With the digital innovation space kicking into high gear with advancements such as artificial intelligence, it might pay off to consider strong buy tech stocks. By definition, these enterprises represent publicly traded technology firms that enjoy a strong buy consensus view – or the equivalent.
To be fair, if you’re looking to load up on tech stocks, going with the heavily endorsed ideas might not give you a bargain rate. Like anything in life, it’s give or take. If you want the predictability of top tech stocks, you’re going to sacrifice upside potential. On the flip side, if you want dramatic, life-changing returns, predictability will often go out the window.
At the same time, analyst-supported ideas may offer a more sensible approach. With the Federal Reserve dealing with a difficult economic framework of seeking disinflation in a hot labor market, risk-on enterprises may have a short shelf life, especially if interest rates continue to rise. On that note, below are the best tech stocks to buy now, according to the experts.
Alphabet (GOOG, GOOGL)
A powerhouse among strong buy tech stocks, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) might appear to have lost some of its thunder. After all, other enterprises have made significant gains in areas such as AI. However, the company deserves respect because its Google ecosystem likely isn’t going anywhere. For example, Google currently owns 92% of the global search engine market.
According to information provided by TipRanks, analysts presently peg GOOG as a strong buy – well, that’s the point of this story, right? This assessment breaks down as six buys, two holds and zero sells. Further, the experts’ average price target lands at $142.63, implying a bit over 8% upside potential.
On a financial note, GOOG doesn’t offer the greatest discount. For instance, shares trade hands at a forward earnings multiple of 23.2. That’s a bit higher than the sector median of 22.71x. Still, Alphabet enjoys a three-year revenue growth rate (per-share basis) of 22.9%. It’s also consistently profitable, warranting consideration for one of the top tech stocks.
Amazon (AMZN)
Easily one of the most well-known strong buy tech stocks, Amazon (NASDAQ:AMZN) first inked its name into the cultural lexicon through its e-commerce business. It pretty much pioneered the online marketplace industry. From there, it launched into myriad other innovations such as cloud computing. By being an integral component of the ground floor of the consumer economy, Amazon isn’t going anywhere but up on a long-term basis.
Unsurprisingly, Wall Street analysts agree with this overall assumption. Indeed, AMZN isn’t just a run-of-the-mill strong buy tech stocks. Rather, it’s a unanimous strong buy based on 29 analysts. Overall, their average price target lands at $152.52, implying nearly 16% upside potential. Interestingly, the high-side price target stands at $204, implying nearly 55% growth.
Now, no one investment is perfect. If you want to load up on tech stocks on the cheap, AMZN isn’t it. Right now, shares trade for 82X forward earnings. That’s expensive. However, the company still represents a growth machine with a three-year sales expansion rate of 21.9%. Again, it’s a solid idea for the long haul.
Mastercard (MA)
While technically not one of the pure-play ideas among the best tech stocks to buy now, financial services firm Mastercard (NYSE:MA) deserves consideration. Regarding the theme of the hour, the company has invested heavily in its payment technology solutions and customer experiences. On a fundamental note, Mastercard may see a cynical upside as more people turn to plastic to make ends meet.
Another reason to peg MA as one of the strong buy tech stocks centers on its universal appeal among the expert class. Per TipRanks, Mastercard presently carries a unanimous strong buy view among 19 analysts. Further, their average price target clocks in at $461.44, implying over 16% upside potential. In addition, the high side target comes in at $526, implying over 32% growth.
As with the other ideas, if you want to load up on tech stocks at a discount, Mastercard isn’t the best idea. Right now, shares trade at a forward multiple of 32.59. In contrast, the credit services sector runs a median multiple of 8.86. However, Mastercard is relevant and enjoys robust and consistent profitability.
Intuitive Surgical (ISRG)
An exceptionally enticing idea for strong buy tech stocks, Intuitive Surgical (NASDAQ:ISRG) specializes in minimally invasive care. Thanks to its da Vinci surgical system, medical doctors can perform complex operations accurately while yielding minimal recuperation period in hospital for patients, thus reducing costs and burdens across the board. Unsurprisingly, ISRG gained 22% of its equity value since the January opener. It’s also up nearly 36% in the trailing year.
Again, following in line with the theme, analysts peg ISRG as a strong buy. It’s not a unanimous vote though it’s darn close. Among 14 analysts, only two dissented, choosing to assess shares as a hold. Overall, the experts’ price target lands at $377.14, implying over 16% upside potential. The high-side target comes in at $400, implying over 23% growth.
As with many other celebrated top tech stocks, ISRG carries a rich premium of 59x forward earnings. It also trades at 17.38X trailing revenue. However, its balance sheet is robust with zero debt. That’s worth keeping in mind.
Microsoft (MSFT)
While an incredibly boring enterprise if you’re looking to load up on tech stocks, Microsoft (NASDAQ:MSFT) makes up for it with its exceptional relevance. Sure, everybody loves their portable smart devices from that “fruit” company. However, when it comes to running business applications on desktops, Microsoft Windows beats out everybody else. It’s not close.
Of course, Microsoft has been aggressively investing in other areas, particularly AI. Thanks to its partnership with OpenAI and its remarkable chatbot ChatGPT, the deal adds new life to MSFT. Subsequently, analysts responded in kind, making MSFT one of the strong buy tech stocks.
Although MSFT does carry one hold and one sell view, 30 other experts believe it’s going places. And that place would be an average price target of $391.63 or over 16% up. Along with the other ideas for the best tech stocks to buy now, I can’t say that MSFT is remarkably cheap. Although priced at 30.35X forward earnings, Microsoft is pretty much fairly valued. More importantly, the company delights shareholders with solid top-line growth and excellent profit margins.
Advanced Micro Devices (AMD)
When it comes to graphics processing units (GPUs), the main rival of Advanced Micro Devices (NASDAQ:AMD) gets plenty of love. However, investors seeking to load up on tech stocks that want to try something different might want to consider AMD. Fundamentally, the company provides almost-identical relevancies: develop high-powered processors that can undergird the needs of advanced AI protocols.
Given the importance of semiconductors for AI-based solutions, it’s no surprise that AMD ranks among the strong buy tech stocks. In this case, among 31 analysts, 24 rated shares a buy. Of those who are not quite ready to commit to a buy rating, they issued a hold. Still, if time represents any importance, the most recent six ratings are all optimistic. Right now, the average price target lands at $136.36, implying 16% upside potential.
Similar to Advanced Micro’s rival, AMD is pricey, trading hands at over 41x forward earnings. As well, it runs a revenue multiple of 8.28. Still, the company prints a very robust three-year revenue growth rate of 35.7%, outflanking 89% of the competition.
GlobalFoundries (GFS)
A multinational semiconductor contract manufacturing and design company, GlobalFoundries (NASDAQ:GFS) ranks among the most important names for best tech stocks to buy now. While the Covid-19 crisis symbolized a sharp lesson for society, it particularly highlighted economic vulnerabilities. Too much of our tech supply chain depends on Asia. To mitigate this dynamic, GlobalFoundries may help boost domestic semiconductor manufacturing.
To no one’s shock, GFS qualifies as one of the strong buy tech stocks. In fact, at the time of writing, GFS was only one analyst shy of a unanimous buy view. However, an assessment of 13 buys and one hold is a good day at the office. On average, the experts’ price target stands at $76.48, implying nearly 23% upside potential. Also, the high-side target is $100, implying almost 61% growth.
In its totality, GFS appears fairly valued, trading at a trailing earnings ratio of 22.55X and a forward earnings ratio of 28X. Interestingly, the market prices GFS at an enterprise-value-to-EBITDA ratio of 9.63X, favorably lower than 66.22% of the competition. Therefore, it might be one of the best tech stocks to buy now.
On the date of publication, Josh Enomoto 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.
