5 Tech Laggards With Plenty of Upside Potential

By Trey Thoelcke Published Aug 21, 11:35AM EDT

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5 Tech Laggards With Plenty of Upside Potential — © kanawatvector / Getty Images

With the markets setting all-time highs again and the third quarter about to begin winding down, investors may be pondering how to position themselves ahead of the coming election and through the rest of the year. One sector that has been on a tear through the pandemic-induced bear market has been technology, and many of the tech giants are starting to look overbought.

Here are five notable tech laggards that appear to have plenty of upside potential, based on the consensus price targets from analysts, and may be worth a closer look.

FLIR Systems Inc.’s (NASDAQ: FLIR) shares are trading around 32% lower than at the start of the year, though they are up almost 13% since the low seen back in March. This thermal imaging systems maker recently posted better than expected second-quarter results. But its shares retreated 6% or so in the past week, so the $46.89 consensus price objective now implies more than 30% upside potential. The 52-week trading range is $23.85 to $59.44.

Hewlett Packard Enterprise Co. (NYSE: HPE | HPE Price Prediction) is up more than 17% since the market-panic low back in March, but it is down around 42% year to date. The company boosted its cloud solutions with the recent acquisition of Silver Peak. The $10.97 consensus price target suggests 18% or so from the current share price. The stock has traded above $9 in the past week, but it has a 52-week range of $7.43 to $17.59.

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NetApp Inc. (NASDAQ: NTAP) shares have gained almost 15% since the year-to-date low, but the Nasdaq is up more than 53% in that time. This software company also has expanded its reach into the cloud with an acquisition. The stock has around 14% upside, if the analysts’ mean price target of $47.33 proves to be accurate. Shares have traded between $40 and $42 apiece in the past week, but they have traded as high as $65.38 in the past year.

Nutanix Inc. (NASDAQ: NTNX) stock traded about 31% higher at the beginning of the year than it does now. The Nasdaq is up more than 25% year to date. This cloud company is believed to be a takeover target, and it announced a collaboration with Intel this week. The $28.87 consensus analyst target is less than the 52-week high of $37.86, but it suggests there may be more than 38% upside. Shares have traded mostly above $21 in the past week.

Western Digital Corp. (NASDAQ: WDC) is down more than 45% since the beginning of the year, though it is 17% or so higher than 52-week low seen in March. BofA Securities likes the stock for its dependable dividend. It has a consensus price target of $51.49, implying upside of more than 50%. Shares retreated from about $36 apiece to less than $34 in the past week. The 52-week range is $27.40 to $72.00.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.