In the world of stocks, where opportunities often come at a premium, it’s rare to stumble upon bargains that have the potential to catapult your portfolio to new heights. Yet, amidst a bullish market trend, a handful of tech stocks have defied the odds, offering investors a chance to strike gold.
Alphabet (GOOG, GOOGL)
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is rumored to be on the cusp of a groundbreaking partnership with Apple (NASDAQ:AAPL), where Google’s AI marvel, Gemini, could potentially power Apple’s iPhones.
This strategic alliance has the potential to not just move the revenue needle for Alphabet but also catapult it into the stratosphere of global recognition, a win worth more than a king’s fortune.
Gemini, with its unparalleled ability to process vast amounts of data swiftly, is set to captivate audiences as it permeates the iPhone ecosystem. The more its strengths are showcased, the more ubiquitous its adoption is likely to become, paving the way for new revenue streams for Alphabet.
In the midst of all this technological marvel, Alphabet’s search engine remains robust, and its YouTube platform flourishes. Moreover, the Google Cloud segment is sprinting ahead with profitability.
IBM (IBM)
Source: shutterstock.com/LCV
IBM (NYSE:IBM) has unleashed WatsonX, a revolutionary system designed to assist businesses in the seamless integration and deployment of AI, simplifying coding processes, and enabling data storage for AI applications.
The tech titan witnessed a 6% surge in revenue from its data and AI segment in Q3 2023, all thanks to the WatsonX’s prowess. CEO Arvind Krishna highlighted a double-fold surge in demand for AI services, underscoring the platform’s significance in IBM’s growth trajectory.
With an anticipated free cash flow of $12 billion this year, IBM’s shares are currently trading at a mere 14.75 times that forthcoming cash flow, making it a standout deal in the realm of tech investments.
PayPal (PYPL)
trading at bargain prices” class=”alignright wp-image-2633551″ srcset=”https://investorplace.com/wp-content/uploads/2024/01/pypl1600-300×169.png 300w, https://investorplace.com/wp-content/uploads/2024/01/pypl1600-1024×576.png
Source: Tada Images / Shutterstock.com
The Resilience of PayPal in the Face of Adversity
For the longest time, Wall Street seemed to harbor an unwarranted grudge against PayPal (NASDAQ:PYPL). Personally, I fail to grasp the negativity surrounding this finance-tech stalwart. With a stellar reputation as a fintech powerhouse, PayPal boasted an impressive $6.68 billion in operating income last year, marking a 9% year-over-year growth in its revenue last quarter, a financial feat few can rival. The fresh-faced CEO’s relentless drive to streamline operations and the company’s attractively undervalued stock position should have been perceived as virtues, not vices.
A Tale of Unjustified Market Panic
Despite these glowing attributes, unreasonably jittery sentiments about Apple Pay seizing an outsized slice of the market pie and PayPal’s profit growth slackening paced the stock’s nosedive from a lofty perch of almost $77 on April 14, 2023, to a meager over $50 on October 27.
An Unfair Assassination of Reputation
Alas, PayPal found itself unfairly lambasted by baseless anxieties. Unsubstantiated worries over Apple Pay cannibalizing PayPal’s market share loomed large, feeding concerns of profit stasis.
Emerging from the Ashes
Luckily, the tide seems to be turning for PayPal, with its shares rallying for seven consecutive sessions, showcasing nearly a 6% year-to-date growth.
Bright Horizons on the Horizon
Market analysts, on average, foresee the company’s earnings per share ascending to $5.57 next year, up from $5.06 in 2024. Notably, PayPal trades at a bargain-basement forward price-earnings ratio of approximately 12.3 times.
As of the publication date, Larry Ramer had no positions, either direct or indirect, in the securities mentioned here. The views expressed in this piece are solely those of the author, in adherence to InvestorPlace.com’s Publishing Guidelines.
Larry Ramer, with a 15-year tenure in U.S. stock analysis and article crafting, carries a rich history of service at The Fly and Israel’s premier business journal, Globes. His columns have graced InvestorPlace since 2015, with a stellar track record of contrarian gems, including SMCI, INTC, and MGM. Reach out to him on Stocktwits at @larryramer for compelling insights.
