The September jobs report exceeded expectations with the addition of 336,000 jobs last month, nearly double the amount anticipated on Wall Street.
Add that ‘goldilocks’ figure to minimal wage inflation, and the scene is set for a soft landing for the economy, says Wedbush’s Daniel Ives, a 5-star analyst rated in the top 2% of the Street’s stock pros. This, in turn, is great news for the tech sector. In fact, with earnings season about to kick off, Ives thinks Wall Street is poised to be caught off-guard by the strength of reporting, laying the groundwork for a big end-of-year surge.
“Our view is that 3Q earnings over the coming weeks will be an eye-opener for the Street, as the transformational AI growth and stabilizing IT spending environment will create a massive tech rally heading into year-end, during which we expect tech stocks to be up another 12%-15% in 4Q,” Ives opined.
While Ives acknowledges that bears may try to temper the bulls’ enthusiasm, his advice remains clear: Ignore the noise and direct your attention towards the potential of this generational AI growth, with $1 trillion in tech spending anticipated on the horizon over the next decade.
With the prospect of all this about to take place, Ives believes certain names are well-positioned to gain, and we decided to take a closer look at some of his picks. Do these equities receive support from the rest of the Street? According to the TipRanks database, they certainly do; both are rated as ‘Strong Buys’ by the analyst consensus. Let’s see what makes them so.
Progress Software (PRGS)
We’ll start with a leading American infrastructure software company, the aptly titled Progress Software. This firm specializes in providing a wide range of software tools and solutions to help businesses enhance their operational efficiency and accelerate digital transformation. Since being founded in 1981, Progress has established itself as a trusted partner for enterprises seeking to harness the power of data and applications in an evolving digital landscape.
The company’s product…