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3 Top-Ranked Beaten-Down Tech Stocks to Buy for Long-Term Upside
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Today’s episode of Full Court Finance at Zacks explores where the stock market stands in the early days of the fourth quarter. The episode then dives into three Zacks Rank #1 (Strong Buy) technology stocks—Uber, Pinterest, and Wix.com—that investors might want to consider buying for longer-term growth upside.
The bulls held their ground at the pivotal 200-day moving average on Wednesday on signs that the labor market was cooling. The market then closed slightly lower on Thursday, as Wall Street remained mostly hands-off ahead of September nonfarm payroll data on Friday.
If the jobs data is cool and the early part of third quarter earnings season—which unofficially kicks off on October 13—showcases ongoing strength, the market could be headed for a solid stretch after a dreadful September.
Image Source: Zacks Investment Research
The S&P 500 remains at its most oversold RSI levels since the market bottomed around this time last year.
More importantly, the Fed remains near the end of its hiking efforts, barring a massive uptick in inflation. The outlook for earnings also looks flat-out impressive (read here for more on S&P 500 earnings growth).
Uber ((UBER - Free Report) ) is proving it can become profitable and post impressive growth at the same time. The ride-hailing and delivery titan reported a GAAP operating profit for the first time in its history last quarter. Zacks estimates call for it to swing from an adjusted loss of -$4.65 a share last year to +$0.42 in FY23 and then post roughly 160% adjusted earnings expansion in 2024.
Uber’s upbeat earnings outlook has it at a Zacks Rank #1 (Strong Buy) right now. Meanwhile, Zacks estimates call for Uber’s revenue to climb by over 17% in 2023 and another 18% in FY24.
Image Source: Zacks Investment Research
Uber is focused on expanding its core business segments, while still preparing for an autonomous vehicle future. Shares have soared 80% YTD, yet they still trade 30% below their average Zacks price target.
Uber is currently trying to retake its 50-day moving average, after pulling back from its late-July highs. Uber trades at a 65% discount to its own highs at 2.2X forward sales and 40% below the Zacks tech sector. And 27 of the 33 brokerage recommendations Zacks has are “Strong Buys.”
Pinterest ((PINS - Free Report) ) stands out among Meta, Snap, and others since its social media-style platform is essentially a digital vision board. Pinterest, in its own words, is a “visual discovery engine for finding ideas like recipes, home and style inspiration, and more.” PINS is a hit with its users, as well as advertisers, small businesses, entrepreneurs, and others because paid content and ads fit seamlessly into the Pinterest platform.
Pinterest has focused on boosting its e-commerce efforts and other features such as video. The company added 8% more global monthly active users last quarter, closing with 465 million.
Zacks estimates call for its revenue to climb 8% in 2023 and then surge over 16% next year to pull in $3.5 billion. Meanwhile, its adjusted earnings are projected to expand by 55% and 18%, respectively. The stock’s upbeat EPS outlook helps it land a Zacks Rank #1 (Strong Buy) right now.
Image Source: Zacks Investment Research
Pinterest was a pandemic winner alongside other digital ad-focused stocks such as Snap, soaring from $15 to over $80 per share. But that rally was never sustainable and PINS tumbled from its peaks alongside many other growth stocks to trade around where it was in its early days as a public company in 2019.
PINS just broke back above its 50-day moving average, with it trading 23% under its average Zacks price target.
Wix.com Ltd. ((WIX - Free Report) ) is bolstering its website-building offerings to help it carve out more market share among professional site designers. Wix has posted blowout bottom-line results over the last year, including a big Q2 beat.
Wall Street and developers are gravitating toward its AI efforts and other new features. Plus, Wix’s push to focus on earnings helped it post its first-ever quarter of positive GAAP operating income last quarter.
Zacks estimates call for Wix to swing from an adjusted loss of -$0.17 a share to +$3.35 in FY23 on the back of 12% higher revenue. The company is then projected to expand its sales by another 12% next year to help boost its bottom line by over 5%. Wix’s adjusted earnings outlook helps it capture a coveted Zacks Rank #1 (Strong Buy) at present.
Image Source: Zacks Investment Research
Wix shares have climbed over 400% since its market debut roughly 10 years ago to blow away the Zacks Tech sector’s 220%. Despite that run, Wix is trading 75% below its highs and 30% under its average Zacks price target.
Wix is currently trading between its 50-day and 200-day. And Wix’s valuation levels are beginning to look far more appealing.
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3 Top-Ranked Beaten-Down Tech Stocks to Buy for Long-Term Upside
Today’s episode of Full Court Finance at Zacks explores where the stock market stands in the early days of the fourth quarter. The episode then dives into three Zacks Rank #1 (Strong Buy) technology stocks—Uber, Pinterest, and Wix.com—that investors might want to consider buying for longer-term growth upside.
The bulls held their ground at the pivotal 200-day moving average on Wednesday on signs that the labor market was cooling. The market then closed slightly lower on Thursday, as Wall Street remained mostly hands-off ahead of September nonfarm payroll data on Friday.
If the jobs data is cool and the early part of third quarter earnings season—which unofficially kicks off on October 13—showcases ongoing strength, the market could be headed for a solid stretch after a dreadful September.
Image Source: Zacks Investment Research
The S&P 500 remains at its most oversold RSI levels since the market bottomed around this time last year.
More importantly, the Fed remains near the end of its hiking efforts, barring a massive uptick in inflation. The outlook for earnings also looks flat-out impressive (read here for more on S&P 500 earnings growth).
Uber ((UBER - Free Report) ) is proving it can become profitable and post impressive growth at the same time. The ride-hailing and delivery titan reported a GAAP operating profit for the first time in its history last quarter. Zacks estimates call for it to swing from an adjusted loss of -$4.65 a share last year to +$0.42 in FY23 and then post roughly 160% adjusted earnings expansion in 2024.
Uber’s upbeat earnings outlook has it at a Zacks Rank #1 (Strong Buy) right now. Meanwhile, Zacks estimates call for Uber’s revenue to climb by over 17% in 2023 and another 18% in FY24.
Image Source: Zacks Investment Research
Uber is focused on expanding its core business segments, while still preparing for an autonomous vehicle future. Shares have soared 80% YTD, yet they still trade 30% below their average Zacks price target.
Uber is currently trying to retake its 50-day moving average, after pulling back from its late-July highs. Uber trades at a 65% discount to its own highs at 2.2X forward sales and 40% below the Zacks tech sector. And 27 of the 33 brokerage recommendations Zacks has are “Strong Buys.”
Pinterest ((PINS - Free Report) ) stands out among Meta, Snap, and others since its social media-style platform is essentially a digital vision board. Pinterest, in its own words, is a “visual discovery engine for finding ideas like recipes, home and style inspiration, and more.” PINS is a hit with its users, as well as advertisers, small businesses, entrepreneurs, and others because paid content and ads fit seamlessly into the Pinterest platform.
Pinterest has focused on boosting its e-commerce efforts and other features such as video. The company added 8% more global monthly active users last quarter, closing with 465 million.
Zacks estimates call for its revenue to climb 8% in 2023 and then surge over 16% next year to pull in $3.5 billion. Meanwhile, its adjusted earnings are projected to expand by 55% and 18%, respectively. The stock’s upbeat EPS outlook helps it land a Zacks Rank #1 (Strong Buy) right now.
Image Source: Zacks Investment Research
Pinterest was a pandemic winner alongside other digital ad-focused stocks such as Snap, soaring from $15 to over $80 per share. But that rally was never sustainable and PINS tumbled from its peaks alongside many other growth stocks to trade around where it was in its early days as a public company in 2019.
PINS just broke back above its 50-day moving average, with it trading 23% under its average Zacks price target.
Wix.com Ltd. ((WIX - Free Report) ) is bolstering its website-building offerings to help it carve out more market share among professional site designers. Wix has posted blowout bottom-line results over the last year, including a big Q2 beat.
Wall Street and developers are gravitating toward its AI efforts and other new features. Plus, Wix’s push to focus on earnings helped it post its first-ever quarter of positive GAAP operating income last quarter.
Zacks estimates call for Wix to swing from an adjusted loss of -$0.17 a share to +$3.35 in FY23 on the back of 12% higher revenue. The company is then projected to expand its sales by another 12% next year to help boost its bottom line by over 5%. Wix’s adjusted earnings outlook helps it capture a coveted Zacks Rank #1 (Strong Buy) at present.
Image Source: Zacks Investment Research
Wix shares have climbed over 400% since its market debut roughly 10 years ago to blow away the Zacks Tech sector’s 220%. Despite that run, Wix is trading 75% below its highs and 30% under its average Zacks price target.
Wix is currently trading between its 50-day and 200-day. And Wix’s valuation levels are beginning to look far more appealing.