Take Advantage of the Pullback and Buy These 3 Tech Stocks The market has seen increased volatility over the past few weeks due to a number of concerns. This has led to steep declines for many tech stocks, pro...

The market has seen increased volatility over the past few weeks due to a number of concerns. This has led to steep declines for many tech stocks, providing investors an opportunity to buy on the dip. Qorvo, Inc. (QRVO), PTC Inc. (PTC), and Avnet, Inc. (AVT) are three tech stocks with bright futures that can be bought at attractive prices due to the pullback.

From September 2nd through September 21st, the S&P 500 fell 3.6%. While that may not seem like much, remember that the S&P 500 is a broad-based index. Many stocks saw losses that were even higher. Some of the concerns hanging over the market include a potential debt crisis in China as Evergrande Group could potentially default.

Other concerns are the Delta variant's effect on the economic recovery. In a survey released today, we learned that "Business economists are marking down their forecasts for US growth this year." We also have to contend with worries over a failure to raise the debt ceiling. While there is still bearish sentiment, this provides an opportunity to buy stocks on a pullback.

While cases are still high, it looks like the Delta variant may be peaking. So, while economic predictions are down for 2021, business growth should accelerate next year. That's why investors should consider investing in technology stocks that saw losses recently. I screened for stocks rated a Buy or higher in our POWR Ratings system that saw recent losses. Qorvo, Inc. (QRVO), PTC Inc. (PTC), and Avnet, Inc. (AVT) are three intriguing choices from my screen.

Qorvo, Inc. (QRVO)

QRVO represents the combined entity of RF Micro Devices and TriQuint Semiconductor, which merged in January 2015. It is a leading provider of core technologies and radio frequency (RF) solutions for mobile, infrastructure, and aerospace/defense applications.

The company specializes in power amplifiers, radio frequency filters, and front-end modules used in many of the world's smartphones. It also has a suite of products sold into a variety of non-smartphone end markets. This includes cable TV and networking equipment, wireless base stations, and infrastructure and military applications.

The company is seeing high demand for its highly integrated 5G solutions. The accelerated deployment of 5G and the roll-out of Wi-Fi 6 and 6E technologies favor the company's prospects. So far, QRVI has participated in many 5G field trials and demonstrations. An expanding portfolio enabling 5G deployment bodes well for long-term growth.

In addition, its ultra wideband technology aids growth as it is considered accurate and reliable with traditional technologies such as Wi-Fi, BLE, and NFC. QRVO has an overall grade of A, which translates into a Strong Buy rating in our POWR Ratings system. The company has a Growth Grade of B, which makes sense as earnings per share were up 142.4% over the past year.

Plus, analysts forecast earnings to rise 33.7% year over year in the current quarter. QRVO also has a Quality Grade of A. The company has a current ratio of 3.4, which indicates it has more than enough liquidity. It also has a low debt-to-equity ratio of 0.4. We also provide Value, Momentum, Stability, and Sentiment grades for QRVO, which you can find here.

QRVO is ranked #11 in the B-rated Semiconductor & Wireless Chip industry. For more top stocks in this highly rated industry, click here. Since August 3rd, its stock is down 10%, making this an excellent opportunity to buy on the dip.

Click here to check out our Semiconductor Industry Report for 2021

PTC Inc. (PTC)

PTC offers high-end computer-assisted design (Creo) and product lifecycle management (Windchill) software, as well as Internet of Things and AR industrial solutions. Creo is the company's flagship 3D CAD product. It offers design engineers with assembly design, design flexibility, and virtual prototyping design capabilities.

Windchill is the company's primary PLM product. The software offers a unified repository for comprehensive product information. Windchill also offers AR capabilities to help customers develop a digital product definition and publish the illustration in AR. A third product, ThingWorx, allows customers to create and deploy IoT applications.

The growing clout of PTC's technology platforms should help drive revenue growth. The global 3D CAD software market is expected to reach $15.4 billion by 2028, representing an annual return of 6.4% between 2021 and 2028. Plus, increased adoption of computer-based design in the automotive sector bodes well for its Creo offering.

In addition, increased spending by large companies on emerging technologies such as the Internet of Things (IoT) and AR/VR present a great opportunity for PTC. The company has an overall grade of B and a Buy rating in our POWR Ratings system. PTC has a Sentiment Grade of B, which means that it is well-liked by the analyst crowd. For instance, eleven out of fourteen analysts rate the stock a Buy or Strong Buy.

The company also has a Quality Grade of B as its cash balance of $366 million as of the end of the most recent quarter compares favorably to no short-term debt. Its gross margin of 79.3% is also much higher than the industry average. For the rest of PTC's grades (Growth, Value, Momentum, and Stability) click here.

PTC is ranked #29 in the Software – Application industry. For more top stocks in this industry, click here. Like QRVO, PTC's stock has also seen a recent drop, down 16.7% since July 23rd, making it a great tech stock to pick up.

Avnet, Inc. (AVT)

AVT is a leading value-added distributor of electronic components. The company's customer base is composed of original equipment manufacturers (OEMs), electronic manufacturing services (EMS), providers, and original design manufacturers (ODMs). The firm operates in two groups: electronic components and Farnell. Avnet acquired the latter in October 2016.

The company is seeing strong demand for its products across Asia, Europe, Middle East, and Africa. Sales are also improving in North and South America. AVT's focus on increasing its IoT capabilities is helping it expand into newer markets and gain customers. Its acquisition of Dragon Innovation, a manufacturing consultant and software vendor that enjoys a strong presence in the IoT space, adds to these capabilities.

The acquisition will enable AVT to provide powerful but simple-to-use tools to engineers, allowing them to manufacture and roll out hardware products faster and more cost-effectively. AVT has also made several partnerships, including with AT&T (T). In fact, the firm's expanding partner base is expected to boost sales growth.

Plus, its cost-cutting efforts are aiding profitability. AVT has an overall grade of B, translating into a Buy rating in our POWR Ratings system. The company has a Growth Grade of A, which isn't surprising as EBITDA rose 91.1% over the past year. Plus, earnings are expected to grow 200% year over year in the current quarter. To access all of AVT's grades (Momentum, Stability, Sentiment, and Quality), click here.

AVT is ranked #15 in the B-rated Technology – Electronics industry. For more top-ranked stocks in this industry, click here. The stock is down 11% since August 11th and is already starting to rebound, which is a good sign.

Discover Today's Best Value Stocks

This article was written by David Cohne, Chief Value Strategist for StockNews.com. David has helped investors find the most profitable stocks for over 20 years.

If you would like to see more of his best value stock ideas, then click the link below.

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QRVO shares fell $4.72 (-2.69%) in premarket trading Tuesday. Year-to-date, QRVO has gained 2.82%, versus a 18.57% rise in the benchmark S&P 500 index during the same period.

About the Author: David Cohne

David Cohne has 20 years of experience as an investment analyst and writer. He is the Chief Value Strategist for StockNews.com and the editor of POWR Value newsletter. Prior to StockNews, David spent eleven years as a consultant providing outsourced investment research and content to financial services companies, hedge funds, and online publications. David enjoys researching and writing about stocks and the markets. He takes a fundamental quantitative approach in evaluating stocks for readers.

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