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Sept. 28, 2022, 3:11 p.m. EDT

Top Tech Stocks To Buy Now? 3 To Watch Ahead Of October 2022

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Sep 28, 2022 (StockMarket.com via COMTEX) -- Technology has always been an important part of our lives, but it's especially crucial now as we face unprecedented challenges. Technology helps us stay connected, entertained, and informed, and it also plays a vital role in business and commerce. That's why tech stocks are so popular with investors. This is evident with top tech firms today like Meta Platforms Inc. ( NASDAQ: META ) and Alphabet Inc. ( NASDAQ: GOOGL ). Specifically, both companies' technologies strive to help, connect, and enhance people and businesses worldwide.

Technology stocks are impacted by interest rates because they're generally more sensitive to changes in the economy. They are often impacted by interest rates because most of them are considered growth stocks . When interest rates rise, it slows down the economy and generally hurts the stock market. But when rates fall, it stimulates economic activity and generally helps the stock market . Technology stocks can be volatile, but they offer the potential for high returns. That's why many investors are willing to take the risk. If this has you interested in looking more into the tech sector, here are three tech stocks that are outperforming the broader markets so far in 2022.

Tech Stocks To Watch In The Stock Market Today

1. Jack Henry & Associates (JKHY Stock)

Leading this list off today, Jack Henry & Associates (JKHY) is a financial technology company. For starters, the company is a provider of technology solutions and payment processing services. Primarily, Jack Henry focuses on the financial services industry. For a sense of scale, Jack Henry & Associates currently serves approximately 8,500 clients throughout the United States.

Last month, Jack Henry & Associates announced its Board of Directors has declared a regular quarterly cash dividend of $0.49 per share on common stock. As a result, that comes out to an annual dividend yield of 1.06% for JKHY shareholders.

In August, JKHY reported a beat for its financial results for the fourth quarter and full fiscal year ending June 30, 2022. In the report, the company reported earnings of $1.10 per share, along with revenue of $482.7 million for Q4 2022. Meanwhile, analysts' earnings estimates for the quarter were $1.00 per share and revenue estimates of $480.1 million. In addition, Jack Henry provided an updated fiscal 2023 earnings outlook. Specifically, the company stated it now projects fiscal 2023 earnings per share of $5.05 to $5.09, with revenue of $2.080 billion to $2.087 billion.

What's more, David Foss, Chairman, and CEO at JKHY said this about the results, "We are very pleased to report another quarter of record revenue, operating income, and total sales bookings. Among many other successes, our sales teams secured 17 new core clients and sold 48 new digital banking systems in the quarter. Additionally, we have recently announced the addition of a new CFO to our team, a refreshed brand for our company, and the pending acquisition of Payrailz. As we begin the new fiscal year, our sales pipeline remains strong, and we see significant opportunities to continue growing our company through the successful execution of our technology modernization and One Jack Henry operational strategies."

Separate from that, shares of Jack Henry & Associates stock have outperformed the broader markets so far in 2022. Specifically, JKHY stock is up 7% year-to-date. On Wednesday afternoon JKHY stock is trading modestly higher at $184.48 a share. Given the company's recent quarterly performance, do you think JKHY is a top tech stock to buy now?

[Read More] 3 Consumer Discretionary Stocks For Your Watchlist Today

2. Enphase Energy (ENPH Stock)

Following that, we're going to take a look at the multinational energy technology company Enphase Energy (ENPH). In short, The company delivers smart, easy-to-use solutions that manage solar generation, storage, and communication from one platform. Additionally, the company's microinverter technology mainly serves the rooftop solar market and produces a fully integrated solar-plus-storage solution.

Back in July, Enphase Energy announced a beat for its 2nd quarter fiscal results. In the report, the company reported Q2 2022 earnings of $1.07 per share, with revenue of $530.2 million. This is compared with analysts' consensus estimates for the second quarter, which were earnings of $0.82 per share and revenue of $504.0 million. Furthermore, Enphase reported a revised outlook for the 3rd quarter of 2022. The company said in the release that it now projects Q3 2022 revenue between $590 million to $630 million.

Additionally, the company's President and CEO, Badri Kothandaraman commented in its letter to shareholders, "Our microinverter shipments were up 18%, compared to the first quarter of 2022. Our IQ Battery shipments were up 10%, compared to the first quarter of 2022. Our quarterly revenue in the second quarter of 2022 was driven by strong demand for Enphase Energy Systems, powered by IQ(R) Microinverters and IQ Batteries. IQ8(TM) Microinverters constituted 37% of all our microinverter shipments during the second quarter."

Year-to-date Enphase Energy's stock has advanced over 56% outperforming the broader markets so far this year. Meanwhile, during Wednesday's afternoon session, shares of ENPH stock are trading up over 1% at $288.43 per share. All in all, do you think ENPH stock deserves a spot on your list of tech stocks to watch in the stock market today?

[Read More] 3 Trucking Company Stocks To Watch In September 2022

3. ON Semiconductor (ON Stock)

Lastly, let's check out ON Semiconductor Corporation (ON) or Onsemi. For the uninitiated, ON Semiconductor is a supplier of power semiconductors and sensors. Currently, the company focuses mainly on the automotive and industrial markets. For a sense of scale, Onsemi is one of the largest power chipmakers in the world. As well as one of the largest suppliers of image sensors to the automotive market.

At the beginning of last month, ON Semiconductor Corporation reported stronger-than-expected second-quarter 2022 financial results. In the second quarter of 2022, ON Semiconductor notched in earnings of $1.34 per share along with revenue of $2.1 billion. Meanwhile, Wall Street's consensus estimates for the 2nd Quarter of 2022 were earnings of $1.26 per share and revenue of $2.0 billion. This was the first time in the history of the company that they reported quarterly revenue exceeding $2 billion.

Hassane El-Khoury, president and CEO of the company said this about Q2 2022's results, "Our ability to execute on our business transformation continues to deliver record revenue performance with 25% year-over-year growth and non-GAAP gross margin expansion of 1,130 basis points to 49.7% in the second quarter. These financial results validate our momentum in the market and the differentiation of our intelligent power and sensing solutions."

In 2022 so far shares of ON stock are down 7.74% as of Wednesday's afternoon trading session at $64.73 a share. Though, ON stock is still outperforming all major stock market indexes year-to-date. Considering this, do you think ON Semiconductor is worth watching right now?

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COMTEX_415497423/2688/2022-09-28T15:11:15

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