3 Disruptive Tech Stocks to Buy for Game-Changing Profits

  • Lucid Group (LCID): EV maker potentially presents limited downside risk despite a significant production cut for 2022 due to supply chain issues.
  • Teladoc Health (TDOC): Telehealth stock has robust revenue growth forecast of more than 25% for 2022.
  • UiPath (PATH): Robotic process automation company enjoys a solid net revenue retention rate of 145%.
tech stocks
Source: Andrey Suslov / Shutterstock

Tech stocks have been beaten down significantly so far in 2022. High valuations, rising interest rates, and the war in Ukraine have sent the majority of high-flying tech shares crashing down.

Meanwhile, the anticipated rate increases throughout 2022 particularly restrained tech stock valuations. For instance, the Dow Jones U.S. Technology Index has declined almost 17% YTD, while the tech-heavy Nasdaq 100 Index has fallen 14% in 2022.

Yet, there are some attractive buy-the-dip opportunities following the tech selloff. And I’ve seen some stabilization in the past few weeks. As a result, investors wonder if the second quarter is the right time to grab them at a bargain price.

The tech stocks in our list look poised to innovate and grow their reach in coming quarters. They boast unique competitive advantages as well as sticky consumer and global footprints. I believe they could make their shareholders wealthier in the coming years.

With that information, here are the three best tech stocks to buy for game-changing profits:

LCID Lucid Group $21.08
TDOC Teladoc Health $64.58
PATH UiPath $20.14

Lucid Group (LCID)

Someone is viewing a red Lucid Air car on a computer screen while holding a phone that says Lucid
Source: T. Schneider / Shutterstock

Our first tech stock, Lucid Group (NASDAQ:LCID), is a widely-followed name in the electric vehicle (EV) space. Its battery offers a 520-mile range on a single charge. The car group also has plans to expand into residential, commercial, and utility-scale energy storage markets.

Lucid reported fourth quarter 2021 results on Feb. 28. Revenue, which currently relies on reservations, surged 630% to $26.4 million. Net loss increased to $1.05 billion, or 64 cents loss per diluted share, up from $298 million in the prior-year quarter. Cash and equivalents ended the period at $6.2 billion.

Lucid’s reservations reached 25,000 EVs at the end of February. However, management announced a significant production cut from its previous outlook of 20,000 EVs to only 12,000 – 14,000 due to “extraordinary supply chain and logistics challenges.”

The EV maker plans to launch its first production plant outside the U.S. in Saudi Arabia, with a total capacity to produce 150,000 vehicles per year.

LCID stock has declined 46% YTD. Meanwhile, the 12-month median price forecast for Lucid Group stock stands at $45. I believe the production issues are already factored into the share price of the EV company.

Teladoc Health (TDOC)

Teladoc Health (TDOC) logo on a mobile phone screen
Source: Piotr Swat / Shutterstock.com

Our second tech stock, Teladoc Health (NYSE:TDOC), is the leading virtual health provider in the U.S. Its platform enables individuals to receive on-demand virtual medical care at the convenience of their homes or workplaces. Understandably, the pandemic put TDOC shares into the limelight.

Teladoc Health announced Q4 2021 results in late February. Revenue jumped 45% YOY to $554 million. Net loss declined to $11 million, or 7 cents loss per share, down from $394 million in the prior-year quarter. Cash and equivalents ended the quarter with $894 million.

The telehealth company reported that the total number of virtual visits increased 41% YOY during the quarter. In addition, the average revenue per paid subscriber grew 52% YOY over the past year.

In 2022, management forecasts revenue to come between $2.55 billion and $2.65 billion. That range implies more than 25% growth.

TDOC stock has fallen 62.5% over the past year and 27.5% YTD. Compared to a year ago, shares look like a bargain at around five times trailing sales. At present, the 12-month median price forecast for Teladoc stands at $95.

UiPath (PATH)

The UiPath logo on a smartphone in front of a computer screen.
Source: dennizn/Shutterstock.com

Our final tech stock is the software group UiPath (NYSE:PATH). It specializes in robotic process automation (RPA), also known as bots. RPA helps increase productivity in the workplace. For example, it eliminates repetitive tasks and frees up employee time for essential work.

Uipath released Q4 FY22 results on March 30. Revenue increased 39% YOY to $290 million. Adjusted net income came in at $27.2 million, or 5 cents per diluted share, down from $47.3 million in the prior-year quarter. Cash and equivalents ended the period at $1.9 billion.

Wall Street was pleased that the annual recurring revenue (ARR) soared 59% to $925.3 million. Put another way, UiPath has a solid subscription business. In addition, the company’s net revenue retention rate remained strong at 145%.

However, management guided revenue growth of only 22% YOY for the new fiscal year. Thus, for FY22, investors are looking at a decelerating growth rate from 47%.

Like most other tech stocks recently, PATH stock has declined 54% YTD. Shares are trading at 10.3 times trailing sales. Finally, the 12-month median price forecast for UiPath stands at $35.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Tezcan Gecgil has worked in investment management for over two decades in the U.S. and U.K. In addition to formal higher education in the field, she has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Her passion is for options trading based on technical analysis of fundamentally strong companies. She especially enjoys setting up weekly covered calls for income generation.


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