How to Find Strong Buy Computer and Technology Stocks Using the Zacks Rank
Investors looking to build a successful portfolio often face the challenge of selecting stocks that have strong growth potential amid a constantly shifting market landscape. Whether you prioritize growth, value, income, or momentum investing, having a reliable method to identify promising opportunities is key. One such tool gaining traction in the investing community is the Zacks Rank, a unique stock-rating model that highlights companies favored by institutional investors based on earnings estimate revision trends.
Understanding the Zacks Rank System
The Zacks Rank is a quantitative model developed by Zacks Investment Research that ranks stocks from #1 (Strong Buy) to #5 (Strong Sell). It primarily focuses on recent changes in analysts’ earnings estimates, which tend to have predictive power when it comes to future stock performance. Stocks with a #1 ranking often see positive earnings revisions and strong market momentum, making them potentially attractive candidates for investors seeking high returns.
Spotlight on Celestica (CLS): A Strong Buy Technology Stock
A recent example of a technology company that earned the coveted Zacks #1 (Strong Buy) ranking is Celestica Inc. (CLS), a leading electronics manufacturing services firm headquartered in Ontario, Canada. Celestica provides a comprehensive array of services including design and development, engineering, new product introduction, component sourcing, manufacturing and assembly, product testing, logistics, and IT asset management, serving clients across multiple industries such as cloud services and original equipment manufacturing.
On August 2, 2025, Celestica was upgraded to the Zacks Rank #1 list after three analysts raised their earnings forecasts for fiscal year 2025. The Zacks Consensus Estimate for the company’s earnings per share (EPS) increased by $0.50 to $5.55. Celestica also has a solid track record with an average earnings surprise of 7.7%, showcasing its ability to outperform market expectations.
Impressive Growth Metrics and Market Performance
Celestica’s earnings are projected to grow by an impressive 43% in the current fiscal year, while revenues are expected to rise by 20.6%. The stock has demonstrated robust market momentum, gaining 22.3% over the past four weeks—a notable surge compared to the modest 0.6% increase of the S&P 500 index during the same period.
Why Consider Zacks Rank #1 Stocks for Your Portfolio?
The combination of strong earnings estimate revisions, solid growth projections, and positive price momentum often makes Zacks #1-ranked stocks like Celestica appealing choices for investors aiming to enhance their portfolios. These companies may provide the returns needed to meet a variety of financial goals, whether it’s saving for retirement, funding college tuition, or building wealth over the short and long term.
Accessing More Opportunities with Zacks
Investors interested in finding other promising stocks can explore Zacks Investment Research’s recommendations, which regularly highlight the best-rated stocks for upcoming periods. For instance, Zacks offers a free report titled “7 Best Stocks for the Next 30 Days,” which can be a valuable resource for identifying strong buys beyond the technology sector.
Conclusion
Utilizing tools like the Zacks Rank can simplify the process of identifying high-potential stocks within the complex computer and technology industry. By focusing on earnings estimate trends and market momentum, investors can make more informed decisions and potentially capitalize on the growth of innovative companies such as Celestica. As always, thorough research and consideration of your individual investment objectives remain essential when incorporating any stock into your portfolio.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult a financial advisor before making investment decisions.
