Top 5 Tech Stocks Trading at Bargain Levels as September Kicks Off
The ongoing year-to-date rally on Wall Street is showing signs of exhaustion amid fresh uncertainty over the Federal Reserve’s outlook for interest rates and as recent data has painted a worrying picture of the economy.
All three main indexes posted losses for August, with the blue-chip Dow Jones Industrial Average falling 2.4%, while the benchmark S&P 500 and the tech-heavy Nasdaq Composite declined 1.8% and 2.2% respectively.
For the Nasdaq, it was the biggest monthly loss since December 2022.
Amid the current backdrop, I used the InvestingPro stock screener to search for the best undervalued technology stocks that have the potential to provide attractive investment returns in the months ahead.
InvestingPro's stock screener is a powerful tool that can assist investors in identifying cheap bargain stocks with strong potential upside. By utilizing this tool, investors can filter through a vast universe of stocks based on specific criteria and parameters, saving you substantial time and effort.
To identify technology stocks that are currently trading at bargain prices, I first scanned for companies with an InvestingPro ‘Fair Value’ Label of either ‘Bargain’, or ‘Undervalued’.
I then filtered for names with an InvestingPro ‘Fair Value’ upside greater than or equal to 20%. The Fair Value estimate is determined according to several valuation models, including price-to-earnings (P/E) ratios, price-to-sales (P/S) ratios, and price-to-book (P/B) multiples.
And those companies with a market cap of $20 billion and above made my watchlist.
Once the criteria were applied, I was left with a total of just five companies. All five stocks offer compelling valuations, strong fundamentals, and the potential for long-term growth.
Among
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