The resurgence of COVID-19 cases, the Fed’s dovish monetary policy stance, and continuing digital transformation have been heightening investors’ interest in tech stocks. And considering the attractive current valuation and solid growth prospects of LG Display (NYSE:LPL), NetScout Systems (NTCT), AdvanSix (NYSE:ASIX), and ScanSource (NASDAQ:SCSC), we think these names could be no-brainer picks from the tech space. Let’s discuss.The tech industry plunged earlier this year as investors rotated away from expensive tech stocks to quality cyclical stocks to capitalize on the economic recovery. However, the resurgence of COVID-19 cases due to the rapid spread of its Delta variant, and the Fed’s dovish monetary policy stance, have been spurring renewed interest in tech stocks.
Investors’ interest in tech stocks is evidenced by the Technology Select Sector SPDR ETF’s (XLK) 9.8% returns over the past three months versus the SPDR S&P 500 Trust ETF’s (SPY) 5% gains. Furthermore, the ongoing digital transformation and increasing use of cloud computing, artificial intelligence (AI), and other advanced technologies should keep driving the technology industry’s growth. According to GoRemotely, the tech industry is expected to hit a $5 trillion market value by the end of 2021.
Given the industry’s solid growth prospects, we think it could be wise to bet now on fundamentally strong tech stocks LG Display Co ., Ltd. (LPL), NetScout Systems, Inc. (NTCT), AdvanSix Inc . (ASIX), and ScanSource, Inc. (SCSC). These stocks are rated Strong Buy or Buy in our POWR Ratings system. In addition, they possess a solid combination of growth and value attributes.