A rocky road has been paved for tech stocks once 2022 rolled around. Fears of pandemic recovery, inflation, and higher interest rates all translated into a free fall of most of the high-flying tech stocks. To top it all off the global supply chain has been put under strain due to the Russian invasion of Ukraine.
Sure, some stocks were unjustly overvalued, but there are also other stocks that have been unjustly punished by the shift in market sentiment. The following are three stocks that merit a second look based on a long-term value approach to investing.
1. Meta Platforms Inc. (NASDAQ: FB)
It seems if no other technology sector is as interesting as the metaverse at the moment with all spotlights shining brightly on it. Betting on the virtual world being the next frontier of social interactions, Facebook changed its name to Meta Platforms Inc. going all-in on the countless opportunities for business and commerce they see in this new digital world. Earlier this year Finbold reported on the trademark applications Meta filed.
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Leveraging its leadership in the social space and high revenue, Meta seems to be poised for long-term growth and dominance of this sector. The chart shows the stock in a slump recently with the tech sell-off, however it has moved above the 20 Simple Moving Average (SMA), presenting a solid entry position.
Wall Street analysts have the stock as a ‘Moderate Buy’ with only one analyst deeming it as a ‘Sell’. The average price target is $325.10 which represents a runway of 46.56% to the upside. Currently, the stock trades $222 with the highest price that the analysts see sitting comfortably at $466.
2. The Trade Desk (NASDAQ: TTD)
Why hold onto a stock that is down 27% year to date (YTD)? Because the company deals with the cutting edge in advertising technology i.e. programmatic advertising. This technology employs algorithms on high-speed computers that automate the ad-buying process.
Currently, Apple Inc. (NASDAQ: AAPL) and Alphabet Inc. (NASDAQ: GOOGL) are phasing out traditional cookies while Trade Desk will target ads while protecting consumers’ identities. The company partners with the world’s biggest advertising agencies instead of competing with them.
Charts show a recent sell-off in the stock with current trading trends bouncing off of the lows and staying below 20-50-200 SMAs. For those not yet in the stock, this could be a good buying opportunity.
Analysts have a Strong Buy on the stock with almost all analysts being in consensus. The average price is $102.22 representing a 56.18% upside from the most recent trading price of the stock of $65.38. The highest price analysts have for the stock is $120.
3. Apple (NASDAQ: AAPL)
Major stock indices weigh their components by size, while Apple’s market capitalization stands at $2.6 trillion it is by far the most affected stock by market sentiments. When ETFs are sold off by investors Apple disproportionally gets punished by the sheer fact that its dominance in market-cap-weighted funds.
Finbold recently reported on new developments and predictions regarding Apple which shines a new light on the stock and its long-term potential. Charts show the stock moving above the 20-50-200 SMAs and is currently the best performer YTD out of the three stocks here.
Analysts also have a sweet spot for Apple recommending it as a Strong Buy with an average price of $193.36 a potential increase of 10.67% from the most recent price of $174.72.
All in all, technology stocks represent an area in the market that is always forward-looking and that usually brings a lot of value to their users. Leaders in the field are shifting their paradigms by innovating, focusing on ways of social interaction, or simply offering the best products following more sustainable production practices.
Investors should look to innovators and leaders in the field, realize the long-term potential, never waiver from their strategy of investing and stay in high-quality stocks regardless of Mr. Market’s mood swings.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
