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Brokers are High on These Intriguing Tech Stocks is it Still Time to Buy?

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Wall Street is bullish on quite a few lesser-known tech stocks that investors will want to pay attention to. This makes it worth having the conversation of whether now is still a good time to buy with the broader tech-heavy Nasdaq up +33% in 2023.

Considering their average broker recommendation (ABR), here are three of these stocks that stand out in particular.

AMETEK (AME - Free Report)

Seven of the 11 brokers providing data to Zacks on Ametek’s stock have strong buy recommendations. The other 4 ratings are two buys and two holds giving Ametek an attractive ABR of 1.5 on a scale of 1 to 5 (Strong Buy to Strong Sell).

Briefly, Ametek is a meaningful investment as one of the leading manufacturers of electronic appliances and electromechanical devices. Ametek is expected to have steady top and bottom-line growth over the next few years.

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Annual earnings are forecasted to jump 10% this year and rise another 6% in fiscal 2024 to $6.62 per share. More importantly, earnings estimates have remained higher over the last 60 days giving Ametek’s stock a Zack Rank #2 (Buy).

Plus, on the top line, sales are projected to be up 7% in FY23 and rise another 4% in FY24 to $6.91 billion. It’s also noteworthy that the Average Zacks Price Target of $178.11 a share suggests 17% upside for Ametek stock from current levels. Year to date Ametek stock is up a modest +9% with the possibility of a leg higher looking more likely.

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AppLovin (APP - Free Report)

AppLovin’s funky name may catch investors' attention, and the company is shaping up to be a viable investment witnessing stellar growth as analysts remain high on its technology platform that enables developers to publish apps.  

Not as under the radar anymore, AppLovin’s stock has catapulted more than +300% this year. With a Zacks Rank #1 (Strong Buy), AppLovin’s performance continues to impress moving past its Average Zacks Price Target of $40.43 by roughly 1% at the moment after climbing +82% over the last three months alone.

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After such an extensive rally, AppLovin’s stock has only 1 strong sell rating with 11 brokers still strongly recommending APP shares. Including four hold ratings as well, AppLovin’s 1.75 ABR is still intriguing.

Also, as we can see from the EPS surprise chart above, AppLovin’s stock has continued to soar in previous quarters based on the company’s guidance even when missing earnings expectations. Fast forward to its most recent Q2 results in August and the company has delivered.

Last month, second-quarter earnings of $0.22 per share beat estimates of $0.08 a share by 175%. This was also an impressive climb swing from an adjusted loss of -$0.06 a share in the prior-year quarter. Furthermore, Q2 sales of $750.17 million beat expectations by 4% despite dipping -3% YoY.

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Still, the excitement for the company’s rapid growth looks likely to continue. AppLovin’s earnings are expected to skyrocket 350% this quarter to $0.27 per share compared to $0.06 a share in Q3 2022. Plus, Q3 sales are forecasted to be up 11% to $793 million. More importantly, earnings estimate revisions have soared in the last two months.

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Bentley Systems (BSY - Free Report)

Lastly, Bentley Systems is another under-the-radar tech stock that has a favorable 1.82 ABR. Six brokers currently have a strong buy rating on Bentley Systems' stock with one buy rating and the other four a hold. 

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Bentley Systems has a unique niche among the Zacks Internet-Software Industry as a provider of infrastructure software for engineers, architects, and constructors among others. Expecting solid growth, Bentley Systems stock has soared +34% YTD.

Total sales are projected to jump 12% in FY23 and leap another 9% in FY24 to $1.35 billion. Earnings are anticipated to rise 5% this year and jump another 9% in FY24 at $0.98 a share. Annual earnings estimates have remained higher landing Bentley Systems stock a Zacks Rank #2 (Buy) and its Average Zacks Price Target of $56.20 a share suggests 15% upside. 

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Bottom Line

Ametek, AppLovin, and Bentley Systems are expanding at attractive rates. There is no wonder why brokers are high on these tech companies and in agreeance with the Zacks Rank that they are top-rated stocks for investors to consider at the moment.


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AMETEK, Inc. (AME) - free report >>

AppLovin Corporation (APP) - free report >>

Bentley Systems, Incorporated (BSY) - free report >>

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