Buy the lows? 4 tech stocks analysts see turning up


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By Robbie Citrino for Kapitall.

S&P's Tech Index has been up nearly 9.4% YTD beating the broader S&P 500 index by 1.4%. Despite good news for some tech stocks, there have been a few laggards that have seen their market caps drop by over a quarter. Are these stocks due for a rebound in the second half of the year? Some analysts think so.

LinkedIn ( LNKD ) , the business social network for over 225 million users has not been a Wall Street favorite since reporting a disappointing revision to its earlier earnings estimates this year. Nevertheless, it still holds 16 analyst buy ratings versus ten holds and zero sells, and after diving 26% from 6 months ago, analysts predict it will rebound 43% by next year.

Cybersecurity company FireEye ( FEYE ) didn't meet earnings expectations back in March, and investors have fallen out of love with the company, sending its share price to almost half what it was six months ago. Despite this, analysts still predict a large upside in its market cap in the coming months, giving it 9 buy ratings to just 9 holds and 0 sells.

Some pundits called a ' 3D printing bubble ' earlier in 2014, leading to a selloff of more than a third of 3D System's ( DDD ) market value. Analysts, on the other hand, believe that this pessimism is misguided, retaining 10 buy ratings, 3 holds and just 2 sells for the young company. Although it might not reach its December highs of close to $100 per share, the $65 price target does show a comfortable 18% upside for investors.

Negative earnings revisions do not usually spell prosperity for a company, however that hasn't stopped analysts from continuing to like Splunk ( SPLK ) . Rated with 14 buys and 5 holds, the big data firm is marked with a solid 66% upside after falling 43% earlier this year.

Can these tech stocks rebound from their lows or are analysts making a big mistake on these companies?

Click on the interactive chart to view data over time. 

1. 3D Systems Corp. ( DDD , Earnings , Analysts , Financials ): Engages in the design, development, manufacture, marketing, and servicing of 3D printers and related products, print materials, and services. Market cap at $7.83B, most recent closing price at $76.39.

2. FireEye, Inc. ( FEYE , Earnings , Analysts , Financials ): Provides products and services for detecting, preventing, and resolving advanced cybersecurity threats. Market cap at $8.75B, most recent closing price at $76.31.

3. LinkedIn Corporation ( LNKD , Earnings , Analysts , Financials ): Operates an online professional network. Market cap at $23.93B, most recent closing price at $199.59.

4. Splunk, Inc. ( SPLK , Earnings , Analysts , Financials ): Provides software solutions that provide real-time operational intelligence in the United States and internationally. Market cap at $9.62B, most recent closing price at $90.75.

Kapitall Wire is a division of New Kapitall Holdings, LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings, LLC. Kapitall Wire offers free investing ideas, intended for educational information purposes only. It should not be construed as an offer to buy or sell securities, or any other product or service provided by New Kapitall Holdings, LLC, and its affiliate companies.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing Stocks
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