With the continuing remote working trend and increasing applications of smart tech solutions, the technology industry is expected to continue gaining in the near term. As such, we think it could be wise to bet on fundamentally sound tech stocks Analog Devices (NASDAQ:ADI), VMware (NYSE:VMW), and Synopsys (NASDAQ:SNPS). So, let’s evaluate these names closely.Even though investors rotated out of expensive tech stocks last month and earlier this month, the tech-heavy Nasdaq gained yesterday driven by stellar third-quarter earnings reports. According to a Factset report, more S&P 500 companies are exceeding EPS estimates for the third quarter than on average and beating EPS estimates by a wider margin than on average.
Furthermore, the tech industry is expected to grow in the near future due to the increasing applications of smart technology solutions across several industries. Wedbush analyst Dan Ives said, “We continue to believe this pressure on the tech sector is short-lived with our belief that tech stocks will be up 10% into year-end as the tech growth stories are being massively underestimated by the Street with 3Q earnings a major positive catalyst for the tech sector.”
Against this backdrop, we think the shares of quality tech companies Analog Devices, Inc. (ADI), VMware Inc. (VMW), and Synopsys Inc . (SNPS) could be solid additions to one’s portfolio.