Excitement over artificial intelligence (artificial intelligence) will continue to lead the technology sector in 2024. As a result, Nasdaq Composite Index Stock indexes have risen nearly 20% to record highs. This surge confirms the adage that “the best time to plant a tree was 20 years ago. The second best time is now.” This resonates strongly in today's market, making it a good time to buy, especially in hard-hit tech stocks.
Despite investor enthusiasm driving stock prices higher, smart investors can still find opportunities in undervalued tech stocks that could recover quickly. Whether recent stock price declines are due to disappointing earnings or are deemed overvalued, several tech stocks are attractive buys amid overall market optimism. These stocks are often overlooked amid the current market frenzy surrounding leading generative AI companies, but they could have great potential in the long term.
With that in mind, let's take a closer look at three battered tech stocks poised for a strong recovery in the second half of 2024.
Enphase Energy (ENPH)
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Global Energy Technology Company Enphase Energy (Nasdaq:EnfuAs a leading provider of microinverter-based photovoltaic and battery systems, the company is at the heart of the growing solar energy industry.
In 2024, Enphase Energy faced challenges from a slowdown in solar projects amid high interest rates and macroeconomic uncertainty. Its first-quarter 2024 revenue fell more than 60% year-over-year (Year-on-year changeRevenues were $263 million, hitting the low end of guidance. Non-GAAP diluted EPS fell to 35 cents from $1.37 last year, but gross margins improved to 46.2%. The company maintained a strong net cash balance of $1.6 billion against debt of $1.3 billion.
Despite these current headwinds, the International Energy Agency (International Energy Agency) is solar power generation (PVInvestment in renewable energy is expected to exceed $500 billion in 2024, surpassing all other energy sources combined. ENPH is seizing these opportunities by expanding internationally, including with the introduction of IQ.® The company sells its Battery 5P™ in Mexico and Canada, is entering the solar market in Finland and is launching its Solargraf software platform in the Netherlands.
Moreover, ENPH's stock price has fallen by more than 25% since the beginning of the year (YTD). However, the company's shares trade at relatively expensive levels, at 35.5 times expected earnings and 7.7 times sales. Analysts are still optimistic, setting the median 12-month price target at $130.00. Such an upside would represent an upside of more than 30%, highlighting ENPH as a promising company with a good balance of risk and reward.
Fortive (FTV)
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Diversified Industrial Company Fortive (New York Stock Exchange:FTV) specializes in specialized measurement, automation, sensing and transportation technologies. Fortive operates through three segments: Intelligent Operating Solutions, Precision Technologies and Advanced Healthcare Solutions.
In the first quarter of 2024, Fortive's revenue increased 4% year over year to $1.5 billion, but fell short of analyst expectations. Adjusted diluted EPS increased 11% year over year to 83 cents. Encouraged by these results, management raised its full-year 2024 earnings guidance, expecting double-digit growth.
Fortive's revenue streams are diversified, with half coming from differentiated products, approximately a third from investments in electrification and AI, and the remainder from recurring revenue from healthcare consumables and software.
With a focus on growth, Fortive is targeting areas such as software and data analytics to expand its market presence. Investors have noted the strength of Fortive's digital solutions through software as a service and recurring healthcare revenue.Cloud) provided.
Since January, FTV shares have fallen 2%. Currently, Fortive shares are valued at 18.5 times forward earnings and 4.3 times sales. Finally, FTV shares remain attractive to analysts, who see upside potential of 22% and have a median 12-month price target of $88.63.
Intel (INTC)
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Semiconductor companies Intel (Nasdaq:International Trade Commission) is known for designing and manufacturing critical computing components, ranging from processors to data center solutions.
In the first quarter of 2024, Intel posted revenue of $12.7 billion, up 9% year over year, driven by double-digit growth in Intel products. Meanwhile, the foundry division dragged down revenue growth, dropping 10% year over year. Adjusted EPS was 18 cents, compared to a loss of 4 cents last year.
In February, Intel strategically separated its product and foundry divisions to improve competitiveness. The company aims to break even on Intel Foundry by 2030 and become the world's second-largest foundry. The ambitious goal of five nodes in four years (5N4YWith plans in place, many analysts are suggesting that Intel is poised for growth. With the upcoming launch of the 18A Panther Lake CPUs and Microsoft (Nasdaq:MSFT) further strengthens its growth trajectory with investment in AI chips.
Indeed, 2024 has not been a good year for Intel shareholders, as the stock is down 38% year to date. The stock currently trades at 24.3 times expected earnings and 2.4 times sales. Wall Street analysts have a 12-month median price forecast for INTC stock of $36.00, which would represent a 17% upside.
As of the date of publication, Tezcan Gecgil did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com's publication guidelines.
On the date of publication, the editor in charge did not hold (either directly or indirectly) any positions in the securities mentioned in this article.
