6 Must-Buy Tech Giants At Deep Discount Amid Recent Turmoil

Wall Street rebounded on Sep 9, after facing a terrible pull down in the last three trading days, which were the worst-performing days in a row since April. This happened after markets opened this month on a strong note, continuing the momentum of the last five months' rally. Historically, September is known as the worst-performing month in Wall Street. Market participants started panicking that the coronavirus-defying rally would terminate this month.

Technology Sector Leads Market Mayhem

The technology sector pulled down the overall market after being the predominant driver for the impressive showing over the last five months. It was a technology that had helped Wall Street to exit a coronavirus-induced short bear market and form a new bull market. However, on the due course of the market's V-shaped recovery from its recent trough on Mar 23, technology stocks got overvalued, as stated by many financial experts.

Within the S&P 500 Index, the technology sector plunged 12.6% from Sep 3 to Sep 8. The tech-heavy Nasdaq Composite plummeted 10.3% and entered into correction territory, marking the index's worst-ever performance in three consecutive days.

However, the recent turmoil in this sector has resulted in a handful of technology stocks with a favorable Zacks Rank trading at a deep discount to their 52-week high price that they recorded within the past month. At this stage, investment in these stocks likely to be prudent.

Tech Momentum to Continue

We must not forget that the growing demand for high-tech superior products has been a catalyst for the sector in an otherwise tough environment. A series of breakthroughs in 5G wireless network, cloud computing, predictive analysis, AI, self-driving vehicles, digital personal assistants and IoT, have boosted the overall space.

Let's consider that the coronavirus-related problems will stay in 2020 and no vaccine or a definite line of treatment appears in the near future. The technology sector would become one of the biggest beneficiaries being the new normal for communication.

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Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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