Beaten-down tech stocks got a much-needed breather on November 10. The U.S. inflation rate continued to ease after peaking in June (it increased by 7.7% in October compared to a growth of 9.1% in June). This pushed tech stocks higher. This was also the smallest 12-month increase since January 2022.
While shares of Microsoft (NASDAQ:MSFT) and Apple (NASDAQ:AAPL) gained in the high single digits, Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN), and Shopify (NYSE:SHOP)(TSE:SHOP) registered double-digit growth. Beyond big tech, almost all the stocks in the sector closed higher on Thursday.
Should You Buy Tech Stocks Now?
While the easing of inflation sets the groundwork for slowing the pace of rate hikes, an uncertain economic environment could continue to play spoilsport. Thus, investors should take caution and invest in stocks with a higher potential to recover swiftly as the economy improves.
Using TipRanks’ Stock Comparison tool, here is a summary of how these tech stocks stack up on TipRanks’ valuable datasets.
TipRanks’ data reveals that only Apple and Microsoft stocks have an Outperform Smart Score of eight or above. This implies that these stocks have a higher chance of beating their tech peers. Meanwhile, Meta Platforms, Amazon, and Nvidia have a Neutral outlook.
As for Shopify, the stock has an Underperform Smart Score of two out of 10.
For APPL and MSFT, the average analysts’ price target represents an upside potential of 22.2% and 20.8%, respectively. Further, both of these stocks have a Strong Buy consensus rating.
AMZN’s stock also has a Strong Buy consensus rating on TipRanks. However, the stock has a negative signal from hedge funds.
As for META, SHOP, and NVDA stocks, analysts are cautiously optimistic about their prospects.
