When you’re looking for good investment options in the fourth quarter, top tech stocks should be at the top of your list. And the best way to evaluate tech stocks is by using the Portfolio Grader.
Tech companies, by nature, are innovative and, therefore, are in the best position to capitalize on emerging trends and disrupt industries.
Tech stocks also often benefit from network effects, as their products or services become more valuable as more users adopt them. This is a formula for expanded growth and sustained market dominance.
The Portfolio Grader’s rating system can help you identify companies that are financially sound, have robust growth prospects and efficient management.
Tech stocks with an “A” rating can have a record of consistent earnings growth, which can translate into attractive long-term returns for investors.
Tech stocks with “A” ratings from InvestorPlace Portfolio Grader offer a combination of growth potential, financial strength, and innovation that can make them attractive additions to an investor’s portfolio.
However, it’s crucial to conduct thorough research and consider one’s own investment objectives and risk tolerance before making any investment decisions.
The Portfolio Grader evaluates stocks based on earnings growth, sales growth, profitability, market sentiment and momentum.
Here are seven that get the best grades in the fourth quarter of 2023.
Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) has been on my buy list most of the year, and rightfully so. The chip maker’s stock is up more than 200% and its growth has been off the charts.
Consider the revenue numbers in recent quarters: revenue in the fiscal third quarter of 2023 (ending Oct. 30, 2022) was $5.93 billion. That jumped to $6.05 billion in fiscal Q4 2023, then $7.19 billion in Q1 2024.
From there, things got a little crazy. They were $13.51 for Q2 2024, and projections that the third quarter will be as much as $16 billion in revenue.
That kind of growth helped Nvidia more than double its market cap, from $454 billion on July 31, 2022, to $1.1 trillion today.
The growth of generative artificial intelligence is fueling this charge. Nvidia has as much as 95% of the AI computing market with its semiconductors.
That’s why despite being up 200% in 2023, I think Nvidia has plenty left in the tank. It gets an “A” rating in the Portfolio Grader.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) doesn’t have the growth story of Nvidia in 2023, but it’s having a more-than-solid year.
The parent company of Facebook and Instagram is up 162% this year after an incredibly disappointing 2022.
The Street turned pretty bearish on Meta last year as the company began dumping billions of dollars into development of the metaverse. But building a new world takes a lot of money and early reviews of the metaverse haven’t been favorable.
But Meta is also a massively successful social media and networking company, and it’s making improvements in monetizing those platforms through digital advertising.
Earnings for the second quarter included revenue of nearly $32 billion and earnings of $2.98 per share. Profits also increased from a year ago, up by 16%.
Meta also announced new generative AI tools that will make it easier for advertisers to run campaigns, and drive additional revenue into Meta’s wallet.
As long as Meta Platforms is making money from Facebook, Instagram, Reels, Threads and its other opportunities, it will turn a profit and continue its investment in the metaverse. The AI tools are a step in that direction.
META stock has an “A” rating in the Portfolio Grader.
Broadcom (AVGO)
Broadcom (NASDAQ:AVGO) designs and makes semiconductor products that support data centers, networking, software, broadband, wireless, storage and industrial applications.
Broadcom is also in the final stages of closing a deal to acquire cloud-computing company VMWare (NYSE:VMW). Analysts expect the $60 billion deal to accelerate private and multi-cloud capabilities for its customers.
Regulators in the U.S. and the U.K. have already signed off, but the deal hasn’t yet been approved by Beijing.
Q3 results included revenue of $8.87 billion, up 5% from a year ago. Guidance for the fourth quarter shows a similar growth projection, with expected revenue of $9.27 billion.
AVGO stock is up 51% this year and gets an “A” rating in the Portfolio Grader.
Oracle (ORCL)
Don’t overlook Oracle (NYSE:ORCL) as you consider the top tech stocks to buy for the fourth quarter.
The computing company doesn’t get as much attention as others who are more involved in generative AI, but Oracle is a solid pick for any portfolio.
Oracle is a leader in cloud computing, offering applications, platforms and cloud software. It also sells servers, operating systems and provides services such as consultation and education.
Its infrastructure-as-a-service and platform-as-a-service markets will keep the revenues coming in.
Earnings for the company’s fiscal first quarter 2024 were solid, with revenues of $12.5 billion up 8% from a yar ago. Adjusted EPS was up by 14%.
And there’s an AI connection for Oracle as well. Oracle’s databases will be critical to any company that wants to maintain the massive amounts of data required to operate a generative AI solution for its customers.
ORCL stock is up 35% this year and gets an “A” rating in the Portfolio Grader.
General Electric (GE)
Not all top-ranked tech companies are brand-new and shiny. General Electric (NYSE:GE) has a storied history, going back to founder Thomas Edison.
In some quarters, it’s probably known more for its legacy lightbulb business and its appliances.
But that was then, and this is now. GE went through plenty of ups and downs in its past. It made significant mistakes and had to reset the company a few times following the collapse of the subprime mortgage industry.
It got out of the lightbulb and appliance business. It got rid of its NBC Universal holdings. It even completed the spin-off of GE HealthCare Technologies (NASDAQ:GEHC) earlier this year.
The end result is a 21st-century tech company that focuses on aerospace, renewable energy solutions, wind and gas turbines, and commercial and defense aircraft engines.
Revenue in the second quarter was $16.7 billion, up 18% from a year ago. GE raised its full-year guidance, now projecting revenue growth in the low double digits instead of the high single digits. It also increased its projected EPS to a range of $2.10 to $2.30 per share from a range of $1.70 to $2 per share.
GE stock is up 68% in 2023. It gets an “A” rating in the Portfolio Grader.
Dell Technologies (DELL)
Dell Technologies (NYSE:DELL) is one of the best-known computer companies in the world. It makes laptop and desktop computers, as well as workstations, mobile devices and notebooks. It also provides cloud solutions, storage devices and software.
Like other companies, Dell is working with Nvidia technology to launch generative AI-powered services. It expects to kick off a model customization product later this month, as well as making some AI-powered professional services available.
Early next year, Dell says it will integrate generative AI into its Starburst platform analytics software. This will give users more access to multi-cloud data as they are creating AI-related workflows.
Those products are a welcome development for Dell, which gets roughly 55% of its revenue from computer sales. Adding generative AI products gives Dell the opportunity to broaden its offerings and capitalize on the hottest trend in computing today.
Dell stock is up 69% in 2023 and gets an “A” rating in the Portfolio Grader.
Jabil (JBL)
Jabil (NYSE:JBL) is a Florida-based electronics manufacturing services company.
Jabil stock is up 96% this year. About 25% of that jump followed the September announcement that its selling its mobile electronics manufacturing business to Chinese automaker BYD (OTCMKTS:BYDDY) for $2.2 billion.
BYD has a long history of selling electronic products, although it’s better known for its EV business these days.
JBL stock has an “A” rating in the Portfolio Grader.
— Louis Navellier and the Investor Place Research Staff
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Source: Investor Place