Image: Bigstock

Buying into the rally among tech stocks continues to compel investors, with the Nasdaq ending Friday’s trading session up +2%. Easing inflation has been the primary catalyst, and Intel’s (INTC - Free Report) better-than-expected Q2 results gave a boost to many chip stocks, thus offering further support.

With sentiment remaining high, here are two tech stocks investors may want to consider buying as their Q2 reports approach on Monday, July 31.

On Semiconductor (ON - Free Report)

Following Intel’s favorable Q2 report, On Semiconductor’s stock appears more intriguing and currently sports a Zacks Rank #3 (Hold). On Semiconductor is an original equipment manufacturer of a broad range of discrete and embedded semiconductor components. The company’s product line includes bipolar transistors, diodes, filters, rectifiers, and thyristors.

Earnings estimates are trending higher, and the Zacks Expected Surprise Prediction (ESP) indicates On Semiconductor may be able to beat earnings expectations on Monday. The Most Accurate Estimate has Q2 EPS pegged at $1.23 a share, which is 1% above the Zacks Consensus of $1.21 a share.

Image Source: Zacks Investment Research

An earnings beat and positive guidance could stir up some nice momentum for On Semiconductor’s stock, which has soared +69% this year. Earnings are expected to be down -9% following a tough-to-compete-against Q2 2022 that saw EPS at $1.34, but a beat looks more plausible considering ON Semiconductor has topped expectations for 12 consecutive quarters.

Annual earnings are expected to dip -8% this year, but rebound and rise 10% in fiscal 2024 at $5.40 per share. Now may be a good time to buy before On Semiconductor’s very intriguing expansion resumes.

Image Source: Zacks Investment Research

Camtek (CAMT - Free Report)

While semiconductor companies are garnishing headlines, Camtek’s stock shouldn’t be overlooked. The stock boasts a Zacks Rank #2 (Buy).

Camtek is a provider of optical inspection systems, and it’s very noteworthy that its Electronics-Measuring Instruments Industry is in the top 7% of over 250 Zacks industries. To that point, Camtek’s stock has now skyrocketed +116% this year in correlation with its strengthening business environment.

Image Source: Zacks Investment Research

Second-quarter earnings are expected to dip -9% at $0.42 per share, but Camtek has surpassed estimates for ten consecutive quarters, most recently beating expectations by 5% in May. Plus, the Zacks ESP indicates Camtek should reach its Q2 earnings expectations, with the Most Accurate Estimate also having EPS at $0.42.

Annual earnings are now expected to dip -9% this year and then rebound and jump 14% in FY24 at $1.95 per share. Earnings estimates are modestly up. Additionally, FY24 EPS projections would represent a very stellar 261% growth over the last five years, with 2020 earnings at $0.54 per share.

Image Source: Zacks Investment Research

Bottom Line

The stellar performances of these tech stocks could be catapulted if they are able to serve up strong Q2 results on Monday. With earnings estimates trending higher, this scenario is quite possible. Now may be a good time to buy.

More By This Author:

3 Buy-Rated Stocks Breaking 52-Week Highs
Altria Group Queues For Q2 Earnings: What's In The Cards?
Bull Of The Day: Dorian