With the innovation sector broadly suffering a corrective spell, it’s tempting to jump on tech stocks to buy now. However, the million-dollar question has always been, which ones?
Yes, some enterprises have suffered big valuation cuts. However, we have to determine if that’s a discount or a value trap. For example, I’m hesitant about pure-play electric vehicle manufacturers. Yes, the red ink has been flying. Yet there could be more pain down the line if economic undertones don’t cooperate. Still, there are also ideas that (arguably) make sense. Below are relevant tech stocks to buy now.
CyberArk Software (CYBR)
Operating under the infrastructure software category, CyberArk Software (NASDAQ:CYBR) develops, markets and sells software-based identity security solutions and services in the U.S. and other parts of the globe. Its solutions include Privileged Access Manager, which offers risk-based credential security and session access. Given the risks and costs associated with security breaches, CyberArk enjoys a large and burgeoning addressable market.
To be fair, the current premium of CYBR stock is high, which has dissuaded some investors. On a trailing-year basis, shares trade for 13X revenue. However, in the past five sessions, CYBR lost 5% of equity value, presenting a better proposition. It’s also possible that there could be near-term corrective action, which could drive the price down more.
Here’s the enticing part, though. For the current fiscal year, covering experts anticipate sales to hit $927.3 million. That’s up 23.3% from last year’s result of $751.89 million. At projected fiscal 2024 sales, CYBR would trade at a 10.8X revenue multiple.
Lastly, analysts rate shares a consensus strong buy with a $299.83 price target. It’s one of the tech stocks to buy now.
Wix (WIX)
Technically considered an enterprise in the infrastructural software space, Wix (NASDAQ:WIX) is colloquially known as a web development platform. It helps individuals and businesses get up to speed quickly with their internet presence. Perhaps the best function is its graphical user interface. You click and drag the elements that you want on your site – it’s super easy.
Another reason to consider WIX as one of the top tech stocks to buy now is the burgeoning gig economy. With so many people getting a taste of independent living, they may choose to venture out on their own rather than return to the office like so many companies have threatened to do. That could be a huge plus for Wix because the platform doesn’t force you to learn anything.
With that in mind, it’s easier to trust covering experts’ projections about WIX. For fiscal 2024, they’re looking at earnings per share of $4.84. That’s a solid step up from last year’s EPS of $4.39. Also, revenue could land at $1.75 billion, up 12.1% from 2023’s print of $1.56 billion.
Marvell (MRVL)
Working in the semiconductor industry, Marvell (NASDAQ:MRVL) provides data infrastructure semiconductor solutions, spanning the data center core to the network edge. Per its public profile, Marvell develops and scales complex System-on-a-Chip architectures, integrating analog, mixed-signal and digital signal processing functionality. It also offers a wealth of connectivity solutions.
Because it’s one of the most relevant ideas among tech stocks to buy now, you’re not going to get MRVL on a discount. For example, shares trade at a forward earnings multiple of 43.5X and trailing-year revenue multiple of 10.2X. Both stats are elevated compared to the semiconductor industry’s average readings. Still, in the past five sessions, MRVL slipped almost 7%. That’s a pretty decent discount.
Now, one of the aspects that makes Marvell risky is that experts aren’t sure if fiscal 2025 (the current fiscal year) will see top-line growth. Instead, investors may have to wait until fiscal 2026, where sales may shoot to $6.97 billion.
Still, analysts rate MRVL a consensus strong buy with an $89.42 price target, projecting 37% upside.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.