Top Technology Services Stocks to Consider Amid Market Volatility
Currently, the Zacks Technology Services Industry ranks in the top 26% of over 240 Zacks industries, with several stocks featuring on the prestigious Zacks Rank #1 (Strong Buy) list.
As technological innovations continue to shape the business services landscape, here are two highly ranked stocks to consider.
Climb Global Solutions – CLMB
Climb Global Solutions CLMB specializes in emerging and disruptive technologies, providing information technology (IT) distribution and solutions. This company supports up-and-coming businesses, particularly in security & data management, connectivity, cloud services, computer storage, and software markets.
Its services are directed toward value-added resellers, one of which is CDW Corporation CDW, a major provider of integrated IT solutions. Climb has demonstrated strong performance in the stock market and currently trades at a forward earnings multiple of 21.2X, reflecting reasonable pricing relative to its growth potential.
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Dave Inc – DAVE
Dave Inc’s growing fintech platform, identified by its flagship 0% interest loan service known as ExtraCash, has attracted millions of American users. This service allows customers to access small cash advances without incurring interest. Additionally, members are offered tools to improve their financial habits, such as goal-oriented savings accounts and customizable round-up savings on debit card transactions.
Forecasts indicate robust double-digit growth for Dave in both revenue and earnings for fiscal 2025 and FY26, with earnings per share (EPS) estimates increasing significantly over the past 60 days.
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After going public in 2022 via a SPAC (Special Purpose Acquisition Company) with VPC Impact Acquisition Holdings, DAVE’s stock has surged more than 1,000% over the past two years. Currently, DAVE trades at a forward earnings multiple of just 12.5X and is approaching an optimal sales ratio of less than 2X forward sales.
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Bottom Line
Climb Global Solutions and Dave Inc represent two compelling investment opportunities in the technology services sector, particularly as potential “buy the dip” candidates during recent market uncertainty.
7 Best Stocks for the Next 30 Days
Experts have recently identified seven elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. These stocks are recommended as “Most Likely for Early Price Pops.”
Since 1988, this curated list has outperformed the market by more than double, with an average annual return of +24.3%. It’s advisable to pay immediate attention to these select seven stocks.
Dave Inc. (DAVE): Free Stock Analysis Report
Climb Global Solutions, Inc. (CLMB): Free Stock Analysis Report
CDW Corporation (CDW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
