InvestingPro’s Fair Value model captures 63% gain in Steelcase ahead of acquisition
- Technology stocks are outperforming with Nasdaq hitting a new record yesterday.
- The stars are aligning for a continued tech rally.
- Where can investors still find value in tech today?
- Looking for actionable trade ideas to navigate the current market volatility? Subscribe here to unlock access to InvestingPro’s AI-selected stock winners.
Technology stocks rose sharply on Monday, with the NASDAQ 1.86% to a new record high. The rally was led by chipmaker Qualcomm (NASDAQ:QCOM), which jumped more than 11% after announcing a new AI chip. Attention will stay on the tech sector this week as five of the “Magnificent Seven” report their third-quarter earnings.
Microsoft (NASDAQ:MSFT), Meta Platforms (NASDAQ:META), and Alphabet (NASDAQ:GOOGL) will report on Wednesday, followed by Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN) on Thursday. With recent optimism around AI investments and strong earnings so far this season, investors expect these companies to post solid results. They are also likely to offer upbeat forecasts, following the trend set by other large tech firms that have already reported
Positive earnings from these major tech firms could lift the entire sector, with some smaller players possibly outperforming the Magnificent Seven. In addition, the Fed’s expected rate cut tomorrow and the potential China-US trade agreement later this week add to the bullish momentum that could keep the tech rally going.
Over the next two days, investors will navigate three major events — the Fed meeting, earnings from five of the world’s biggest companies, and talks between the US and China. Each of these carries strong potential to push markets higher.
10 Large-Cap Tech Stocks Could Climb From +22% to +56%
In short, this may be a good moment to explore opportunities in large US tech stocks. To test this idea, we used the Investing.com screener to search the US market using the following criteria:
- Technology sector
- Capitalization of over $10 billion
- Potential upside of over 20% according to InvestingPro Fair Value, which combines several recognized valuation models.
- Potential upside of over 20% according to analysts’ estimates
This research helps identify large-cap US tech stocks that appear undervalued and have strong support from analysts.
Here are the 10 stocks we were able to identify using these criteria:
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More specifically, these stocks are trading 22.4% to 56.2% below their InvestingPro Fair Value, while analysts expect gains of 23.8% to 45.4%.
That said, these are not the only promising opportunities right now. When we expanded our search to smaller-cap tech stocks, we found several names showing triple-digit upside potential based on Fair Value, analyst targets, or both.
Finally, please note that the features mentioned in this article are far from being the only InvestingPro tools useful for market success. In fact, InvestingPro offers a whole range of tools enabling investors to always know how to react in the stock market, whatever the conditions. These include:
- AI-managed stock market strategies re-evaluated monthly.
- 10 years of historical financial data for thousands of global stocks.
- A database of investor, billionaire, and hedge fund positions.
- And many other tools that help tens of thousands of investors outperform the market every day!
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk belongs to the investor. We also do not provide any investment advisory services.