3 Tech Stocks That Are Screaming Buys in April
After outperforming for the last three years, technology stocks have had a big pullback in 2022 due to inescapable macroeconomic headwinds. In response to surging inflation, the Federal Reserve has signaled an aggressive plan for hiking benchmark interest rates this year, and will soon begin shrinking its balance sheet via bond sales. Reflecting this, the yield on the 10-year U.S. Treasury has risen more than a full percentage point year to date, from 1.62% to 2.73% as of this writing.
That rise in long-term interest rates has generally clobbered high-multiple growth stocks. But beyond that, some fear the Fed could move too energetically in its efforts to stem inflation and induce a recession. Worries on that score have led the market to bid down the values of lower-multiple, cash-generating tech sector stalwarts like the FAANG stocks and semiconductor players, too.
But with the Nasdaq down some 17% from the high it touched in November, there are bound to be some bargains available now. These three premier tech names enjoy competitive advantages and long growth runways, and also sport cheap valuations, making them screaming buys today.
Source Fool.com
