Tech stocks have gone from the darlings to the dogs of Wall Street. In just one month, the technology sector sunk 10%! For many beaten-down tech stocks, this selloff is just a blip on the long-term climb higher.
This is because overall the fundamentals, i.e. long-term healthy demand and huge market opportunities, remain firmly in place. After all, whether or not you like it, we still live in a society dominated by Big Tech, and that’s not about to change anytime soon.
Using TipRanks, I can dig down to the outlook for these stocks, upside potential and analyst consensus rating.
With that in mind, let’s dive into these top tech stock picks now:
Buy-Rated Tech Stocks: RingCentral (RNG)
Firing on all cylinders is how five-star Jefferies analyst John Difucci describes RingCentral Inc (NYSE:RNG). RNG is a provider of cloud-based communications and collaboration solutions for businesses. Its recently released third-quarter earnings smashed expectations, as did 2018 revenue guidance (raised even above the 3Q beat). The company announced several large new international wins, reflecting a massive new market opportunity.
In short: “very healthy momentum” is afoot. That makes this stock a secular winner and quality SaaS asset.
Difucci’s “buy” rating came with a bullish $105 price target. This suggests upside potential of 24%- Ka-Ching! Worthy of note is that Difucci (Track Record & Ratings) ranks as one of the Top 25 Wall Street analysts on TipRanks. So it’s clear he knows a thing or two about stock picking. Plus shares are currently down on a 3-month basis (but up year-to-date). However, it’s the stock long-term potential that really makes this stock a bargain right now.
Not that Difucci’s alone in his RNG bull call: this is a stock with a ‘Strong Buy’ Street consensus. In the last three months, top analysts have published five Buy ratings on RNG, vs. one hold rating. Meanwhile, the average price target stands at $97. Interested in RNG stock? Get a free RNG Stock Research Report.
Buy-Rated Tech Stocks: Boingo Wireless (WIFI)
Shares in Boingo Wireless Inc (NASDAQ:WIFI) have plunged 22% in the last three months. That makes this stock particularly appealing right now. The world is becoming increasingly connected- and Boingo is partly responsible. Boingo provides high-speed wi-fi service to airports, hotels, military bases and other public places worldwide. Its small cell networks reach over a billion people annually says the company.
“Boingo has successfully transitioned its business model to become a wholesale shared infrastructure/spectrum company, enabling connectivity in dense locations” cheers Oppenheimer’s Timothy Horan (Track Record & Ratings). He sees shares surging 60% from current levels all the way to $39.
Yes Q3 results came in mixed, but long-term trends remain strong says Horan. And additional catalysts on the horizon include international growth, small cells, 5G, and possible REIT conversion. Indeed, Boingo has been more aggressive pursuing international deals, recently announcing a large deal in Brazil to provide 54 airports with WiFi. International revenue only makes up 5% of the current revenue mix, but Horan thinks this can double over a few years.
Add in the fact that WIFI could also be an M&A target for a larger shared infrastructure company, and you can see why this stock still boasts 100% Street support. Get the WIFI Stock Research Report.
Buy-Rated Tech Stocks: Vonage (VG)
Cloud communications stock Vonage Holding Corp. (NYSE:VG) uses your Internet connection to make and receive calls. Now’s the time to get in early. The company is at a critical juncture. It’s transitioning away from consumer (higher-margin business) and investing for growth in business.
Indeed, business services now mmakeup 59% of revenue, which should reach 75% in 2020E. This is due to solid growth and the savvy acquisition of NewVoiceMedia (NVM).
NVM is a premier cloud contact center that expands VG’s business communications suite, adds valuable crossselling opportunities and go-to-market relationships with CRM service providers says Oppenheimer’s Horan (Track Record & Ratings). He sees shares surging 48% in the coming months.
“We maintain our $17 PT, based on our SoTP [sum-of-the-parts model and consider today’s drop a buying opportunity,” the analyst wrote post 3Q results. Total revenue missed by 150 bps but normalized/organic growth was in line and should improve. Four analysts have rated the stock recently: all are bullish. Their average price target of $18.33 translates into 60% upside potential. Get the VG Stock Research Report.
Buy-Rated Tech Stocks: Apple (AAPL)
Apple Inc. (NASDAQ:AAPL) stock is looking pretty bruised right now. First, it disappointed with revenue guidance for the crucial holiday shopping quarter. Then it revealed unit sales of iPhones, iPads and Macs won’t be reported anymore. This sneaky move means Apple can mask lower unit sales with higher selling prices.
Not surprisingly this jaw-dropper was followed by a couple of analyst downgrades. All in all, shares are now down 9% in just one month. For Apple supporters, this pullback means the stock is now trading at a steep discount. Wedbush analyst Daniel Ives, for example, see shares reaching $310. This mean shares can climb over 50% to $310. He sees Services becoming a whopping $50 billion by fiscal 2020.
Plus “Based on our analysis we believe 350 million iPhones are in the “window of opportunity” to upgrade over the next 12-18 months with Apple needing to capture a majority of these units as part of this upgrade cycle to make a clearly successful iPhone product cycle in 2019” notes Ives (Track Record & Ratings).
Overall, this ‘Moderate Buy’ stock is currently juggling 17 buy ratings, 10 hold ratings and 1 sell rating. Its average price target is $239. Get the AAPL Stock Research Report.
Buy-Rated Tech Stocks: Blucora (BCOR)
Blucora, Inc. (NASDAQ:BCOR) is looking like a steal right now. It’s been way oversold. The company provides tech-enabled financial solutions to consumers, small business owners, and tax professionals across the US.
The company is currently trading down 16% in the last month. Blucora reported third quarter financial results that were above both analysts’ expectations and management’s guidance. Full-year 2018 guidance was narrowed (raised the bottom end, lowered the top end), which forced analysts to reduce Q4/18 estimates and the stock to fall. However bear in mind shares are still up 38% year-to-date- and crucially, have the potential to soar much higher.
“At current levels, Blucora is trading at 2.5x our 2019 revenue estimate, 11.5x our 2019 adjusted EBITDA estimate and 13.2x our 2019 non-GAAP EPS estimate, a big discount to its Tax Prep peer group, which trades (on average) at 4.7x, 12.4x and 21.9x, respectively” writes Barrington Research analyst Alexander Paris (Track Record & Ratings).
He continues: We believe the stock is oversold and, as such, are reiterating our ‘outperform’ investment rating and $40 price target, which assumes an 18x multiple on our 2019 adjusted EPS estimate and suggests 40% upside from current levels.” Get the BCOR Stock Research Report.
Buy-Rated Tech Stocks: PTC Inc (PTC)
Software stock PTC Inc (NASDAQ:PTC) provides tech solutions that transform how products are created and serviced. This involves everything from augmented reality to 3D printing.
CEO Jim Heppelmann doesn’t hold back when he says: “We stand at the frontier of a new age of innovation, where the industrial revolution is colliding head on with the digital revolution…”
And now Evercore analyst Ken Talanian (Track Record & Ratings) has met up with PTC’s CFO, Andrew Miller. “PTC management brought an upbeat tone to meetings that we believe is appropriately reflective of results” the analyst wrote post-meeting.
Encouragingly, PTC’s business sees little evidence of a slowing macro environment. In fact, management noted that in the last three quarters the company hasn’t seen a properly qualified deal go away and many deals are seeing upsizing.
“We view the recent selloff as largely sentiment driven given that PTC’s fundamentals were strong in F4Q18 and the company offered compelling guidance for F19” says Talanian.
Net-net this is an opportunity to buy shares at a considerable discount to the $94.50 at which ROK priced its well diligenced $1B investment. Indeed, analysts see upside potential of over 30% for this ‘Strong Buy’ stock. Get the PTC Stock Research Report.
Buy-Rated Tech Stocks: Alphabet (GOOGL)
Cheap isn’t necessarily the first word that comes to mind when you’re looking at a stock priced above $1000. But Alphabet Inc (NASDAQ:GOOGL) still has a cheap multiple relative to growth and relative to peers.
“Our view is that Alphabet is the more defensive play of the FANGs in this volatile market environment” gushes Aegis Capital analyst Victor Anthony (Track Record & Ratings).
The stock has multiple support and has multiple growth levers in play that should drive shareholder value, says the analyst. At $1,425 his price target suggests shares could rise over 33%.
Anthony wasn’t in the least disturbed by Q3 results, noting that even though core Google Website revenue growth of 22% decelerated 4pts from 26% 2Q18, this was off a 3pt tougher comp – so a solid growth trend.
Meanwhile, self-driving unit Waymo, the sleeping giant within the portfolio, has started to generate revenue and is testing additional monetization models.
“Despite the business continuing to benefit from multiple secular tailwinds the shares have been hindered due to margin concerns, regulatory concerns, and GDPR risks” writes Aegis. However, he sees the stock working through these concerns due to growth opportunities in Search as result of new and enhanced ad formats and AI, continued strength at YouTube, and growth of enterprise cloud computing.
Out of 29 analysts polled on GOOGL, 26 are bullish while only three are sidelined. In total ,the average price target works out at $1,350 (26% upside potential). Get the GOOGL Stock Research Report.
TipRanks.com offers exclusive insights for investors by focusing on the moves of experts: Analysts, Insiders, Bloggers, Hedge Fund Managers and more. See what the experts are saying about your stocks now at TipRanks.com. As of this writing, Harriet Lefton did not hold a position in any of the aforementioned securities.