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2 Top-Rated Foreign Tech Stocks to Buy After Earnings

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As we start to round out this week’s earnings lineup a few foreign tech companies are starting to stand out. 

Here are two top-rated Zacks Computer and Technology sector stocks that investors may want to consider following their strong quarterly results.

Endava (DAVA - Free Report) )

London-based Endava Plc’s stock sports a Zack Rank #2 (Buy) with the company impressively surpassing its top and bottom line expectations on Tuesday.  

As an information technology services provider, it’s noteworthy that Endava’s Computers-IT Services Industry is in the top 30% of over 250 Zacks industries. Endava offers international exposure to the thriving industry with its offerings of software engineering, technology consulting, and other related services.

Endava’s fiscal third-quarter earnings came in 11% above EPS expectations at $0.72 per share. This was also up 12% from the prior-year quarter. On the top line, sales surpassed estimates by 6% at $247.28 million and rose 9% year over year.

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Trading at $51 a share and still 56% from its 52-week highs, now appears to be an opportunistic time to buy Endava stock as many tech companies continue their inflationary recovery and investor sentiment grows. To that point, Endava’s earnings are now forecasted to rise 5% this year and climb another 18% in FY24 at $3.20 per share.

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Vipshop (VIPS - Free Report) )

Another tech stock that sticks out with a Zacks Rank #2 (Buy) after beating earnings expectations on Tuesday is Vipshop Holdings.

Based in China, Vipshop is an online discount retailer of famous branded apparel, fashion goods, cosmetics, home goods, and other lifestyle products. Vipshop appears to be benefitting from a strong business environment as well with its Internet-Delivery Services Industry in the top 17% of all Zacks industries.

Vipshop blasted its fiscal first-quarter EPS estimates by 31% with earnings at $0.51 per share compared to expectations of $0.39 a share. Even better, Q1 earnings climbed 51% YoY. Sales also came in 6% higher than expected at just over $4 billion and were slightly up from Q1 2022. More intriguing, Vipshop has now surpassed earnings expectations for five consecutive quarters.

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The string of earnings beats could continue with Vipshop’s EPS growth looking steady. Trading just under $15 a share, annual earnings are projected to rise 6% this year and jump another 5% in FY24 at $1.74 per share. Plus, earnings estimate revisions have remained higher over the last 60 days.

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Takeaway

Endava and Vipshop are worthy of investors’ consideration as they offer foreign exposure to strong business industries at the moment. Their annual growth is very attractive right now and more upside could be ahead as global inflationary concerns ease and operating conditions stabilize for many tech companies.


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Vipshop Holdings Limited (VIPS) - free report >>

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