5 Battered Tech Stocks to Buy Now

A sharp selloff in tech stocks recently has created an opportunity to pick up some high-quality names at a discount.

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(Image credit: Getty Images)

The market has been quite volatile over the past month or so, with tech stocks bearing the brunt of the selling.

The turbulence certainly didn't come out of nowhere. September has historically been tough for the markets, while October tends to be one of the most volatile months. And this year, in particular, there is plenty for investors to worry about, including a looming debt ceiling – the short-term bill making its way through Congress only goes to early December – an imminent Fed tapering and supply-chain issues.

And while the S&P 500 is down almost 4% from its early September peak, the technology sector is faring even worse, with the Nasdaq Composite off almost 5%. Exacerbating troubles for tech stocks is the recent rise in Treasury yields. Higher rates on bonds can weigh on the broader stock market, but often hit tech shares the hardest, considering costlier borrowing can eat into margins.

However, even with the market volatility, business growth is expected to accelerate next year, and the economic recovery is still moving along. As such, the recent selloff creates an opportunity to scoop up beaten down shares of some of the best tech stocks at more attractive prices.

To aide in our search for solid companies to buy on the dip, we turned to the Stock News POWR Ratings system to search for Buy- and Strong Buy-rated stocks that saw losses of more than 10% in the past month – suggesting the selling is overdone.

Based on that criteria, here are five of the best tech stocks to buy right now.


Data is as of Oct. 11. POWR Ratings work on an A-B-C-D-F system. Stocks are listed in order of lowest to highest overall rating, and then alphabetically.

David Cohne
Contributing Writer, Kiplinger.com

David Cohne has 20 years of experience as an investment analyst and writer. Prior to StockNews, David spent 11 years as a consultant providing outsourced investment research and content to financial services companies, hedge funds and online publications. David enjoys researching and writing about stocks and the markets. He takes a fundamental quantitative approach in evaluating stocks for readers.