3 Tech Stocks to Buy This Week Without Hesitation Despite the macroeconomic headwinds, the tech industry is well-positioned for long-term growth, thanks to growing dependency on tech products and services, the introduction of advanced technologies, and increasing corporate and...

Despite the macroeconomic headwinds, the tech industry is well-positioned for long-term growth, thanks to growing dependency on tech products and services, the introduction of advanced technologies, and increasing corporate and federal spending worldwide. Hence, it could be wise to add quality tech stocks Pure Storage (PSTG), Dropbox (DBX), and TTM Technologies (TTMI) to your portfolio this week without any hesitation. Read on….

Despite the rising interest rates, the ongoing Russia-Ukraine war, and the recessionary signals, most technology executives remain upbeat about the future of their companies. According to an Ernst & Young poll of technology leaders in October, 74% of leaders see opportunities for their organizations despite a recessionary environment.

The industry's growth is expected to be fueled by cloud computing, cybersecurity, edge computing, quantum, AR/VR (augmented reality/virtual reality), blockchain, and other advanced technologies. The global information technology market is expected to grow at a CAGR of 8.8% to $13.09 trillion in 2026.

The tech industry's profits will increase approximately 2% this year, rebounding to 6% in 2023, according to CFRA Research estimates. Investors' interest in tech stocks is evident from the Vanguard Information Technology ETF's (VGT) 10% gains over the past month.

Given the industry's long-term growth prospects, adding fundamentally strong tech stocks Pure Storage, Inc. (PSTG), Dropbox, Inc. (DBX), and TTM Technologies, Inc. (TTMI) to your portfolio this week could be wise.

Pure Storage, Inc. (PSTG)

PSTG specializes in providing data storage technologies, goods, and services. Its products and subscription services serve a wide variety of structured and unstructured data at scale and across all data workloads in hybrid and public cloud environments. It also consists of backup and recovery, analytics, and disaster recovery (DR).

On October 26, PSTG announced a new fully managed service for Portworx® Enterprise to provide a Kubernetes-ready data plane to every developer that works on containerized applications. The company will gain strategically by giving access to the cloud experience to every developer who wants to work with Kubernetes apps in production on any storage infrastructure.

In June, PSTG announced AIRI®/S, the next iteration of its total AI-ready infrastructure, developed by PSTG and NVIDIA Corporation (NVDA). AIRI/S gives businesses a simple, on-demand infrastructure that speeds up AI initiatives of any size. This will allow businesses to scale their AI and data science expenditures without complication.

For the fiscal 2023 third quarter ended November 6, 2022, PSTG's product revenue grew 15% from the previous year to $431.28 million, while its total revenue increased 20.1% year-over-year to $676.05 million. Its gross profit increased 24.4% from the year-ago value to $466.34 million.

Furthermore, as of September 30, 2022, the company's cash and cash equivalents were $795.93 million, up 70.7% year-over-over and its total assets stood at $3.25 billion, a 3.7% rise from the prior year.

The consensus EPS estimate of $1.27 for the current fiscal year (ending January 2023) indicates a 91.5% year-over-year improvement. Likewise, the consensus revenue estimate of $2.75 billion for the same year reflects a rise of 26.3% from the prior year.

Furthermore, the company's EPS and revenue for the next year are expected to increase 2.3% and 13.7% year-over-year to $1.30 and $3.13 billion, respectively. Shares of PSTG have gained 5.5% over the past six months to close the last trading session at $29.28.

PSTG's strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

The stock has an A grade for Quality and Growth. It has topped within the Technology - Storage industry.

Beyond what we stated above, we also have PSTG's ratings for Value, Stability, Sentiment, and Momentum. Get all PSTG ratings here.

Dropbox, Inc. (DBX)

DBX is a provider of a collaboration platform. Its platform lets users create, access, organize, share, collaborate, and secure content. DBX supports customers in the professional services, technology, media, education, industrial, consumer and retail, and financial services industries.

On November 29, DBX announced its deal to acquire several key assets from Boxcryptor, a provider of end-to-end "zero-knowledge" encryption for cloud storage services. Boxcryptor's encryption capabilities, combined with DBX's user-friendly product and robust security features, will enable DBX to fulfill the needs of its clients.

The strategic decision by DBX to integrate Boxcryptor's features natively into Dropbox for its business users on their subscription plans may be advantageous as it will add an extra layer of security for its users by encrypting files locally on their devices before they sync their material to Dropbox.

For the fiscal 2022 third quarter ended September 30, 2022, DBX's revenue increased 7.4% year-over-year to $591 million, while its gross profit grew 9.8% from the prior year to $481.30 million. Its income from operations increased 15.5% year-over-year to $89.30 million.

In addition, the company's net income was $83.20 million, up 10% year-over-year, while its net income per share came in at $0.23, a 21% increase from the year-ago value.

Analysts expect revenue to increase 7.5% year-over-year to $2.32 billion for the fiscal year ending December 2022. The company's EPS for the current year is expected to grow 1.9% from the previous year to $1.57. Also, analysts expect its revenue and EPS for the fiscal year 2023 to grow 5.9% and 11.2% year-over-year to $2.46 billion and $1.74, respectively.

Moreover, DBX has surpassed its consensus EPS in three of the trailing four quarters.

The stock has gained 4.9% over the past month to close the last trading session at $22.47.

DBX's POWR Ratings reflect its strong outlook. The stock has an overall rating of B, which equates to a Buy in our proprietary rating system.

The stock has an A grade for Quality and a B for Value. Within the Technology - Services industry, it is ranked #10 of 77 stocks.

To see additional POWR Ratings for Growth, Stability, Sentiment, and Momentum for DBX, click here.

TTM Technologies, Inc. (TTMI)

TTMI is a producer of printed circuit boards (PCBs). It focuses on producing high-tech PCBs and backplane assemblies and also designs and produces high-frequency RF and microwave parts.

On June 27, TTMI announced its acquisition of Telephonics Corporation from Griffon Corporation (GFF) for about $330 million in cash. Telephonics is a prominent provider of advanced intelligence, surveillance, and communications products used in various land, sea, and air applications.

The acquisition will improve TTMI's position in the radar systems market while expanding its Aerospace and Defense product portfolio vertically into higher-level engineered system solutions and horizontally into the surveillance and communications industries.

For the fiscal 2022 third quarter ended October 3, 2022, TTMI's net sales increased 20.5% year-over-year to $671.08 million, while its gross profit increased 38% from the year-ago value to $128.57 million. Its operating income grew to $49.78 million, a 54.4% rise from the prior year's quarter.

In addition, the company's net income increased 107.7% year-over-year to $43.53 million, while EPS stood at $0.42, rising 121.1% year-over-year.

Analysts expect the company's revenue to increase 12.8% year-over-year to $2.54 billion for the fiscal year ending December 2022. The company's EPS for the current year is expected to grow 33.1% year-over-year to $1.70. TTMI has surpassed the consensus EPS estimates in all four trailing quarters, which is impressive.

The stock has gained 12.7% over the past month to close the last trading session at $15.43.

TTMI's POWR Ratings reflect its promising outlook. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system.

The stock has an A grade for Growth and a B for Momentum, Sentiment, and Quality. Within the Technology - Electronics industry, it is ranked #3 of 42 stocks.

Click here to see additional ratings of TTMI for Value and Stability.

PSTG shares fell $0.10 (-0.34%) in premarket trading Tuesday. Year-to-date, PSTG has declined -10.35%, versus a -14.99% rise in the benchmark S&P 500 index during the same period.

About the Author: Mangeet Kaur Bouns

Mangeet's keen interest in the stock market led her to become an investment researcher and financial journalist. Using her fundamental approach to analyzing stocks, Mangeet's looks to help retail investors understand the underlying factors before making investment decisions.

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