The Nasdaq 100 surprised many investors in 2023 with a strong rally. The index is up by roughly 45% year-to-date as the Magnificent Seven continue to surge higher. The Nasdaq 100 is only a few percentage points away from the all-time high it set in November 2021. This has led to tech stock bargains.
While the dramatic reversal has rewarded many long-term investors, some tech stocks remain down for the year. Some stocks have rightfully taken a beating in 2023 despite widespread investor enthusiasm. However, some stocks have faced losses that seem harsh compared to their peers.
Some investors look for buy-the-dip opportunities to scoop up extra shares of companies that have received a little less love in the stock market. These three tech stock margins look like opportunities worth exploring.
Alteryx (AYX)
Alteryx (NASDAQ:AYX) has been all over the map as a tech growth stock. Shares tripled from August 2018 to August 2019 but are down by 9% over the past five years. AYX shares have also shed over 20% of their value since the start of the year.
Alteryx is a big data software company with over 8,000 global customers and over 300,000 members in the active community. Many data scientists use this resource, and revenue growth implies the company is gaining market share. This helps make it one of those tech stock bargains.
In the first quarter, Alteryx reported 26% year-over-year revenue growth. The company’s Q1 net loss was only -$89 million compared to a net loss of -$105.6 million, marking a 15.7% year-over-year improvement. Revenue growth was even more impressive in the previous quarters. The two prior quarters each featured revenue growth above 70% year-over-year.
The net loss may intimidate some investors, but stocks have been shooting upward despite higher losses and lower year-over-year revenue growth. The stock market seems to be in a euphoric state at the moment, with the markets approaching all-time highs last seen during a near-zero interest rate environment.
Q2 guidance was poor, with the company only expecting 0%-2% year-over-year revenue growth. However, the Full Year guidance painted a more optimistic picture of 15% to 16% year-over-year revenue growth.
While Alteryx isn’t the most captivating company on the market, it’s shocking that the company didn’t enjoy a similar ride as other tech stocks. Strong top-line revenue growth and minimizing losses seem to be the criteria for rising investments over the past few months. Alteryx has had both of those factors working in its favor.
Gen Digital (GEN)
Gen Digital (NASDAQ:GEN) shares are down by roughly 10% year-to-date. The company has achieved 30%+ year-over-year revenue growth in the two previous quarters and has a PEG ratio under 1.
The company creates digital software that enhances cybersecurity, online privacy, and identity protection. Gen Digital has over 500 million users in more than 150 countries using its software. Gen Digital’s key software includes Norton, Avast, Avira, and AVG.
Revenue continues to grow for the company, as it recently reported its 4th consecutive year of organic growth. Bookings exceeded $1 billion for the first time in Fiscal Q4.
The stock offers a 2.50% dividend yield while investors wait for shares to regain momentum., but it may not take long for shares to move. Investors have been catching onto the company’s unjustified drop. Shares have rallied by over 25% since the May 2023 low.
EPAM Systems (EPAM)
EPAM Systems (NASDAQ:EPAM) is a software company that serves over 280 Forbes Global 2,000 Customers. The company offers services in cybersecurity, strategy implementation, data analytics, cloud, engineering, and more. EPAM Systems has partnered with several companies, such as Alphabet (NASDAQ:GOOG,GOOGL) and Microsoft (NASDAQ:MSFT).
EPAM shares are down by roughly 30% year-to-date but have gained more than 80% over the past five years. Double-digit profit margins and revenue growth can help the company’s P/E ratio get lower in the future. That ratio currently stands at 32.
EPAM Systems shares exceeded $700 in November 2021. A return to that all-time high over several years can be rewarding for long-term investors. The company is in multiple high-growth industries and remains profitable. All in all, EPAM stock is one of those tech stock bargains to buy.
The stock has been on an upward trend since the start of June, gaining more than 10% ever since. EPAM Systems’ $500 million stock buyback authorization is one of several factors that can fuel more gains.
On this date of publication, Marc Guberti 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.
