Tech Sector Outperforming on Strong Earnings, Albion Financial's Ware Tells CNBC

NEW YORK (TheStreet) -- The recent tech sector rally is driven by strong earnings from giants such as Alphabet,  (GOOGL)  Amazon.com (AMZN) and Microsoft (MSFT), all of which released quarterly results late last month, Albion Financial's Jason Ware said on CNBC's "Power Lunch" Monday.

Earnings reports in the recent quarter "ignited" the rally because they showed "maybe things are a little bit better than the street and investors at large have expected," Ware stated.

"After the first half of the year, where tech under performed the broader market and investors were getting maybe a little weary after a three to four year out performance in the NASDAQ, they moved to other sectors in a more defensive posture," he explained.

Another leader in tech is Apple (AAPL). Broadleaf's Doug Mackay mentioned that he is now bullish on the stock, pointing to growth in the company's services business and its ability to generate profit in the third quarter despite declining revenues.

Shares of Alphabet slipped late this afternoon.

(Alphabet is held in Jim Cramer's charitable trust Action Alerts PLUS. See all of his holding with a free trial here.)

Separately, TheStreet Ratings rated Alphabet as a "buy" with a score of A.

The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and reasonable valuation levels.

Although no company is perfect, currently TheStreet Ratings does not see any significant weaknesses which are likely to detract from the generally positive outlook.

You can view the full analysis from the report here: GOOGL

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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