Tech stocks were among the worst performers this week. When will the sector see a turnaround—and should investors be buying on the dips? Scott Kessler, equity analyst at Standard & Poor’s, and John Aiken, director of equity research at Majestic Research, shared their sector outlooks.
“We think it’s a good time to be involved in the technology sector,” Kessler told CNBC.
“The third quarter is seasonally weak for the sector and we think that this is being exacerbated by what’s going on in the economy, as well as inventory shortages that are turning into inventory gluts.”
However, Kessler said while techs tend to underperform in the third quarter, they are historically known to outperform in the fourth quarter.
“So we think it’s appropriate to get ready for that outperformance now,” he said.
Kessler has “Strong Buys” on:
LDK Solar —"[They are a] large China-based solar company," Kessler said of the firm. "The company reported results recently and we thought they were very good."
Scorecard—What They Said:
- Aiken's Previous Appearance on CNBC (Jul. 9. 2010)
- Kessler's Previous Appearance on CNBC (Jul. 20, 2010)
More Views on Tech:
- I'd Still Buy HP Stock: BlackRock's Doll
- Sectors Most Likely Impacted by Innovation and Tech
- 'Fast' Traders: The Better Way to Play Tech Weakness?
CNBC Data Pages:
Kessler does not own shares of AAPL, EBAY, EMC, GOOG, IBM, LDK, NOK, ORCL, ENER, ERIC, ERTS, SNIC or VRSN.
No immediate information was available for Aiken or his firm.