Chicago, IL – January 3, 2024 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Zoom Video Communications Inc. ZM, BlackLine, Inc. BL, PLDT Inc. PHI and TransAct Technologies Inc. TACT.
Here are highlights from Tuesday’s Analyst Blog:
4 Bargain Tech Stocks to Enhance Portfolio Returns in 2024
Tech stocks made a remarkable comeback in 2023 after a massive sell-off in 2022 on recession concerns, inflationary pressure, increased oil prices and higher interest rates. With last year's rise of 43.4%, the tech-laden Nasdaq Composite has outperformed The Dow Jones Industrial Average and the S&P 500 index's increase of 13.7% and 24.2%, respectively.
Technology stocks have more than 50% of weightage in the Nasdaq Composite index. Technology Select Sector SPDR, the most important component of the broad market index, has returned 54.7% YTD.
The rally has been primarily driven by cooling inflationary pressure and declining gasoline prices, which have subsided the fears of a recession. A resurgence in global semiconductor sales, along with a potential benchmark interest rate cut this year, is expected to continue driving the momentum for tech stocks in 2024.
The tech sector's 2023 rally catapulted several stocks to new heights, but it also created disparities. Amid the fervor, many fundamentally strong tech companies didn't witness the same elevation in their stock prices, making them potentially lucrative but often overlooked opportunities. This post-rally evaluation in 2024 is a chance for investors to unearth undervalued tech gems that might have been sidelined during the fervent market activity.
In our opinion, Zoom Video Communications Inc., BlackLine, Inc., PLDT Inc. and TransAct Technologies Inc. are among the stocks that were left behind last year's tech rally. Given the strength of their fundamentals and solid prospects, it seems wise to add these stocks to your portfolio. These are among the bargain stocks that are poised for robust gains in 2024.
4 Prominent Picks
Zoom's cloud-native unified communications platform, which combines video, audio, phone, screen sharing and chat functionalities, makes remote working and collaboration easy. ZM stock advanced 6.2% last year, significantly underperforming the Zacks Computer and Technology sector's increase of 53.4%. With a closing price of $71.91 on Dec 29, 2023, the stock trades 15.5% lower than the 52-week high of $85.13.
Zoom is gaining significant traction from the hybrid working wave, which has accelerated the need for digital transformation among enterprises. The company is benefiting from steady growth in its subscriber base and enterprise customer base, backed by the strong demand for offerings like Zoom Phone. The launch of AI-driven solutions like Zoom Doc and Zoom AI Companion holds promise. Zoom's expanding international presence is a key catalyst. The company's freemium business model helps it win customers rapidly, which it can later convert into paying customers.
The Zacks Consensus Estimate for fiscal 2024 earnings has been revised upward by 3 cents to $4.94 per share in the past 30 days, suggesting year-over-year growth of 13%. The long-term estimated earnings growth rate for the stock stands at 33.5%. The stock currently sports a Zacks Rank #1 (Strong Buy) and has a VGM Score of B. You can see the complete list of today's Zacks #1 Rank stocks here.
Per Zacks' proprietary methodology, stocks with a combination of Zacks Rank #1 or #2 (Buy) and VGM Score of A or B offer solid investment opportunities.
BlackLine is a provider of cloud-based solutions for Finance & Accounting that centralize and streamline financial close operations and other key F&A processes for midsize and large organizations. BL stock declined 7.1% last year. With a closing price of $62.44 on Dec 29, 2023, the stock trades 19.8% lower than the 52-week high of $77.90.
BlackLine benefits from a robust finance portfolio, enhancing efficiency for businesses of all sizes by providing innovative solutions and automation to streamline financial processes. The company has expanded its accounts receivable automation portfolio by acquiring Data Interconnect, providing enhanced e-Invoice Presentment and Payment capabilities for various invoicing formats and global compliance. These additions complement BlackLine's unified AR automation solutions, empowering efficient cash management and data-driven decision-making.
The Zacks Consensus Estimate for BL's 2024 earnings has been revised upward by 23 cents to $1.98 per share over the past 60 days. The stock currently sports a Zacks Rank #1 and has a VGM Score of B.
PLDT is the leading telecommunications provider in the Southeast Asian country. PHI stock rallied 2.8% last year. With a closing price of $23.43 on Dec 29, 2023, the stock trades 16.3% lower to the 52-week high of $27.98.
PLDT has a strategic partnership with Rocket Internet SE, a European Internet company, to develop online and mobile payment solutions. PLDT operates the country's most extensive international submarine cable network and has activated the US-Transpacific Jupiter cable system to strengthen its extensive fiber network. The company is set to expand further with the completion of two more major international cable systems, namely Asia Direct Cable and the APRICOT cable system, set to be completed in the next two years.
The Zacks Consensus Estimate for PLDT's 2024 earnings has been revised upward by 26 cents to $2.87 per share over the past 30 days. The stock currently sports a Zacks Rank #1 and has a VGM Score of B.
TransAct Technologies offers software-driven technology and printing solutions for high-growth markets, including food service technology, point-of-sale automation, and casino and gaming. The stock currently carries a Zacks Rank #2 and has a VGM Score of A. TACT stock advanced 10.5% last year. With a closing price of $6.98 on Dec 29, 2023, the stock trades 26% lower to the 52-week high of $9.44.
TransAct is benefiting from the growing demand for its products and services amid accelerated digital transformation and business automation across organizations. The company's printers are trusted worldwide to provide crisp, clean transaction records from receipts, tickets and coupons, register journals and other documents. TransAct benefits from higher sales of AccuDate 9700 products. It also added 710 net new BOHA! terminals in the third quarter of 2023, bringing the total number of online terminals in the market to 13,795.
The Zacks Consensus Estimate for TACT's 2024 bottom line is pegged at a loss of 17 cents per share, which improved from the loss of 45 cents projected 60 days ago.
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +6.2 average gain per year. Amazingly, they soared with average gains of +46.4%, +49.5% and +55.2% per year. Today you can access their live picks without cost or obligation.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
