2 Tech Stocks To Buy for the Big Rebound

Last week, the S&P 500 marked a modest 0.44% gain. While momentum has moderated compared to the week before, a closer look at how those gains were distributed reveals an interesting picture.

Amid an exceptionally strong earnings season and lowering expectations of rate hikes, tech stocks are leading the charge. And while this renewed degree of risk tolerance does represent an opportunity, investors should consider the bigger picture regarding the sector — warts and all.

Stretched valuations and a sector that has delivered strong returns in years past mean that the easy trades are over. Opportunities still exist in great numbers, but judiciously picking which stocks to invest in is the wisest course of action. And that means screening for elite fundamentals.

Properly researching just a handful of names takes time. Properly researching an entire sector, then comparing and contrasting the stocks within it is incredibly time-consuming… and all the while, opportunities slip by. There is, however, a way to expedite the process … all you have to do is turn to …

Technology Stock Strategy

Our in-house quant system takes a look at 4,600 stocks on a daily basis, and grades them on the basis of 115 metrics, split across 7 categories. That data is distilled into a simple, approachable metric — a stock’s Zen Rating.

Our highest grade, a Zen Rating of A, equivalent to a Strong Buy recommendation, is only given to the stocks that rank in the top 5% on overall fundamental strength. A bit of quick math tells us that 5% of 4,600 is 230 — and while that is a good start, that is still plenty of tickers to consider on any given day. That’s not the end of it, however — you can speed things along by taking a look at one of our exclusive Zen Strategies.

Each strategy is a portfolio consisting of just 7 stocks, hand-picked to deliver market-beating returns. There are 11 portfolios in total — today, we’ll be taking a look at a Strategy that has already delivered a 58.84% return since the start of the year, blowing the S&P 500’s 13.5% gain in the same timeframe out of the water. Within the last 30 days alone, it has provided an 11.52% return. This week, the spotlight is on our Technology Stock Strategy.

Without further ado, let’s take a closer look at 2 very interesting tickers from the portfolio…

DHI Group (DHX)

DHI Group operates specialized online recruiting platforms, primarily Dice for technology professionals and ClearanceJobs for workers with U.S. security clearances, connecting employers with hard-to-find skilled candidates. DHX currently ranks in the top 2% of everything we track, giving it a Zen Rating of A — on top of that, it’s the 3rd highest-rated stock in the B-rated App industry.

DHX earns high marks on both Value and Growth, which is a rare sight. For the former, it’s in the top 20% — for the latter, it’s in the top 17%. Thanks to a solid balance sheet, DHI also comes in at the top 11% for Financials. Next up we have Sentiment, our smart money rating — and thanks to the fact that Wall Street’s average price target implies an upside of 70%, here, DHX ranks in the top 9%.

The one area where the stock isn’t exceptional is Safety — there, DHI Group ranks right down the middle. The business has notched 2 earnings beats in a row — having beaten estimates by 400% and 50%. Despite the impressive results, DHX has dipped by 5.7% since the last quarterly report — giving investors an enticing discount.

Riskified (RSKD)

Riskified provides AI-powered fraud prevention and risk-management software for e-commerce merchants. At the moment, RSKD ranks in the top 1% of all the stocks we track, giving it a Zen Rating of A — and it’s also the 2nd highest-rated stock in the B-rated App industry. 

RSKD has rallied by 24% since the stock’s latest quarterly report on August 12, putting it in the top 28% of the stocks we track for Momentum. Once again, we’ve got a strong balance sheet — which puts Riskified in the top 14% for Financials. Where it truly shines, however, are Sentiment, Artificial Intelligence, and Growth — areas where the stock ranks in the top 6%, top 6%,  and top 2%, respectively. The only real knock against it is Value — and even there, RSKD ranks as slightly above average.

While the post-beat rally was significant, there’s plenty of cause for optimism. Management raised guidance, explicitly named new customers as a major contributor to growth, and noted that those wins were spread across both the domestic and international markets. 

Interested In More Great Stock Picks?

The 2 stocks highlighted above are just a fraction of what you get from our proven Technology Stock Strategy.

That’s because each day our system recalibrates — and Zen Strategies members get access to the top 7 technology stocks based on 115 different parameters that point to outperformance. 

See all Top 7 Technology Stocks here >

However, maybe none of the stocks you’ve seen here have caught your eye. Perhaps you would like to see all 11 of our market beating strategies including Growth, Momentum, Value, and our coveted AI Factor model. 

Each featuring the top 7 stocks.

Each featuring tremendous performance.

We spell it all out in this timely presentation below that lives up to its name:

77 Best Stocks Now! > 

What to Do Next?

• 77 Best Stocks NOW! >
• Options Trading with the Zen Ratings >
• 2 New Stocks to Buy from Steve Reitmeister >

Want to get in touch? Email us at news@wallstreetzen.com.