Yahoo Finance 3 Strong Tech Stocks That Defied Tuesday's Selloff
After opening higher on the back of Monday’s strong rebound, stocks tumbled into the red again on Tuesday afternoon. Tech companies led the day’s selloff, with investors continuing to ditch internet companies like Facebook FB, Twitter TWTR, and Alphabet GOOGL in the wake of data privacy concerns.
Trade tensions seemed to subside on Monday after White House adviser Peter Navarro confirmed that Trump administration officials were actively negotiating with China to avoid imposing tariffs on a number of Chinese goods, but the news was not enough to extend positive trading into Tuesday.
The tech-heavy Nasdaq dropped more than 200 points, or nearly 3%, to end the day at 7,008.81. Meanwhile, the S&P 500 shed almost 46 points, or 1.7%, to finish at 2,612.62. Traders continue to eye the S&P’s 200-day moving average as a key support line.
Nevertheless, not all tech stocks suffered significant losses on Tuesday. Looking for some tech winners in the sea of red? Check out three companies that were able to defy the selloff!
1. Smart Global Holdings, Inc. (SGH)
Smart Global Holdings is a supplier of electronic subsystems to OEMs. The stock continues to march higher in the wake of its latest earnings report, which saw the company post better-than-expected profits and revenues. SGH is now seeing analysts start to revise their existing estimates to match management’s positive outlook.
Smart Global shares finished Tuesday about 0.8% higher, with the stock touching a new all-time intraday trading high of $56.69 per share in morning trading. SGH is also currently sporting a Zacks Rank #1 (Strong Buy).
2. Red Hat, Inc. (RHT)
Open source software giant Red Hat also surged to a new all-time high after reporting its latest quarterly financial results after the closing bell on Monday. The stock ended the day about 0.9% above its previous close, although it was up more than 6% in early morning hours.
For the latest full quarter, Red Hat reported adjusted earnings of $0.91 per share, beating the Zacks Consensus Estimate of $0.80 and improving more than 49% year over year. Meanwhile, quarterly revenues reached $772.3 million, up nearly 23% from the year-ago period and above our consensus estimate of $762 million.
3. Sierra Wireless, Inc. (SWIR)
Sierra Wireless is a wireless data communications hardware designer, and its stock got a boost today after one key analyst said it should continue to benefit from growth in the Internet of Things. SWIR closed nearly 7% higher on Tuesday as the stock looks to bounce off its recent 52-week low.
The move was inspired by analyst Scott Searle of Roth Capital Partners, who upgraded SWIR to buy from neutral and slapped a $22 price target on the company. Searle mentioned that Sierra is “ideally positioned” for the evolution of IoT.
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