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Here Are 4 Tech Stocks defying analysts and Set To Soar

August 09
09:59 2018

Looking for fresh investing inspiration! Look no further. We used TipRanks’ Trending Stocks tool to find the 4 best-rated tech stocks right now. You can see the filters we used- best-rated stocks from the last 30 days with a market cap over $5 billion.

“Following recent weakness in social media and other tech related names, there has been increased rhetoric surrounding the ‘demise of Tech’ and the suggestion that tech has lost its market leadership position. In short, we believe this rhetoric is premature,” says Larry Adam, chief investment officer of Deutsche Bank’s Wealth Management Americas unit.

Indeed, the S&P 500 IT sector is still 28% higher over the past year. And looking forward, Adam expects full year tech earnings to rise by about 20% in 2018 and 11% in 2019.

With this in mind, let’s take a closer look at these 4 top tech stocks now:

OpenText (NASDAQ:OTEX)

Canada-based tech stock OpenText is surging right now. On a five-day basis, shares are up 4%. The company has just reported strong Q4 results, which more than compensated for the shortfall last quarter. Following the August 3 report, five analysts published OTEX Buy ratings.

“Solid Q4 provides redemption” cheered RBC Capital’s Paul Treiber (Profile & Recommendations) in his investor report. He ramped up his price target from $44 to $45 on August 3 (16% upside potential).

According to Treiber, “Strength was broad based and reflects OpenText’s product investments over the last several years.” Plus “management sees cloud revenue (+19% Y/Y Q4) accelerating, given expected demand for OpenText’s business network (e.g. electronic invoicing), OT2 (public cloud/SaaS), and private cloud / managed services.”

The risk/ reward is ‘attractive’ says Treiber- especially as OTEX continues to trade below peers. OpenText develops and sells enterprise information management (EIM) software. Using EIM, businesses can transform big data into actionable insights.

In the last three months, this stock has received 9 buy ratings. As a result it has a bullish Strong Buy analyst consensus. This is with a $45.11 average price target (16% upside potential).

View OTEX Price Target & Analyst Rating Details

ZenDesk (NYSE:ZEN)

Up 85% year-to-date, analysts are convinced that this Danish customer service software company still has room left to run. Over the last week, 7 analysts have published ZEN Buy ratings, with only 1 hold rating.

The “growth engine is roaring” exclaims KeyBanc’s Brent Bracelin (Profile & Recommendations). This top analyst ramped up his price target from $58 to $71 on July 31. From current levels, this indicates just over 13% upside potential from current levels. He praises the company’s ‘monster’ quarter and sees a clear path to the $1 billion revenue goal.

“2Q18 results impressed on a revenue and billings beat of $4M and $12M, respectively, contributing to a full-year raise of $16M.” As a result, “2018 growth prospects could now top 36% y/y (vs. guidance of 30% in January).”

In total, 10 analysts have published Buy ratings on ZEN in the last three months. One analyst published a Hold rating in the same period. These analysts (on average) see this ‘Strong Buy’ stock rising 9% to hit $68.05.

View ZEN Price Target & Analyst Rating Details

GoDaddy (NYSE:GDDY)

Internet domain provider GoDaddy has put on a tremendous performance so far this year. Year-to-date the stock is up over 50%. On the back of solid Q2 earnings, 8 analysts reiterated their GDDY Buy ratings. Only 1 analyst decided to remain sidelined on the stock.

SunTrust Robinson’s Naved Khan (Profile & Recommendations) is a big supporter of the stock. He reiterated his Buy rating on August 3 with an $87 price target (13% upside potential). Khan breaks down his bullish analysis here: “We reiterate our Buy/$87 PT following a strong 2Q print and early signs of progress against medium/Long-term growth objectives (conversational marketing, GoCentral, customer experience, etc).”

Plus the core domains business continues to grow at a double-digit pace, “with the strength likely to be sustained into 2H18 on sub growth, higher retention and after-market strength.” Plus balance sheet capacity for accretive M&A represents further potential upside.

In the last three months, GDDY has received 10 buy ratings vs just 1 hold rating. These analysts have an $84 average analyst price target on the stock (10% upside).

View GDDY Price Target & Analyst Rating Details

Alphabet (NASDAQ:GOOGL)

Internet king Alphabet has received a whopping 27 buy ratings recently. This is versus just 3 hold ratings. Analysts rushed to reiterate their ratings following extremely impressive earnings results. Adjusted EPS for the quarter of $11.75 easily beat the Street consensus of $9.59.

“We continue to recommend owning GOOGL. Alphabet continues to invest heavily in front of large growth opportunities, while its core ad business continues to churn out impressive growth,” states five-star KeyBanc analyst Andy Hargreaves (Profile & Recommendations).

He is very bullish on the stock and its long-term potential. ““We believe strong growth potential remains in opportunities with cloud, hardware, YouTube, Waymo, and Other Bets, which should add significant value over time.” As a result, Hargreaves boosted his price target from $1,230 to $14,30 (14% upside potential).

Furthermore, 2018 is shaping up to the year of Google Cloud. Hargreaves sees the cloud as a significant long-term growth opportunity which could emerge as a $30B-plus run-rate business by 2023.

Overall the stock scores a firm ‘Strong Buy’ consensus rating (based on the last three months). This is with a $1,378 average price target (10% upside potential). Year-to-date GOOGL is already up over 19%.

View GOOGL Price Target & Analyst Rating Details

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