4 Red Hot Tech Stocks Of October

I love summer and, thankfully, I didn’t have to wait a full-year to enjoy my favorite season. I simply looked at the stock market: “It’s getting hot in here!”

Snapshot of the “Hottest” Month in 4 Years

Following August’s market rout and the slump in September, stocks staged a dramatic comeback in October turning the heat up.

In fact, it was the “hottest” month in four years.

Why?

Because the U.S. stock indexes posted the highest monthly gain since 2011.

Let’s look at the major indexes for October-

What propelled the stocks? In our view, 3 things:

China and European Central Bank’s commitment to give a boost to waning growth

Federal Reserve’s decision to keep the rates steady, and

Solid quarterly results posted by several large companies

4 Red Hot Tech Stocks of October

Aided by strong earnings reports and continued consolidation in the semiconductor industry, the technology sector witnessed excellent returns during the period.

Here is a list of 4 tech stocks that had a stellar October.

We expect this trend to continue in the near term since all these stocks have a favorable Zacks Rank as well as an attractive Growth and Momentum Style score.

Our Growth Style Score condenses all the essential metrics from the company’s financial statements to achieve a true sense of quality and sustainability of its growth. Our research shows that stocks with Growth Style Scores of ‘A’ or ‘B’ when combined with a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer the best investment opportunities in the growth investing space.

KLA-Tencor Corporation (KLAC – Analyst Report)

October Return: 34.24%

Zacks Rank #2

Growth Style Score: B

Momentum Style Score: A

KLA-Tencor’s first-quarter fiscal 2016 earnings of 71 cents a share, topped the Zacks Consensus Estimate of 56 cents by 26.8%. Apart from this, what drove the shares higher was its decision to merge with semiconductor equipment maker, Lam Research Corp. (LRCX – Analyst Report).