Analyst: buy these three big cap tech stocks ahead of earnings

Higher rates, inflation, currency, trade tensions – headwinds, for sure, are plenty for the tech stocks at least for now. Still, Daniel Flax (Neuberger Berman) greenlights owning them even in this environment.

Flax explains his bullish view on tech stocks

His constructive view is predicated on billions of dollars worth of investment on research and development that equips the quality names in this space with ability to navigate the current environment. On CNBC’s “Squawk Box”, Flax said:

Then, of course, tech stocks are all the more attractive to own now that valuations have come down significantly in 2022. Nasdaq Composite – the tech-heavy stock market index is down more than 30% for the year at the time of writing.

Flax reveals his favourite stocks in this space

Flax is particularly bullish on the beaten down Amazon.com Inc (NASDAQ: AMZN) and Microsoft Corporation. He also expects Alphabet Inc (NASDAQ: GOOGL) to be an outperformer in 2023 and beyond.

Google is set to report its quarterly results on Tuesday. Consensus is for it to earn $1.25 a share, down about 10% on a year-over-year basis. At just over 19 times, this stock is trading sharply below the average of its price-to-earnings multiple over the past five years.