Here's a fund manager's three overlooked tech stocks with 'mission critical' products to weather any economic storm

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Our call of the day digs through the dumpster of unloved tech names and finds some gems that can hold on through any economic storm ahead.

An environment of rising interest rates has made the Nasdaq Composite COMP hard to love the past year, but its 22% drop seems to be opening opportunities for some.

That brings us to our call of the day, from Chul Chang, a manager on Vontobel’s U.S. Equity Institutional Fund VTUIX . He says investors have so busy chasing companies that can handle unexpected macro worries, they’ve overlooked gems with “mission critical products” that are well-armored for economic downturns.

He also likes ServiceNow NOW , down 22% so far this year. The software company and its cloud computing platform is the “main player” used by corporates to systemize their workflow. “In this case, 5G, but also what 5G is going to be doing for the Internet of Things, or AI or EVs,” he said, noting that Keysight’s tools are used to test EV infrastructure, batteries, inverters, so there is a lot of “increasing usage that’s only getting started.”

The European Central Bank meeting is on tap, though few expect a move on rate hikes until July as the bloc battles inflation that hit a record 8.1% year-over-year in May. Next week will bring Fed, Bank of England and Bank of Japan meetings.

 

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