Latest news with #techsector
Yahoo
19 hours ago
- Business
- Yahoo
Have $1,000? These 2 Stocks Could Be Bargain Buys for 2025 and Beyond.
Reasonably valued growth stocks are still available in the high-octane tech sector. Advanced Micro Devices' growth prospects in the chip industry appear undervalued, with the stock trading at just 22 times 2026 earnings estimates. Dell shares trade at just 12 times forward earnings despite a growing backlog of orders for its AI servers. 10 stocks we like better than Advanced Micro Devices › Investors who are looking for stocks that could explode over the next few years should look for companies offering a balance of growth and value. There are attractive deals in the tech sector right now, particularly companies that are supplying mission-critical hardware for artificial intelligence (AI) infrastructure. If you have $1,000 you can tuck away in the market for at least five years, the following tech stocks trade at reasonable price-to-earnings (P/E) multiples that could support attractive shareholder returns. Shares of Advanced Micro Devices (NASDAQ: AMD) have soared 76% since hitting a 52-week low in April. The stock's gains are supported by strong demand for its graphics processing units (GPUs) used in data centers, as well as market share gains against Intel with its range of central processing units (CPUs) for servers and consumer PCs. The stock still has room to run in the near term. In the first quarter, AMD reported a year-over-year revenue increase of 36%, with adjusted earnings per share (EPS) surging 55%. Yet the stock is trading at a forward price-to-earnings (P/E) multiple of just 35 based on this year's consensus earnings estimate from Wall Street analysts. Using 2026 earnings estimates, the stock's earnings multiple drops further to 24, indicating that AMD's future growth could be significantly undervalued by investors. AMD expects to gain share this year with its EPYC server and Ryzen consumer CPUs. It also expects to gain share in the GPU market with strong demand for its Radeon graphics chips used for playing video games and its upcoming Instinct MI350 series accelerators for data centers. AMD is seeing such strong momentum in its business that management doesn't see near-term macroeconomic headwinds from tariffs or anything else impacting its outlook. Analysts expect AMD to report revenue growth of 23% for the full year. Looking ahead to 2028, Wall Street analysts expect AMD's earnings to reach $10.49. If the stock is trading at a P/E multiple of 30, that puts the stock at over $300, or more than double its recent share price. Shares of Dell Technologies (NYSE: DELL) are also on the move following the recent sell-off with the broader market during the first quarter. Dell's server business is cooking right now, which should gradually take the spotlight off its struggles in the PC market and send the stock higher over the next few years. Dell's revenue is roughly split between its infrastructure solutions (servers) and client solutions (PCs and peripherals), with total revenue up 5% year over year in Q1. Dell's infrastructure business is experiencing strong demand, with the company expecting to ship $7 billion worth of AI servers in Q2. This is a massive jump over the $1.8 billion shipped in Q1. It's a strong signal for Dell's growth trajectory that it is seeing surging demand across multiple industries. Dell noted new enterprise AI customers from web technology, financial services, education, entertainment, and manufacturing. As the leader in servers, this is pointing to a tremendous opportunity. The stock offers great value ahead of these attractive growth prospects. Despite Dell reporting a 17% year-over-year increase in earnings last quarter, largely due to improving margins in the infrastructure business, the stock is trading at a forward P/E of just 13. The opportunity in servers should fuel double-digit growth in earnings over the next few years. It's only a matter of time before Wall Street sees the value in Dell's stock and bids it up to a higher earnings multiple, further compounding the upside for investors. Assuming Dell meets the consensus earnings estimate of $11.77 in 2028 and the stock trades at 20 times earnings, that puts the stock at $235, representing a doubling of its recent share price. Before you buy stock in Advanced Micro Devices, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Advanced Micro Devices wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $687,731!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $945,846!* Now, it's worth noting Stock Advisor's total average return is 818% — a market-crushing outperformance compared to 175% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 23, 2025 John Ballard has positions in Advanced Micro Devices. The Motley Fool has positions in and recommends Advanced Micro Devices and Intel. The Motley Fool recommends the following options: short August 2025 $24 calls on Intel. The Motley Fool has a disclosure policy. Have $1,000? These 2 Stocks Could Be Bargain Buys for 2025 and Beyond. was originally published by The Motley Fool
Globe and Mail
3 days ago
- Business
- Globe and Mail
Bull of the Day: AppLovin (APP)
AppLovin ( APP ), a leading ad-tech platform powering mobile app monetization and user acquisition, has emerged as one of the most explosive growth stories in the tech sector over the past few years. Fueled by surging demand for performance-based advertising and advanced machine learning capabilities, the company has carved out a highly profitable position in a rapidly growing industry. The stock has delivered a staggering return of over 1,300% in just two years, rewarding early believers with outsized gains. And notably, the Zacks Rank was ahead of the curve, as APP held a top Zacks Rank for much of that historic run, flagging strong earnings momentum well before the broader market caught on. Following such a meteoric rise, shares have traded sideways over the past eight months as the valuation cooled and profit-taking set in. But now, with the stock consolidating and fundamentals continuing to strengthen, the setup is once again turning bullish. Earnings growth remains robust, and analysts have issued substantial upward revisions to estimates, indicating strong turn higher in sentiment. With momentum building, AppLovin looks ready for its next leg higher. Can Earnings Upgrades Propel AppLovin Stock Higher Again? Over the past two months, AppLovin has received some of the most significant upward revisions that I have seen in a tech stock. Analysts have raised their forecasts by nearly 30% across timeframes, an unusually sharp and unanimous upgrade that has propelled APP to a Zacks Rank #1 (Strong Buy). What makes these upgrades even more compelling is AppLovin's impressive track record of outperforming expectations. The company has surpassed earnings estimates in each of the last four quarters, with an average surprise of 23%. That history suggests that even after these aggressive revisions, current estimates may still be conservative. Looking ahead, earnings are projected to grow by a remarkable 88.5% in 2025, followed by another strong year of 41.1% growth in 2026. Revenue is also expected to expand at an accelerating pace, rising 16.6% this year and 20.4% next year. With both top- and bottom-line momentum and continued bullish analyst sentiment, AppLovin's next leg higher may already be taking shape. AppLovin Stock Breaks Out from Technical Pattern After experiencing a sharp correction between February and April, AppLovin stock has been quietly forming a classic cup and handle pattern, a bullish technical formation that often precedes significant upward moves. This pattern typically reflects a period of consolidation and accumulation following a strong prior uptrend. On Tuesday, the stock appeared to break out decisively above the handle's upper resistance level, signaling a potential resumption of its broader uptrend. This breakout is another encouraging sign that investor conviction is returning. As long as APP holds above this key breakout level, the technical setup suggests increasing momentum and the potential for continued buying pressure. If the pattern plays out in full, the measured move could imply substantial upside from current levels, reinforcing the bullish case already supported by earnings strength and analyst upgrades. AppLovin Shares Trade at a Premium Valuation AppLovin is not a cheap stock by any stretch. The shares currently trade at 40.6x forward earnings, which is above the industry average, but notably still below the company's three-year median valuation of 49.3x. This elevated multiple reflects the market's recognition of AppLovin's robust earnings growth, strong cash flow, and dominant position within the ad-tech ecosystem. While the valuation may give pause to traditional value investors, it remains within a reasonable range for high-growth, high-momentum tech names. For active traders and investors who focus on growth and momentum strategies, AppLovin's premium multiple may be justified by its consistent earnings beats, accelerating revenue growth, and recent bullish breakout on the charts. In this context, the stock's valuation, though rich, is not absurd, especially if the company continues to deliver on its aggressive growth trajectory. Should Investors Buy Shares in APP? With strong earnings momentum, bullish estimate revisions, and a breakout from a bullish technical pattern, AppLovin is showing all the right signals for a potential move higher. While the stock trades at a premium, its growth outlook and execution may justify the valuation. For investors focused on momentum and growth, AppLovin looks like a timely opportunity to ride the next leg of its rally. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up AppLovin Corporation (APP): Free Stock Analysis Report
Yahoo
3 days ago
- Business
- Yahoo
Stock rally stalls, tech dominance, Fed focus: Market Takeaways
Yahoo Finance Senior Reporter Allie Canal joins Asking for a Trend with Josh Lipton to go over the top takeaways from the trading day: the stalling of the stock rally, the return of tech sector outperformance, and current investor focus on the Federal Reserve's future rate cuts. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Stock rally stalls, tech dominance, Fed focus: Market Takeaways
Yahoo Finance Senior Reporter Allie Canal joins Asking for a Trend with Josh Lipton to go over the top takeaways from the trading day: the stalling of the stock rally, the return of tech sector outperformance, and current investor focus on the Federal Reserve's future rate cuts. To watch more expert insights and analysis on the latest market action, check out more Asking for a Trend here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
4 days ago
- Business
- Bloomberg
Need to Focus on Fundamentals: Sundar
Sitara Sundar, Head of Alternative Investment Strategy at JPMorgan Private Bank, says while earnings growth will decelerate, she expects it to be in the mid-single to high-single digits. She also expects breadth to broaden and the tech sector to lead the way forward. She speaks to Bloomberg's Dani Burger on 'Bloomberg Brief.' (Source: Bloomberg)
