With fears from an ascending 10-year Treasury Yield starting to calm, markets have stabilized as Nvidia’s NVDA much anticipated Q2 earnings approached.
Opening on a higher note Monday, the Nasdaq was up over 1% again today and a rebound appears to be building after weeks of volatility.
The opportunity to buy several tech stocks that cooled off and had healthy corrections may be upon us and here are a few to consider.
ePlus PLUS: Not just another speculative high-growth tech stock, ePlus offers some nice value to investors at its current levels.
ePlus is also benefiting from increased e-infrastructure spending throughout the economy as a provider of IT infrastructure and supply chain processes. Earlier in the month, ePlus crushed its fiscal first-quarter earnings expectation by 42% with EPS at $1.41 per share compared to estimates of $0.99 a share.
Following the strong Q1 results, ePlus’ stock spiked to a new 52-week high of $75.90 a share before cooling off in recent weeks and currently trading at around $64 a share.
ePlus stock is still up +38% this year and now could be a buy-the-dip opportunity with earnings expected to be up 5% in its current fiscal 2024 and rise another 8% in FY25 to $5.72 per share.
More intriguing, ePlus stock trades at just 11.7X forward earnings which is a very attractive discount to its industry average of 32.3X and the S&P 500’s 20.5X. It’s also noteworthy that ePlus stock trades 49% below its decade-long high of 23.4X and at a 25% discount to the median of 15.8X.
Uber Technologies UBER: The probability of Uber is finally here helping to justify investing in the ride-hailing company for its immense earnings potential.
The road to profitability has been bumpier than competitor Lyft LYFT but Uber’s earnings potential is more lucrative. Unlike Lyft, Uber has a more global reach along with the implementation of food delivery service in its operations.
Intriguingly, Uber’s earnings are forecasted in the black this year at $0.41 per share compared to an adjusted loss of -$4.65 a share in 2022. More impressive, fiscal 2024 earnings are projected to soar another 161% to $1.08 per share.
This growth has lead to much excitement as Uber has worked to lower its operating costs. In correlation, Uber stock has skyrocketed 82% YTD to largely outperform LYFT and the broader indexes. The recent pullback may have been a healthy correction after Uber stock hit 52-week highs of $49.49 a share in late July.
DocuSign DOCU: Lastly, there appears to be an opportunity in DocuSign’s stock which has been overlooked in 2023 and is now down -13%. Still, DocuSign’s business is here to stay as there should be a constant need for its cloud services which digitalize the signing and agreement process.
Steady bottom line expansion is expected with earnings forecasted to jump 23% in DocuSign’s current fiscal 2024 at $2.51 per share versus EPS of $2.03 a share in FY23. Plus, FY25 earnings are projected to rise another 2%.
DocuSign stock may have hit oversold territory over the last few weeks at $48 a share and still 31% from its 52-week highs of $69.45 a share last February.
Takeaway
It’s noteworthy that ePlus, Uber, and DocuSign are expecting expansive top-line growth as well but their stocks have become more compelling with a strengthening earnings outlook.
Reassuringly, this helps reconfirm the excitement most investors have surrounding the expansion capabilities of growing tech companies. At the moment, ePlus, Uber, and DocuSign stock all sport a Zacks Rank #1 (Strong Buy).
ePlus inc. (PLUS): Free Stock Analysis Report
DocuSign (DOCU): Free Stock Analysis Report
Uber Technologies, Inc. (UBER): Free Stock Analysis Report
NVIDIA Corporation (NVDA): Free Stock Analysis Report
Lyft, Inc. (LYFT): Free Stock Analysis Report
To read this article on Zacks.com click here.
This article originally appeared on Zacks
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
