The tech sector remains a driving force in the global economy, consistently pushing boundaries and shaping the future. So far, in 2024, the sector has experienced a rollercoaster ride. While some companies soared to new highs earlier in the year, recent weeks have witnessed a period of consolidation and correction. The most recent panic selling in early August has created a unique environment for many investors. These market fluctuations present compelling buying opportunities, especially among tech stocks.
Understandably, we must ask which tech stocks are best positioned to capitalize on a potential next bull market. This August edition highlights three compelling tech stocks that could become winners in the next bull market. The current landscape, characterized by risks and rewards, is ripe for strategic investment.
Here are three tech stocks to buy now for the next bull market.
Genpact (G)
We start today’s discussion with Genpact (NYSE:G), a stock to consider for the next bull market. The professional services firm offers business and technology services and serves diverse industries such as banking, healthcare and consumer goods in more than 30 countries.
In its first quarter 2024 earnings report, Genpact announced revenues of $1.13 billion, a 4% increase from last year. Diluted adjusted EPS rose 7% year-over-year (YOY) to $0.73. This strong performance stems from the company’s new “3+1 Execution Framework,” which aims to strengthen partnerships and enhance operational efficiency through artificial intelligence (AI). We should note that Genpact will release its second quarter results on August 8.
Recently, Genpact partnered with ALDI SÜD to enhance digital transformation in ALDI’s U.S. and Australian operations. This long-term partnership ensures Genpact’s revenue stability and validates its strategic direction. The company is also expanding its alliance with Advantage Solutions (NASDAQ:ADV) to tackle finance and supply chain issues. Additionally, it has teamed up with Volkswagen Financial Services (VWFS) to improve customer experiences in automotive finance using AI solutions.
Shares have declined nearly 7% year-to-date (YTD). Currently, Genpact offers a 1.9% dividend yield. Meanwhile, shares are trading at 18.3 times forward earnings and 1.3 times sales. Analysts predict a 12-month median price target of $38 for G stock, suggesting an upside potential of more than 17%.
Qorvo (QRVO)
Next on our list of top tech stocks is the semiconductor company Qorvo (NASDAQ:QRVO). On July 30, Qorvo reported impressive first quarter fiscal year 2025 earnings. Revenue increased 36% year over year to $887 million.
Investors noted that the company has implemented cost and productivity initiatives to enhance gross margins. As a result, net income and diluted EPS surged nearly 150% year over year, reaching $83.5 million and 87 cents, respectively.
For the second quarter of FY2025, Qorvo forecasts diluted EPS between $1.75 and $1.95. Meanwhile, management is taking a conservative approach to AI but expects notable design wins to ramp up mid-quarter. Recently, Qorvo has announced an innovative chip that simplifies network upgrades. It has also extended its leadership in RF multi-chip modules for advanced radar applications.
Since January, QRVO stock has dropped more than 8% and is currently trading at 16.2 times forward earnings and 2.5 times sales. Analysts have set a 12-month median price forecast of $125, indicating a potential 21% upside from current levels. As the semiconductor industry continues to gain momentum in the quarters ahead, Qorvo’s exposure to key markets and innovative solutions make it a must-have for the next bull market.
Trimble (TRMB)
Rounding out today’s list of top tech stocks is Trimble (NASDAQ:TRMB), which provides advanced positioning solutions and related software and services. For instance, Trimble offers products and services for geospatial professionals and those operating in industries such as agriculture, construction, logistics and utilities. Trimble operates in four main areas: buildings and infrastructure, geospatial, resources and utilities and transportation.
On August 6, Trimble reported its second quarter 2024 results. Revenue was $870.8 million, down 12% year over year but up 1% organically. Annualized recurring revenue (ARR) reached a record $2.11 billion, up 12% year over year. Adjusted diluted EPS was 62 cents, compared to 64 cents in the prior year quarter. The company raised its full-year guidance following closing a joint venture with AGCO (NYSE:AGCO).
In May, Trimble acquired Flashtract, a technology provider that streamlines payment processes in construction. This acquisition enhances Trimble’s Construction One platform by incorporating Flashtract’s technology, now called Trimble Pay. Trimble also announced a new asset lifecycle management software suite to improve capital project management. Additionally, it extended its partnership with Esri for geographic information system (GIS) software and mapping.
So far in the year, TRMB shares have declined 3%, while the stock is trading at 18.2 times forward earnings and 3.2 times sales. Yet, Wall Street remains optimistic, projecting nearly 38% potential upside with a 12-month median price target of $71.
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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
