3 Outperforming Tech Stocks Bucking The Downward Trend

Entrepreneur, Idea, Competence, Vision, Target

Amid the broader tech slump caused by investors’ sector rotation and concerns over rising inflation, shares of Motorola (MSI), Seagate (STX), and SS&C Technologies (SSNC) have been rallying thanks to investors’ optimism over their solid growth prospects. So, it could be wise to bet on them now.

After a solid run last year, the technology sector has witnessed a slight correction since mid-February due to investor sector rotation to capitalize on the economic recovery, fears of rising inflation and rising Treasury yields. Tech stocks’ weakness is evidenced by the Technology Select Sector SPDR Fund’s (XLK) 0.7% gains over the past three months compared to SPDR S&P 500 ETF Trust’s (SPY) 6.5% returns.

Even though the tech industry might take some time to regain its previous glory amid inflation concerns, a few tech stocks with strong fundamentals have been rallying even amid current macroeconomic conditions. With increasing demand for cloud-based and AI-integrated services, among others, the tech industry is expected to grow significantly in the near- to mid-term.

Motorola Solutions, Inc., Seagate Technology Holdings plc and SS&C Technologies Holdings, Inc. have been rallying amid the broader tech slump owing to their solid financials and consistent product and service innovations. So, we think it could be wise to bet on them now.

Motorola Solutions, Inc. 

MSI provides mission critical communications and analytics internationally. The company operates through two segments: Products and Systems Integration, and Services. Its Products and Systems Integration segment offers a portfolio of infrastructure, devices, accessories, and video security devices, while its  Services segment provides repair, technical support, and hardware maintenance services.

On May 18, MSI signed a framework agreement with BlueLight Commercial to provide emergency services in the United Kingdom with integrated video solutions for their vehicles. This could potentially increase the company’s sales in the near-term.

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