There are a few intriguing tech stocks that are selling off today after reporting earnings and investors along with traders may want to take notice.

Let’s take a look at three tech stocks that could start presenting better buying opportunities after this morning’s selloff.

Allegro MicroSystems (ALGM): Traders and investors alike have been lingering for opportunities to buy chip stocks after this year’s massive rebound in the semiconductor space.

Allegro MicroSystems may be presenting that opportunity as a legit option among chip stocks with the company providing sensor integrated circuits and application-specific analog power ICs to the automotive and industrial markets.

Shares of ALGM are still up over +50% this year but down -11% today despite Allegro beating its fiscal first quarter top and bottom line expectations. There appears to be some profit-taking in regards to today’s selloff as Allegro topped its Q1 earnings expectations by 5% with EPS at $0.39 compared to estimates of $0.37 a share.

Quarterly sales of $278.29 million surpassed estimates by 1%. Even better, Q1 earnings and sales soared 54% and 28% from the prior year quarter respectively. At the moment Allegro stock has a Zacks Rank #3 (Hold) and today’s dip could end up being a healthy correction as the operating environment strengthens for most semiconductor companies and sentiment remains high.

Harmonic (HLIT): Today’s selloff in Harmonic stock is certainly intriguing with shares now trading around $11 after falling -21% this morning.

Of course, price alone is not a reason to buy a stock but Harmonic’s valuation may be very reasonable after the pullback and the company should remain a viable tech investment as a provider of video delivery software to media companies and service providers.

The pullback comes after Harmonic’s Q2 results came short of expectations after market hours on Thursday. Harmonic slightly missed its second-quarter earnings expectations with EPS at $0.12 compared to estimates of $0.13 a share. Earnings were down -25% from Q2 2022 with quarterly sales of $155.86 million coming up -6% short of estimates and dipped-1% from a year ago.

Still, many analysts remain high on Harmonic’s stock even as lofty price targets get lowered. To that point, the current Average Zacks Price Target of $20.83 a share represents 34% upside from current levels with Harmonic stock landing a Zacks Rank #3 (Hold).

ZoomInfo Technologies (ZI): Intriguingly, ZoomInfo Technologies stock may be hitting oversold territory after the company beat Q2 earnings expectations after hours on Thursday but came up short on the top line.

ZoomInfo’s stock opened much lower today and has now dropped -25% during the trading session. With that being said, the selloff could end up being a buying opportunity as ZoomInfo is still a growing player among cloud-based providers with its platform offering information and insights on organizations and professionals principally in the U.S. and internationally.

Second-quarter earnings of $0.26 a share topped estimates by 13% and climbed 24% YoY. However, ZoomInfo’s Q2 sales of $308.60 million slightly missed top-line expectations of $310.33 million despite rising 15% from a year ago. The catalyst for today’s selloff was attributed to ZoomInfo slashing its FY23 revenue guidance from $1.27-1.28 billion to $1.22-1.23 billion.

There are short-term concerns over the demand for ZoomInfo’s niche among cloud services but with the stock hitting all-time lows today the risk to reward could become favorable for investors. At the moment ZoomInfo stock also lands a Zacks Rank #3 (Hold) and it’s noteworthy that the company has now beaten earnings expectations for 10 consecutive quarters.

Bottom Line

Given earnings estimates don’t drastically decline these tech stocks could make the case for being oversold after today’s selloff. There could certainly be short-term opportunities for traders and longer-term opportunities for investors in regard to Allegro MicroSystems, Harmonic, and ZoomInfo stock.

Harmonic Inc. (HLIT): Free Stock Analysis Report

ZoomInfo Technologies Inc. (ZI): Free Stock Analysis Report

Allegro MicroSystems, Inc. (ALGM): Free Stock Analysis Report

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