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2 High-Growth Tech Plays Ready to Outperform S&P 500 With Double-Digit Gains

Published 06/19/2024, 03:14 PM
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Our analysis of information technology stocks has identified two companies with exciting possibilities. These picks, projected to grow by over 10% and 20% respectively, are part of the "Beat the S&P 500" portfolio on Propicks, an AI-driven stock selection tool offered by InvestingPro. Since its launch last October, this portfolio has impressively outperformed the market, generating a 32.88% return.

InvestingPro empowers you to gain a decisive edge in the market. Access comprehensive investment strategies, exclusive indicators, in-depth historical data, and professional news. Make informed decisions with confidence and know exactly which stocks to buy and sell.

Don't miss out! Use the limited-time coupon code OAPRO2 for special pricing on InvestingPro and unlock your path to superior returns.

Now, continuing our analysis, let's take a look at the two high-potenital stocks we uncovered recently.

1. Adobe

  • Current Price: $522.25
  • Fair Value on InvestingPro: $582 (11.5% upside)
  • Analysts’ Target: $608
  • Financial Health Score: 2.91, with an overall grade of C

Adobe Systems Incorporated (NASDAQ:ADBE), a well-known company, might be even more attractive than some investors realize, particularly considering its potential in the realm of artificial intelligence (AI). Despite a 12% year-to-date decline, InvestingPro's analysis suggests the stock is undervalued with a Fair Value of $582, representing a potential upside of 11.5%.

This bullish picture is further supported by analyst sentiment, with an average target price of $607.93. InvestingPro's suite of investment models also reinforces the potential, ranging from a low of $489.21 to a high of $668.51 (subscribe for a full breakdown).

Financially, Adobe boasts impressive gross profit margins and has seen 22 analysts revise their earnings estimates upwards recently. InvestingPro assigns a financial health score of 2.91 (grade C), indicating good overall performance. While the relative value trend score (1.34) is a slight concern, the strong profit model score (4.40) paints a positive picture.

2. Salesforce

  • Current Price: $231
  • Fair Value on InvestingPro: $284.5 (22.7% upside)
  • Analysts’ Target: $299.64
  • Financial Health Score: 2.96, with an overall grade of C

Salesforce (NYSE:CRM) offers an attractive entry point for investors seeking growth potential. Despite recent stock price declines, InvestingPro's analysis suggests the stock is undervalued by 24.2%, with a Fair Value of $284.40. This bullish view is further supported by analyst sentiment, with an average target price exceeding $299.

Salesforce's financial health is another positive factor. The company boasts a perfect Piotroski score, indicating exceptional financial strength. InvestingPro's overall financial health score of 2.96 (grade C) reinforces this positive outlook. While the recent price trend is a slight concern, the strong growth metric (3.69) suggests promising future prospects for the company.

Outperform the Market with AI-Powered Investing

Since launching in October, Propicks, InvestingPro's AI-driven investment strategies have consistently delivered impressive real-world returns, exceeding the performance of the S&P 500.

  • Tech Titans: +68.99% return
  • Beat the S&P 500: +32.88% return, outperforming the benchmark index
  • Dominate the Dow: +18.03% return
  • Most Valuable Stocks: +30.39% return
  • Midcaps: +17.11% return

These strategies leverage artificial intelligence and various indicators to identify promising stocks before significant price increases, avoiding the risk of chasing past market highs.

Get access to the complete list of Propicks' top selections and discover how you can achieve similar gains in your portfolio.

Backtesting suggests that the "Beat the S&P" strategy could have delivered a remarkable 1052.6% return over ten years. Similarly, the Tech Titans strategy could have achieved a staggering 1768% return during the same period.

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Don't forget your free gift! Use coupon codes OAPRO1 and OAPRO2 at checkout to claim an extra 10% off on the Pro yearly and bi-yearly plans.

Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.

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