3 Tech Stocks the Market Is Begging You to Buy! (TWTR AAPL BBRY)

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Despite gains of more than 2% Friday, U.S. equities remain sharply lower for the full year.

3 Tech Stocks the Market Is Begging You to Buy! (TWTR AAPL BBRY)

Source: ©iStock.com/LincolnRogers

The technology-heavy NASDAQ is down about 8%, even with a strong end to last week, and it has thereby created great investment opportunities for those able to see it.

Specifically, there are three tech stocks to buy that have incurred significant losses in recent weeks — stocks that have fallen well below their respective worth.

These include Twitter Inc (TWTR), Apple Inc. (AAPL) and BlackBerry Ltd (BBRY) — three stocks with great upside from this point forward.

Tech Stocks to Buy: Twitter Inc (TWTR)

Tech Stocks to Buy: Twitter Inc (TWTR)Recently, I explained why the things that are crushing Twitter stock are actually good for the business long-term. This is a company that was in desperate need of change — a company that was quickly losing its appeal with advertisers, users and investors. Therefore, drastic changes to management and corporate structure, as well as a decision to target an additional 500 million consumers with advertisements were all necessary regardless of the short-term negative stock effects it has created.

Fact is that Twitter stock is now almost 70% off its 52-week high, and is trading at a stock multiple to this year’s expected sales that better reflects a slow-growing company like Microsoft Corporation (MSFT).

While growth expectations for Twitter have quickly been revised lower over the last four months, it is a company that is still expected to grow 40% this year, on top of 58% growth last year.

Furthermore, its full-year EPS outlook for 2016 has been revised lower to $0.55 from $0.59 three months earlier. The problem with these revisions lower is that new CEO Jack Dorsey has since cut 8% of its workforce to achieve big cost savings this year. Not to mention, TWTR will now monetize 500 million logged off users at about half the rate of logged in users, suggesting that revenue growth will be far better than analysts anticipate.

When you put it all together, TWTR stock is too cheap with far better prospects that many fear. The bottom line: Expect Twitter stock to bounce off the bottom rather quickly.

Tech Stocks to Buy: Apple Inc. (AAPL)

Tech Stocks to Buy: Apple Inc. (AAPL)Apple stock is down 28% from last year’s high, and quite frankly, AAPL is deserving of these losses. During its most recent quarter, the fiscal first quarter, revenue grew just 1.7%, and the company’s guidance implies a double-digit decline in revenue during this coming quarter.

That would mark the first decline in the company’s iPhone era.

So, one could certainly say that the mighty has fallen. However, it’s not that simple.

First, the reason that Apple is experiencing slowed growth and even losses is because of the comparable year in 2015. Last year, total revenue grew almost 28%, much faster than the single-digit growth in the two years prior.

Thus, if you look at Apple’s fiscal first-quarter revenue and second-quarter guidance, it is a victim to its tremendous year in 2015. The fact that it grew 27% in the same quarter last year means that even with declines expected for the current quarter, AAPL is still growing on a comparable basis.

That said, the drastic turn from rapid growth to revenue declines may make AAPL deserving of stock losses, but now that the dust has settled, investors should be able to see the value that lies in Apple stock. It is a stock that trades at less than 10 times next year’s expected EPS of $10.06, minus cash. That is incredibly cheap for a company that maintains a single-digit comparable growth rate, the world’s largest buyback program and a 2.1% dividend yield.

In other words, don’t be shocked if AAPL is back at all-time highs by the end of 2016.

Tech Stocks to Buy: BlackBerry Ltd (BBRY)

Next Page Tech Stocks to Buy: BlackBerry Ltd (BBRY)For the first time in half a decade, the prospects for BlackBerry  are looking bullish. Yes, BBRY stock has fallen 24% this year. But after years of lost market share and trying desperately to push its own mobile operating system and hardware, BlackBerry has finally embraced Android.

BBRY launched the Priv late last year, a smartphone that has all the perks of BlackBerry hardware but with the operating system and applications of Android. As a result, BBRY is no longer trying to preserve its less than 1% market share of the mobile operating system industry, but rather capture a larger percentage of the 80% worldwide smartphones that are powered by Android.

That said, BlackBerry’s most recent quarter was not a good indication of the Priv’s performance. It included just one month of Priv sales, and the phone was sold by only one of the four nationwide carriers.

Yet still, the Priv had a big enough impact during its one month at a single carrier to bump the company’s average selling price of hardware from $240 to $315 in the quarter. That is significant, and paints a very bullish picture for the company’s future with Android.

Nevertheless, if the Priv is even a minor success, it will still have a profound effect on BBRY stock. The phone’s price is $700, far higher than that of other BlackBerry smartphones. If BBRY can sell two million units, that creates $1.4 billion in revenue, and hundreds of millions in free cash flow.

So clearly, the Priv and other Android-powered hardware will serve as a huge catalyst for BlackBerry in 2016. The company will continue to produce new hardware and launch products across the globe. If successful, that will feed into services, software, etc.

With BBRY stock losing 90% of its value over the last five years and showing signs of strong Priv performance in its infancy, there are reasons to be bullish. And keep in mind, BBRY stock jumped from $7 to $9.50 to end 2015 based on the Priv’s perceived performance. BBRY stock has only fallen because of the market, making it that much more attractive for the rest of 2016.

As of this writing, Brian Nichols owns stock in Apple, BlackBerry, and Twitter. 

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Article printed from InvestorPlace Media, https://investorplace.com/2016/02/tech-stocks-buy-twtr-aapl-bbry/.

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