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| By Gavin Magor |
The market bounced yesterday ahead of President Trump’s tariff remarks … led by tech. But make no mistake. It is still down on the year.
However, believe it or not, some high-quality tech stocks are bucking this trend. In fact, they are hiding in plain sight.
The way big tech woes have dominated headlines this year, it is hard to believe any high-momentum tech stocks, worth buying, actually exist.
But it is true. The Weiss Ratings system identifies quality tech stocks with high momentum on a daily basis.
And I’m about to show you how to find them.
Tech Sector Blues
It’s been a rough ride for most of Wall Street’s biggest tech names.
Just look at the numbers: The S&P 500 technology sector, down double-digits year to date, is coming off its worst quarter since 2022.
The market has been rattled by tariff fears and doomsday predictions, offsetting positive sentiment over soaring earnings growth.
Tech stocks are natural targets for correction, especially those with stretched valuations. As a result, tech powerhouses that were once leading the post-pandemic bull run are now dragging down portfolios.
Recently, tech stock valuations have gradually come back down to earth and closed the gap with the rest of the market, as illustrated in the below chart that tracks price to expected operating earnings.
This trend is good news for new buyers … and bad news for investors who already own these stocks.
But not all tech stocks have been getting pummeled.
The Weiss Ratings System generated “Buy” recommendations for a handful of high-momentum tech stocks with solid all-around investment fundamentals.
High-Momentum Tech Winners
Here’s how you can find them …
First, go to the Weiss stock screener and click the filter icon. Then select the following fields and criteria:
- Investment Rating: A+ to B-
- Exchange: Major U.S. Exchanges (NYSE, Nasdaq)
- Sector: Information Technology
- Total Return YTD: > 5%
And below we see seven stocks in the IT sector currently defying market physics by posting gains year to date.
Besides high-momentum, I notice the below seven stocks share a few key attributes: A tech/industrial crossover, solid profitability and low volatility.
This suggests the market is favoring stocks at low risk of turning into “vaporware” or filing for bankruptcy.
OSI Systems (OSIS), the leader of the pack, builds airport scanners and advanced inspection technology.
Teledyne Technologies (TDY) makes products like industrial lasers and X-ray sensors.
Over 30 companies owned by Roper Technologies (ROP) offer commercial and industrial high-tech products and software.
Chip equipment maker KLA (KLAC), telematics provider Ituran Location and Control (ITRN) and wireless tech company InterDigital (IDCC) all showcase robust profit margins, cash flows and low volatility.
Last but not least is IBM (IBM),which is performing better than any large cap tech stock year to date.
So, don’t despair about lack of pop in the tech sector.
High-momentum tech stocks do exist, and the Weiss Ratings stock screener can help you find more.
Cheers!
Gavin
P.S. The Weiss stock screener is also the first step my colleague, Nilus Mattive, takes when using his 60-Second Income strategy.
As he puts it, “It all starts with the Weiss Ratings system. And that’s how we get our 97.4% accuracy rate.”
