3 Blue Chip Tech Stocks To Buy Now

The technology sector has been on fire throughout 2017, and as we look ahead to the New Year, investors are expecting this trend to continue. While many will feel that they have already missed their chance to win big on tech stocks, there are still plenty of opportunities to cash in as share prices continue to soar.

Of course, this is not the first notable tech rally. The cloud of the dot-com bubble still lingers over this sector, and plenty on Wall Street remain hesitant to load up on tech stocks because of it.

However, unlike the dot-com bubble, there is real earnings and revenue growth fueling this tech rally. In fact, the average P/E ratio of our “Computer and Technology” sector currently sits at 23.89, which compares favorably to the dot-com era’s average that routinely soared into the 200s.

Another interesting trend in today’s tech rally is that, rather than obsessing over the next big thing, investors seem to rewarding tried-and-true brands for their respectable growth. This means that some of the strongest tech stocks are the household names that consumers already know and love.

With that said, check out these three blue chip tech stocks to buy now:

1. Intel Corporation ( (NASDAQ:INTC) )

As the world’s largest semiconductor manufacturer, Intel has its hands in nearly every corner of the modern tech world. As cloud computing and the Internet of Things continues to grow, Intel should continue to benefit. And right now, the chip-making behemoth is a Zacks Rank #1 (Strong Buy).

Intel crushed earnings estimates by over 26% in its recent quarter, leading to a tidal wave of positive estimate revisions. Our consensus estimate for its upcoming fiscal year has gained 18 cents in just 30 days, and now we expect the company to continue its EPS expansion. Still, with a P/E ratio of just 13.83, Intel shares look undervalued, and income investors will not mind the stock’s 2.43% dividend.

2. Nvidia Corporation ( (NASDAQ:NVDA) )

Thanks to its strategic investments in datacenters and artificial intelligence, Nvidia has emerged as one of Wall Street’s most popular stocks this year. Of course, the company’s industry-leading GPUs remains its backbone and are the number one choice for PC gamers worldwide. Nvidia shares have gained over 100% year-to-date, and now that the stock sports a Zacks Rank #1 (Strong Buy), it is showing few signs of stopping.

Our current consensus estimates are calling for Nvidia to end the current fiscal year with earnings growth of 60%, and that expansion is expected to continue with EPS growth of an additional 11% next year. Nvidia is also expected to grow its revenues by another 16% in the upcoming year. What’s more, management is strengthening its financial stability with cash flow growth of 124% right now.

3. Oracle Corporation ( (NYSE:ORCL) )

Oracle has served as one of the most recognizable names in enterprise computing for years. The company successfully adapted to the cloud computing boom and is now one of the strongest cloud stocks on the market. Right now, Oracle is sporting a Zacks Rank #2 (Buy), as well as an “A” in the weighted-average VGM category of our Style Scores system.

Thanks to a strong management team, Oracle continues to operate efficiently. The company’s net margin of 25% is one of the best in this space, and its RoE of 21% proves its value to shareholders. On top of this, Oracle is sporting a respectable P/E ratio of 16.56, and with a PEG ratio of 1.69, investors can be sure that they are not overpaying for the company’s modest growth.

Bottom Line

While there are no guarantees in the stock market, several bullish indicators point to continued strength in the tech sector. With corporate tax reform on the horizon and earnings growth already present, these blue chip tech companies should be able to continue their dominance.

Want more stock market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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