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Top 5 techs down more than the market — but up YTD
Sometimes when stocks move down, they're just becoming bargains. Consider these 5 tech stocks at current prices.
2021 was a wild ride for many stocks, including tech companies. We bring you five tech stocks that have had a rough ride in the past month but are still up year-to-date. These undervalued companies are definitely worth a look.
Intel Corp (INTC)
Intel was up almost 40% at one point this year. But it gradually fell behind the Nasdaq, returning a few percentage points less than the index year-to-date. The main reason behind this is the strong competition in Advanced Micro Devices (AMD), which offered better products for roughly the same price.
As of October 2021, investment research firm Morningstar considers $65 as a fair value for the INTC stock, meaning if you can buy it cheaper than that, you could be getting a bargain. This could quickly change, however, considering the twelfth-generation Intel processors will be released on November 19. This generation of processors reportedly performs better than competitor Ryzen’s processors from AMD, according to OneRaichu on Twitter. If it turns out to be true, Intel could finally see some gains in the coming months.
Adobe Inc (ADBE)
You probably know Adobe as the company behind the .pdf files you use every day, as well as Photoshop and a host of photo and video editing software. The company gained almost 40% during 2021, but like other tech stocks, it lagged behind the Nasdaq in September.
The reasons for the drop abound. Some analysts claim the company’s recurring revenue figures barely exceeded consensus estimates in the last quarter, which caused the stock to slide. Morningstar analysts consider $610 to be fair value, so anything lower is worth considering. What’s more, the majority of TipRanks analysts have a 12-month target of around $700.
NVIDIA Corp (NVDA)
Nvidia has had one of the most impressive runs this year, returning almost 60% year-to-date. This isn’t surprising given the chip shortage –– particularly the GPU shortage –– caused by work-from-home orders and lockdowns. With demand far exceeding supply, the company has managed to consistently earn more per share than analysts’ forecasts.
In September and October 2021, Nvidia’s shares dropped almost the same as the Nasdaq index. However, most analysts on TipRanks see a gain of up to 15% in the next 12 months. Given that the company plans to release its new 3000 RTX super cards in the coming months, the new 4000 RTX series in 2022 and with demand still exceeding supply, analysts’ projections could change quickly.
Microsoft Corp (MSFT)
Microsoft moved up more than 30% year-to-date. With the Windows operating system installed on more than 30% of the devices in the US, no wonder the stock has performed so well. Even so, the company had a rough September 2021 — although not as rough as some other tech stocks. But October is looking much better.
What Microsoft has going for it was the release of the Windows 11 operating system on October 5. Slowly, a lot of the devices operating on Windows 10 will upgrade in the coming weeks and months. This could have a positive impact on the stock in the coming months. What’s more, most analysts on TipRanks give Microsoft a strong buy rating with the highest potential target being more than 40% in the next 12 months.
Apple Inc (AAPL)
Apple has slightly outperformed the Nasdaq with a 9% year-to-date return. In September, it performed worse than the index, but in October, the stock seems to have started recovering. However, Apple recently released its new iPhone and iPad models. It announced the new Apple Watch series, and it keeps putting out new products.
This can keep the company growing. Morningstar analysts consider the stock overvalued above $124. However, most analysts on TipRanks rated the company a strong buy, with a maximum price target of around 40% higher in the next 12 months.
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