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The 3 Most Undervalued Tech Stocks to Buy in July 2024

Undervalued Tech Stocks – The 3 Most Undervalued Tech Stocks to Buy in July 2024

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Many of the best-performing stocks come from the technology sector. Few industries offer the same opportunities for growth and scale as technology companies. Every publicly traded trillion-dollar company is a tech giant, and the next trillion-dollar companies will likely be in the technology sector as well.

Tech also makes up a large part of the S&P500 and that Nasdaq. When technology stocks fall, the entire market will feel the impact. Fortunately, most technology stocks have increased in value over the long term, including the stocks covered in this article.

It’s still possible to find undervalued tech stocks, especially if you look at each asset from a long-term perspective. Anything can happen in a year, as macroeconomic factors, earnings reports, and other short-term events can affect stock prices. However, these companies look like they could deliver solid earnings and dividends over the next decade. Investors should take a closer look at these undervalued tech stocks.

Meta-platforms (META)

In this photo illustration, the Meta logo is seen on a smartphone and the Facebook logo in the background

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Meta-platforms (NASDAQ:META) aims to become one of the world’s leading AI giants. Thanks to its healthy cash reserves and strong financials, the company has plenty of capital to invest. The advertising giant reported 27% year-on-year (YOY) revenue growth in the first quarter and net profit more than doubled.

Meta Platforms’ “year of efficiency” has done wonders for its stock price. Shares are up 51% year-to-date and have gained 159% over the past five years. The company’s 3.24 billion daily active users and millions of advertisers suggest that revenue will continue to flow into the company’s coffers.

The stock trades at a P/E ratio of 30.7, which seems reasonable considering the company’s incredible net income growth. Meta Platforms also offers a yield of 0.38% and is likely to have a double-digit dividend growth rate for several years. Wall Street analysts are bullish on the stock and have given it a consensus rating of Strong Buy.

Qualcomm (QCOM)

Qualcomm (QCOM) logo on an outdoor sign

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Qualcomm (NASDAQ:QCOM) is another Wall Street favorite that is currently rated as a Moderate Buy. The highest price target of $270 per share means the stock can gain another 30% from current levels.

The chipmaker benefits from AI and has delivered a 46% gain to investors year-to-date. Shares are up 176% over the past five years. Qualcomm also offers a 1.64% yield and trades at a P/E ratio of 28. The tech giant has had a high single-digit dividend growth rate for several years, including this year’s 6.3% dividend increase.

Qualcomm delivered 1% YoY revenue growth in Q2 of fiscal 2024, suggesting the company’s headwinds are behind it. Net income rose 37% YoY in the same quarter. Rising demand for artificial intelligence could drive revenue growth in the coming quarters. Qualcomm is a relatively undervalued AI chip stock that offers more upside for long-term investors.

Alphabet (GOOG, GOOGL)

Alphabet (GOOGL) – Quantum computer stocks to buyAlphabet (GOOGL) – Quantum computer stocks to buy

alphabet (NASDAQ:GOOG:GOOGLE) generates the majority of its revenue from online advertising. Google and YouTube are two of the most popular sites and attract a steady stream of visitors and advertisers. However, the company is diversifying its revenue, with Google Cloud now accounting for more than 10% of the company’s revenue.

Total revenue rose 15% year-on-year in the first quarter, while net profit rose 57%. The tech giant has been cutting costs and is likely to post higher profit margins in the coming quarters.

Alphabet stock has provided solid returns for long-term investors. Shares are up 36% year-to-date and have gained 232% over the past five years. The stock trades at a P/E ratio of 30 and offers a yield of 0.42%. Wall Street analysts believe the stock can rise even further and have given it a consensus rating of Strong Buy. The highest price target of $225 per share means the stock can gain another 18%.

As of the date of publication, Marc Guberti held a long position in GOOG. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.

At the time of publication, the editor in charge held a long position in GOOG.

Marc Guberti is a freelance financial writer at InvestorPlace.com and hosts the Breakthrough Success Podcast. He has written for several publications including US News & World Report, Benzinga, and Joy Wallet.

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