ranked Zacks industry (bottom 24%). The online e-commerce behemoth has witnessed share price increase of 7.2% in the past three months.

ETFs to Tap

Given this, investors may want to play these stocks with the help of ETFs. Below we have highlighted six ETFs having the largest exposure to FAANGs.

MicroSectors FANG+ ETN (FNGS Quick Quote FNGS - Free Report): This ETN is linked to the performance of the NYSE FANG+ Index, which is equal-dollar weighted and designed to provide exposure to a group of highly traded growth stocks of next-generation technology and tech-enabled companies. The note accounts for a 10% share in each of the FAANG stocks and has a Zacks ETF Rank #3.

iShares Evolved U.S. Technology ETF (IETC Quick Quote IETC - Free Report): This fund employs data science techniques to identify companies with exposure to the technology sector. The five firms account for a combined 45.6% share in the basket.

Vanguard Mega Cap Growth ETF (MGK Quick Quote MGK - Free Report): This ETF offers exposure to the largest growth stocks in the U.S. market and has a Zacks ETF Rank #2. The five firms account for a combined 40.7% share in the basket.

Blue Chip Growth ETF (TCHP Quick Quote TCHP - Free Report): This fund focuses on companies with leading market positions, seasoned management, and strong financial fundamentals. It accounts for a combined 40.3% in the five firms.

Invesco QQQ (QQQ Quick Quote QQQ - Free Report): This ETF focuses on 100 of the largest domestic and international nonfinancial companies listed on the Nasdaq Stock Market based on market capitalization. This fund makes up for 37.6% share in the in-focus firms and has a Zacks ETF Rank #2 with a Medium risk outlook.

iShares Expanded Tech Sector ETF (IGM Quick Quote IGM - Free Report): This product offers broad exposure to the technology sector and technology-related companies in the communication services and consumer discretionary sectors. It makes up for about 36.8% in the five big tech names and has a Zacks ETF Rank #3 with a Medium risk outlook.