3 Tech Stocks With Fresh Catalysts

Last week saw a pretty wide divide in performance across the market’s major sectors. Some finished comfortably in the red, while others managed to push higher.

Technology was the clear standout.

That sort of strength can make it tempting to treat tech as one big trade. In reality, the sector covers an enormous range of businesses, which differ dramatically from one another — both in terms of what they do and in terms of actual fundamentals.

That makes picking the right names a much tougher task than simply deciding that you’re bullish on tech.

Properly comparing hundreds of stocks across all of those different businesses takes time. Fortunately, there’s a way to speed the process along…

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 delivered a 68.8% return since the start of the year, compared to the S&P 500’s 12.6% gain over the same timeframe.

The recent numbers are impressive, too. Within the last month, the portfolio has returned 9.89%, compared to just 0.64% for the S&P 500.

This week, the spotlight is on our Technology Stock Strategy.

Without further ado, let’s take a closer look at 3 interesting tickers from the portfolio…

Digi International (DGII)

Digi International provides Internet of Things (IoT) products and services that help businesses connect, monitor, and manage devices and equipment. DGII currently ranks in the top 1% of everything we track, giving it a Zen Rating of A — and it’s also the top-rated stock in the B-rated Communication Equipment industry.

DGII earns strong marks almost across the board. Financials ranks in the top 20% of the stocks we track, followed by Momentum at the top 12%. Analysts expect earnings to grow by almost 64% annually, helping explain why Growth comes in at the top 10%. Safety and Sentiment are even stronger at the top 7%, while Artificial Intelligence leads the way at the top 6%.

The one area where the stock is unexceptional is Value — but even there, it ranks in the top 40% of the market.

In addition, there’s a fresh catalyst at play. On October 1, Digi agreed to acquire Disruptive Technologies for $130 million, adding more than 250,000 deployed sensors and giving the business its first meaningful commercial presence in Europe. Management expects the acquisition to contribute roughly $9 million in additional adjusted EBITDA and free cash flow in fiscal 2028.

RingCentral (RNG)

RingCentral provides cloud-based communications software spanning business phone systems, messaging, video, and customer engagement. RNG currently ranks in the top 2% of all the stocks we track, giving it a Zen Rating of A — and it’s also the 3rd highest rated stock in the B-rated App industry.

Thanks to a PEG ratio of just 0.88x, it’s not hard to see why RNG ranks in the top 16% for Value. Momentum is stronger still at the top 7%. Analysts expect earnings to grow by almost 70% annually, helping put RingCentral in the top 6% for Growth. Safety also comes in at the top 6%, while Financials is the standout — there, RNG ranks in the top 1% of everything we track.

Sentiment is closer to the middle of the pack, while Artificial Intelligence is the one Component Grade that falls below average, but on the whole, the positives outshine the less impressive facets by far.

RingCentral is also leaning further into AI. New integrations with ChatGPT and Claude allow customers to bring their communications data directly into those platforms — potentially making RNG’s core offering more valuable as businesses incorporate AI into their day-to-day workflows. 

Micron Technology (MU)

Micron Technology develops memory and storage semiconductors used across data centers, computers, mobile devices, and other electronics. MU currently ranks in the top 1% of everything we track, giving it a Zen Rating of A — and it’s also the 2nd highest-rated stock in the A-rated Semiconductor industry.

Micron’s strongest scores are clustered in some particularly important areas. Sentiment remains comfortably above average at the top 23%. Thanks in part to a PEG ratio of just 0.44x, MU ranks in the top 5% for Value. Momentum also comes in at the top 5%, while analysts expect earnings to grow by roughly 54% annually, helping put the stock in the top 3% for Growth. Financials are stronger still, ranking in the top 2% of everything we track.

Safety is the clear weak point, thanks to a Beta of 1.91. On the other hand, it’s impossible to ignore the track record of operational excellence, seeing as how Micron has notched 14 earnings beats in a row.

Management is expecting an even stronger start to fiscal 2027, guiding for roughly $61.5 billion in first-quarter revenue as demand for memory tied to AI infrastructure continues to grow.

Interested In More Great Stock Picks?

The 3 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 we’ve featured 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:

10 Minutes a Month to Beat the Market >

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.