The tech industry has experienced remarkable growth over the last several years, especially this last year. Due to its rapid innovation, it is one of the most popular industries, attracting retail and institutional investors alike.
The benchmark ETF for tracking overall information technology is The Technology Select Sector SPDR Fund (NYSEARCA:XLK), which has increased by 35% within this past year, while the S&P 500 has only returned 25%. It helps to demonstrate the overall interest investors have in the technology industry.
Here are a few options for strong buy tech stocks that offer investors continued upside potential due to growing profitability and robust customer bases, even after experiencing very rapid growth over this past year.
Celestica (CLS)
Celestica (NYSE:CLS) is an electronics manufacturing company that provides supply chain services and cloud connectivity solutions for industries such as industrial, healthcare, aerospace and defense, and communications.
Over the past year, its share price has increased by more than fourfold, and it is still considered a company trading at a discounted value. It has seen a surge in investor interest due to its strong potential regarding earnings and its impressive profitability.
On April 24, Celestica released its earnings for the first quarter of 2024, in which it stated that total revenue increased by 20% and net income rose more than fourfold compared to the year before. Adjusted free cash flow increased from $9 million to $65 million within the same time period. Due to demand growth among its customers, CLS raised its full-year 2024 revenue guidance from $8.5 billion to $9.1 billion.
Celestica has beaten analyst predictions regarding earnings for roughly the last four years, which has helped propel its share price to highs it hasn’t experienced in the previous twenty years.
It provides investors with solid potential for long-term growth. It’s still trading at a fair value and offers investors a unique opportunity to buy into an upwardly oriented-company.
ACM Research (ACMR)
ACM Research (NASDAQ:ACMR) is a semiconductor materials company that provides cleaning equipment and other wafer packaging solutions for integrated circuits.
On February 28, ACMR released its earnings for the fourth quarter of 2023, stating that total revenue increased by 57% compared to the previous year. Earnings per share for Q4 2022 was nineteen cents per share, which increased to forty-three cents per share for Q4 2023. Full-year 2024 guidance was also announced, stating that the expected range for revenue is between $650 and $725 million.
ACMR recently released preliminary results for the first quarter of 2024, in which it stated that revenue is expected to double while total shipments should increase by approximately 166% year-over-year. Full financial results for the first quarter will be announced on May 8.
Over this past year, ACMR’s share price has increased by 171%, primarily due to its impressive earnings results for the fourth quarter of 2023, which led directly to a surge of over 40% in its stock price.
ACM Research is a strong buy tech company that offers a great option for earnings growth for investors who are looking for a stock that isn’t nearly as well known within the semiconductor industry as Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD), and Intel (NASDAQ:INTC).
Q2 Holdings (QTWO)
Q2 Holdings (NYSE:QTWO) is an application software company providing cloud-based digital and commercial banking solutions. Its products including Q2mobile, Q2 CardSwap, Q2 Gr0, Q2 Biller Direct, and Q2 Innovation Studio.
Over the past year, its share price has risen by 175% due to increased investor sentiment that Q2 Holdings has strong long-term profitability capabilities due to its increased growth in its subscription model.
On May 1, Q2 Holdings announced its earnings for the first quarter of 2024, in which it stated that total revenue increased by 8% compared to the previous year, and its net loss expanded from $500,000 in Q1 2023 to nearly $14 million in Q1 2024. Reoccurring subscription revenue increased by 18% year-over-year.
It also released financial guidance for the second quarter, in which year-over-year revenue is expected to be between $169 million and $172 million, a 9% to 11% increase.
Q2 Holdings provided strong subscription revenue growth and beat analysts’ predictions for first quarter earnings results, resulting in a surge in its share price by approximately 20% since its release.
Q2 Holdings provides investors with a strong growth potential primarily due to its impressive subscription revenue. It’s a strong buy tech company that still offers a considerable upside for investors.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.