Top 3 Tech Stocks Poised to Surge Amid Growing Likelihood of Soft Landing Scenario
August hasn't been very kind to U.S. stock indexes so far as they continue to correct. Looking ahead, one of the major factors likely to steer the market in the coming months is the U.S. GDP trajectory.
According to a survey conducted by Bank of America, around 65% of respondents predict a soft landing. Interestingly, this aligns with the signals coming from Treasury Secretary Janet Yellen and the Federal Reserve.
Source: BofA
The main argument to this viewpoint revolves around the consistent inversion of 10-2 yield curve, which historically has been a reliable predictor of a recession.
However, if we assume the more optimistic scenario, which is a soft landing, three tech industry companies deserve our attention. They're currently undergoing a corrective phase, yet they possess the potential to resume their upward trajectory if the soft landing scenario unfolds.
Let's try and analyze them one by one.
Belden (NYSE:BDC), a network component manufacturer, stands as one of the prominent suppliers of high-speed network cables in the United States.
With a reputable brand presence and robust financial stability, the company adeptly meets its current financial commitments. Notably, Belden has consistently surpassed market expectations in its quarterly results and forecasts growth in earnings per share.
Source: InvestingPro
Source: InvestingPro
The stock's correction phase might persist until it reaches the $80 range, which coincides with a significant demand zone. If this level is breached, it could trigger a decline toward the $73 mark.
In the bullish scenario, a breakout toward new highs above $100 would be in the cards.
STMicroelectronics NV (NYSE:STM) stands as Europe's largest chipmaker, poised to reap the benefits of
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