UBS Says Top Tech Stocks Are Way Oversold and Could Bounce Soon

Here are some of the top tech names tracked by UBS that are now showing up on their screens on an oversold basis.

3D Systems Corp. (NYSE: DDD) makes the list and is probably not a surprise guest either. Its 3D printers convert data input from computer-aided design software format or 3D scanning and sculpting devices to printed parts. 3D printing was a super-hot segment last year, and the top stocks have been absolutely eviscerated in the recent sell-off. The Thomson/First Call price target for the stock is $84.59. The stock closed Thursday at $48.17. A move to the target would be a 75% gain.

Infosys Ltd. (NYSE: INFY) makes the UBS list and reported very positive earnings last week. The stock got hit when forward guidance was less than some of the analysts on Wall Street expected. Quarterly earnings were up 9.0% year over year and 4.9% sequentially. Profits during the quarter were primarily driven by the company’s differentiating strategy to capture potential opportunities and strategic organizational changes. Infosys signed large outsourcing agreements across various sectors, such as energy, communications, financial services, government and health care. Investors are paid a 1.2% dividend. The consensus price target is $59.04. Infosys closed Thursday at $52.88.

Intuit Inc. (NASDAQ: INTU) is a company that loves income tax time as their Turbo Tax product is one of the most widely used. The company is also well-known for the QuickBooks line of accounting software that is used by firms big and small. The stock makes the UBS list, and it has at least reclaimed some of the initial sell-off decline in its shares. Investors are paid a 1% dividend. The consensus price target is $77.29. The stock closed trading Thursday at $74.03.

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Red Hat Inc. (NYSE: RHT) is another high-beta technology name that makes it on to the UBS screens. The company is the world’s leading provider of open source software solutions, using a community-powered approach to reliable and high-performing cloud, Linux, middleware, storage and virtualization technologies. Red Hat also offers support, training and consulting services. The consensus price target is $63.68. Red Hat closed Thursday at $50.55.

Workday Inc. (NYSE: WDAY) has done nothing but go up since its IPO in the fall of 2012. After peaking at more than $116 in late February, the stock got hammered when the biotechs and other momentum names were taken to the woodshed. In fact, the stock is off more than 30% from its high print, and it may be offering investors a very nice entry point. Investors need to remember that Workday is a very high-beta name and can go down sharply on any earnings or guidance disappointment. The consensus price objective for the stock is $106.80. Workday closed Thursday at $79.80.

The UBS technology team regularly screens for the top stocks that have been oversold the most. This recent bout of selling has really taken the air out of some of the top momentum names and provided investors with a high risk tolerance an entry point. Should earnings start to pick up for the big tech names, there could be a strong market rally, and these names would most likely benefit.