Quant Ratings on 3 stocks to bet in technology sector
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Driven by a boom in generative AI, the technology sector has led the pack this year, jumping 42% in the first-half of 2023, while the accompanying ETF rallied 40% in the first-half of 2023. The sector faced a challenging environment in 2022 amid a hawkish Fed, resulting in the steep declines. However, market participants have piled back into the volatile sector with the Fedâs tightening cycle nearing an end.
Examining the space with the help of Seeking Alpha's Quant Rating system, the technology sector notches an average health score of 3.34. The Quant Rating system assigns grades according to quantitative measures, like valuation, earnings growth, and recent stock performance, with the highest possible score of 5. 
Diving deeper into the sector, six out of 75 companies are considered a Strong Buy according to their Quant Ratings. 5 are labelled as a Buy, with 62 stocks having a Neutral rating. 
Chipmaker Broadcom (NASDAQ:AVGO) leads the pack with a Quant score of 4.95. The company's score received a boost from its high profitability and momentum grades. Its score was dragged down by its valuation grade of D.
The chipmaker guided Q3 revenue above consensus in its Q2 results. Broadcom shares have rallied nearly 62% this year, benefitting from the increased demand for semiconductors spurred by the AI boom. 
Business software provider Salesforce (NYSE:CRM) clinches second place with a score of 4.93. Its profitability and momentum grades were the main drivers, with its valuation grade lagging. 
Salesforce stock has jumped nearly 70% this year, as the company dealt with several activist investors and rolled out new AI offerings. On Wednesday, the company announced pricing for its generative AI tech. 
Photoshop owner Adobe (NASDAQ:ADBE) ties with CRM, with a score of 4.93. Profitability and momentum grades drove its rating higher. with valuation grade being the area of concern. Adobe stock has gained about 54% this year. The enterprise software maker raised its fiscal outlook after it reported better-than-expected Q2 results.
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