Technology

UBS Says These Five Top Tech Stocks Are Oversold

One good thing about momentum corrections and sell-offs is they often give investors anxious to own some of the top names a far better entry point. While the market gyrations lately have not been anything close to a true correction, some top names that have run a long way over the past year have backed up nicely. In a new research report, the tech team at UBS focused on five leading names that are way oversold, and may be giving investors an ideal point to buy a position or at least start scaling capital in.

Here are the five to oversold tech stocks at UBS.

Amazon.com Inc. (NASDAQ: AMZN) is a top stock to buy on an oversold basis now. Many Wall Street analysts view Amazon as the innovation leader and a top stock to own for 2014 and beyond. In addition to its online retailing muscle, it has a gigantic cloud storage business that continues to dominate rivals. The company will add even more revenue to the top line with the recent increase in its Amazon Prime memberships. The Thomson First Call price target is $433.45. Amazon closed on Thursday at $338.47.

CA Technologies (NASDAQ: CA) makes the UBS oversold list. The company provides IT management solutions that help customers manage and secure complex IT environments to support agile business services. Organizations leverage CA Technologies software and SaaS solutions to accelerate innovation, transform infrastructure and secure data and identities, from the data center to the cloud. Investors receive a solid 3.2% dividend. The consensus price target is $29. CA closed Thursday at $30.53.

Google Inc. (NASDAQ: GOOG) continues to plow ahead with what seems like a plan to conquer the tech world by having a large swipe of everything. In fact, reports say that the tech giant was prepared to even outbid Facebook in its gigantic $19 billion purchase of WhatsApp, which rocked the technology landscape last month. While it obviously did not, Google is continuing to be the leader in everything from paid search to the Android operating system. The consensus price target for the technology colossus is $1324.63. Google closed Thursday at $1114.28.

Infosys Ltd. (NYSE: INFY) is a global leader in consulting, technology and outsourcing solutions. It enables clients in more than 30 countries to stay a step ahead of emerging business trends and outperform the competition. The company also helps clients transform its businesses and opportunities and thrive in a changing world by co-creating breakthrough solutions that combine strategic insights and execution excellence. UBS says this stock has been dramatically sold off in the past two weeks. Shareholders are paid a 1.2% dividend. The consensus price target is $60.10. Infosys closed Thursday at $53.60.

Salesforce.com Inc. (NYSE: CRM) has remained a hot name on Wall Street for the past few years, but it has taken its fair share of selling over the past month. The company realized before everyone else that corporations may not have invested in hardware and other big-ticket enterprise systems, but they have certainly placed a priority on customer relationship management. With its expertise in the cloud to manage various business functions like sales, marketing and big data analysis, Salesforce figured out how to service these needs at a fraction of the cost. The consensus price target is $70.47. Shares closed Thursday at $55.97.

While the investing oceans are anything but calm, all these top oversold names are dominate in their respective sectors. While full-blown stock buys here may not be advisable, investors wanting to add these market leaders to their portfolios may want to start scaling in or buying a partial position, and wait to see what the first-quarter earnings season will bring next month.

 

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