3 Blue Chip Tech Stocks To Buy Now

The sudden return of volatility to global stock markets has created buying opportunities in large-cap tech stocks as the sector’s investors look to rebound from recent selloffs. The world’s tech leaders have dominated Wall Street over the past two years, and now, investors might have a fresh chance to buy a few previously red-hot stocks at a discount.

Of course, this recent volatility has made some investors hesitant, with bearish traders quick to draw similarities between this latest tech rally and the infamous dot-com bubble of the late 90s and early 2000s.

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 21.3, 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 respective 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. Amazon.com, Inc. (AMZN - Free Report)

Amazon does not need much of an introduction, but investors should always remember that the company has its hands in much more than just the e-commerce business that brought it fame. The Seattle-based firm is now a legitimate brick-and-mortar retailer, cloud computing provider, entertainment media publisher, and more. AMZN is also currently sporting a Zacks Rank #2 (Buy).

Amazon’s track record speaks for itself, as shares have gained nearly 70% in the trailing one-year period. The stock has shrugged off market-wide volatility and continues to test new highs. Earnings are expected to improve by a staggering 180% this year, with sales surging nearly 34%. AMZN is a staple stock that should appease investors looking for near-term strength and long-term, buy-and-hold gains.

2. Nvidia Corporation (NVDA - Free Report)

Thanks to its strategic investments in data centers and artificial intelligence, Nvidia has emerged as one of Wall Street’s most popular stocks. Of course, the company’s industry-leading GPUs remain its backbone and are the number one choice for PC gamers worldwide. Nvidia shares have gained over 57% within the past year, and since the stock is still sporting a Zacks Rank #1 (Strong Buy), it is showing few signs of stopping.

Nvidia is still in an aggressive growth cycle, with current estimates calling for the firm to see EPS and revenue growth of 61% and 36%, respectively, this fiscal year. And of course, Nvidia has made a habit out of crushing expectations. Management is also improving its finances, generating cash flow growth of nearly 67%. Valuations are stretched, but investors should be willing to pay a premium for a company with Nvidia’s proven success and continued potential.

3. Facebook, Inc. (FB - Free Report)

Facebook found itself at a bit of an impasse earlier this year as its handling of user data garnered significant public and regulatory scrutiny. But the company never felt much in terms of actual regulatory action, and so far, its revenue growth has significantly outpaced new costs associated with upping security and vetting content.

FB is holding a Zacks Rank #2 (Buy) and looks like one of the internet industry’s top picks once again. Earnings and revenue are expected to improve by 24% and 41%, respectively, in 2018. Meanwhile, the stock has a PEG of just 1.1, so investors are getting a good price for that earnings growth. Plus, at 25.6x forward earnings, FB is the cheapest it has been in quite some time.

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any specific ...

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