The recent resurgence of the bulls in the stock market has captured the attention of investors far and wide. With the S&P 500 and the Nasdaq confidently maneuvering above their 21-day and 50-day moving averages in the wake of a monumental two-week recovery, the optimism seems palpable.

Despite the looming specter of potential selling and volatility – epitomized by Nvidia’s meteoric 30% surge in a heartbeat – the bulls seem firmly entrenched in the driver’s seat. They are eagerly eyeing the horizon, buoyed by the promise of robust, tech-propelled earnings growth and the impending allure of interest rate cuts.

The Federal Reserve’s July minutes hint at the inception of a dovish cycle at the forthcoming FOMC meeting scheduled for September 17 and 18. The crucial inquiry on Wall Street pertains to whether the Fed will opt for a 25-basis point cut or a bolder 50-point reduction. The CME Fed Watch Tool currently places the odds of a 50 bps cut at around 35%.

Amidst this backdrop, investors are eager to deepen their stakes in the stock market. Today, we delve into two under-the-radar Zacks Rank #1 (Strong Buy) technology stocks that promise substantial growth and value potential in pivotal industries.

Qualys (QLYS) stands tall as a provider of cloud-based cybersecurity, compliance, and IT solutions. Its wide-ranging clientele encompasses enterprises, small to medium-sized businesses, governments, and various entities – a diversity that shields Qualys from the vicissitudes of spending trends and business cycles.

In an era where cybersecurity constantly looms as a peril in our digital landscape, companies face an arduous task in scaling back expenditure, let alone eliminating it altogether. Hence, the resilience portrayed by Qualys amidst fierce cybersecurity competition and a significant share of international sales signals its mettle.

Despite encountering headwinds from decelerating global economic growth and currency fluctuations on the horizon, Qualys has weathered the storm of diminishing sales projections after a streak of over five years blessed with double-digit revenue growth. Presently, the sun seems to peek through the clouds.

With over 10,000 subscription customers worldwide and an average revenue growth of 15% over the past five years, Qualys is projected to elevate its sales by 8% in both FY24 and FY25, reaching a pinnacle of $649 million in the subsequent year.

Forecasts suggest an upswing in adjusted earnings by 6% in 2024 and a subsequent 4% in the following year – a positive trajectory that earned Qualys a coveted Zacks Rank #1 (Strong Buy). These post-Q2 revisions act as a restorative balm, countering the downward revisions that cast a shadow on its stock price earlier this year.

The recent nosedive of 40% since late 2023 has painted a contrasting picture. Yet, reflecting on its staggering 395% surge in the past decade – outshining the Zacks Tech sector’s 300% – Qualys stands at a juncture of immense potential. Its current position below the 200-week moving average and record-breaking oversold levels in RSI terms may herald a resurgence for investors starved of tech stock prospects.

Amid the quest for bargain deals in the tech realm, Qualys appears poised to ascend. Its robust balance sheet encapsulates a reservoir of strength vital for navigating the competitive industry landscape.

Trading at its lowest level in a decade, with a forward 12-month earnings multiple of 31.1X, signifies a 90% markdown from its zenith and a compelling 50% discount relative to its median valuation – inviting the discerning investor to delve deeper.

Celestica Inc. (CLS) stands out as a front runner in design, manufacturing, hardware platforms, and supply chain solutions. Its expansive portfolio caters to a broad spectrum of industries including communications, aerospace and defense, energy, healthcare technology, and industrial equipment – underscoring its multifaceted prowess.

Propelled by the burgeoning realms of data centers, AI, the energy transition, and other flourishing segments, Celestica operates through two distinct units: Advanced Technology Solutions (ATS) and Connectivity & Cloud Solutions (CCS).

Maintaining a stellar growth trajectory, Celestica surged by 29% in 2022 and another 10% in FY23, culminating in a robust performance in Q2 FY24. Projections paint a promising picture, with revenue forecasted to soar by 19% this year and an additional 9% in 2025, catapulting the firm from $7.96 billion in the previous year to $10.28 billion by FY25.