Some of the biggest names in the tech sector soaked up much of the growing investor enthusiasm, leaving smaller and mid-cap companies in the dust. However, if you look closely enough, you might spot some seriously oversold tech stocks. I will use the RSI to uncover some of the ones that are still considered oversold to help us find them. An RSI of 30 or less usually implies that the market is oversold. At the same time, we will investigate to determine if the oversold conditions are justified or if they constitute a fantastic buying opportunity.
Oversold Tech Stocks: PayPal (PYPL)
PayPal (NASDAQ:PYPL), a pioneer in financial technology, is having a difficult year. PayPal’s dominance in the industry remains strong, despite its latest earnings report falling short of expectations. PayPal controls 41% of the global online payment processing business, and Stripe comes in second with a paltry 21%.
Additionally, PayPal’s finances, while not outstanding, are stable and sustainable. Despite missing analyst projections, PayPal reported a 7% year-over-year increase in revenue, a 2% margin increase and an 11% decrease in non-operating expenses.
With its large user base and established infrastructure, PayPal is a leading player in the digital payments industry. Factors such as the growing desire for cashless transactions and the expanding e-commerce industry highlight the company’s long-term growth potential. Furthermore, the recent debut of PayPal’s stablecoin in the crypto markets ensures that the financial giant remains technologically advanced.
L3Harris Technologies (LHX)
L3Harris Technologies (NYSE:LHX) just beat earnings and revenue projections in its most recent second quarter earnings report.
In particular, L3Harris increased its revenue by 13% year-over-year, demonstrating its ability to weather adverse market conditions and remain prominent in changing market situations. After the successful completion of the acquisition of Aerojet Rocketdyne, the company’s strategic vision will pay off.
Aerojet Rocketdyne is one of the largest players in the burgeoning space technology sector, so the acquisition is already paying off. The company, for example, makes boosters for NASA’s Orion project, as well as high-altitude ballistic defense components. The aerospace company will benefit from increased access to new contracts, as well as expanded manufacturing and logistics networks under L3 Harris. Given the company’s existing stability and long-term outlook, the recent decline represents a suitable entry option for this oversold stock.
Oversold Tech Stocks: Paycom Software (PAYC)
Paycom Software (NYSE:PAYC) is a provider of payroll and human resources technology solutions that is struggling in today’s tight job market. Even though the stock is down 7% this year, new developments paint a more positive picture. In fact, the company’s second-quarter earnings beat projections, demonstrating its increasing adaptability to changing economic conditions.
Paycom’s prospects are bright in the near future. Management anticipates significant earnings growth in the coming years, reflecting the company’s strategic position in a volatile market. In addition, they anticipate an increase in cash flows and the value of the shares.
Paycom could recover from its recent slump, based on strong quarterly results and positive future expectations. As more companies adopt digital HR and payroll management solutions, company offerings remain relevant and necessary, albeit overblown. Paycom could be a fantastic oversold stock for investors looking at the possibilities in the technology sector.
Chegg (CHGG)
With the start of the school year just around the corner, oversold edtech startup Chegg (NYSE:CHGG) is poised to benefit from a surge of new and returning college students. Chegg’s shares are down 60% so far this year, despite being best known for its textbook rental service. However, there is an opportunity for investors as Chegg investigates additional inventive products and develops them outside of its existing product offerings.
Chegg is getting in on the AI action and will soon be releasing an AI-based task tool. The new partnership will “combine the best of generative AI with Chegg’s high-quality proprietary content and its proven ability to help improve student outcomes.” With many attributing the year’s tech upswing to AI-fuelled enthusiasm, Chegg’s new move may serve to bring the edtech giant back up to speed with the rest of the market.
In addition to its AI-focused offering, Chegg demonstrated its dedication to shareholder loyalty with a new share buyback program. Investors interested in educational technology and innovation may find Chegg’s trajectory worth following as it continues to expand and explore AI-driven prospects in the education industry. With the company’s recent liquidation, this may be a good time to explore these oversold EdTech stocks.
Oversold Tech Stocks: ChargePoint (CHPT)
ChargePoint (NYSE:CHPT) is down 22% since January. That drop may come as a surprise given that the overall electric vehicle (EV) market is up 35% this year. The difference between the two suggests that ChargePoint has been oversold and is poised for a bounce. As businesses adapt and outgrow constrained supply lines, a new surge of electric vehicles will soon hit the roads, making ChargePoint an essential part of the national (and global) infrastructure.
Customers looking for convenient and affordable charging alternatives offer greater growth potential. This, combined with the company’s past performance, which beat earnings projections, highlights its potential.
ChargePoint sales increased 57% year-over-year, demonstrating the company’s ability to capitalize on the electric vehicle industry. As the world continues to move towards sustainable transportation alternatives, ChargePoint’s massive charging network and revenue growth may spark investor attention.
Keysight Technologies (KEYS)
Keysight Technologies (NYSE:KEYS) is a diverse and best-selling producer of electrical test and measurement equipment with a wide range of software solutions. The corporation has had a rough year, with its shares down 24%.
Keysight beat expectations in its most recent earnings report, but the stock fell as a result of a cautious forecast. While Keysight’s share price has fallen, it’s crucial to look at the bigger picture. Electronic test and measurement is essential in many areas, including telecommunications, electronics manufacturing, and research. Keysight’s products are critical to ensuring the quality and reliability of electronic devices and technologies, and there is a constant need for these solutions.
Keysight investors should assess the company’s strong track record in the industry, its ability to innovate and adapt to changing technology environments, and the core value of its products. The recent performance of the company’s stock is influenced by short-term market sentiment. However, its essential role in the electronics sector suggests the possibility of recovery and development as market conditions evolve.
Microchip Technology Inc (MCHP)
Microchip Technology Inc (NASDAQ:MCHP) is a leading manufacturer of microcontrollers, analog, mixed-signal integrated circuits, and Flash-IP. In particular, the stock has shown a favorable trend, with its value up 14% so far this year.
In the last quarter, the company beat analyst forecasts. A financial services company purchased $4.8 million worth of stock as a result of the stock’s good performance and oversold status. Despite the economic problems, Microchip is confident in its growth projections for the next quarter. This tenacity demonstrates the company’s strategic agility and its ability to navigate market volatility.
Lastly, Microchip’s status as an AI stock is noteworthy. Demand for microcontrollers and specialized ICs is likely to expand as companies increasingly integrate AI solutions. Finally, investors should examine its steady growth, financial stability, and prospects for future expansion into emerging technology fields.
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Categories: Technology
Source: vtt.edu.vn