RBC Has 3 Quality Tech Stocks to Buy Following Market Sell-Off

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Any tech investor will tell you the last week was horrific, especially for more momentum-oriented tech companies. But adversity brings opportunity, especially in the stock market. A new research report from RBC cautions that volatility might not go away anytime soon, but it urges investors to take advantage of the sell-off to buy high-quality, cash-generating assets that are fundamentally well positioned for several years. Other top firms we cover are also coming out with shopping lists of top stocks to buy that have been put on sale.

Three stocks fit the bill now at RBC, and they are ideal for investors looking to stick a toe into the tech area, but wary of another leg down in the market. All three are rated Outperform at RBC and are suitable for growth portfolios with a little extra risk tolerance.

Amphenol

This industry giant is gaining business from Cisco, and others could be ready to step up to the plate with even more top tech companies. Amphenol Corp. (NYSE: APH) is one of the top picks this year at RBC, and the analysts see the company benefiting from the Cisco strength as about 4% of total sales are to Cisco. Amphenol is one of the world’s largest designers, manufacturers and marketers of electrical, electronic and fiber optic connectors, interconnect systems, antennas, sensors and sensor-based products and coaxial and high-speed specialty cable. Amphenol designs, manufactures and assembles its products at facilities in the Americas, Europe, Asia, Australia and Africa and sells its products through its own global sales force, independent representatives and a global network of electronics distributors.

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While the RBC team sees the Cisco improvement as net-neutral for the company, they note that Amphenol’s information technology (IT) and data communication revenue increased in the June quarter, but it was somewhat offset by networking and storage. They do model the IT and data communications business to grow as a result of the Cisco guidance.

Amphenol investors are paid a small 1.13% dividend. RBC has a $64 target price on the stock. The consensus price target is $60.42. Shares closed trading on Tuesday at $49.59.