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Discover 3 Tech Stocks With More Than 50% Upside!
As the markets continue to recover from the long effects of the pandemic, the S&P 500 has started to show signs of optimism as it had recently entered into bull territory when it gained more than 20% from its October 2022 low. This was led by the tech stock rally - which is often a sign that investors are willing to take riskier bets. As investors continue to navigate the markets in a new territory that S&P 500 is in, the most common question we hear is, how do you find the best stocks to buy? TIneed, there are a lot of ways. However, one of the easiest ways to start hunting for the best tech stocks to buy is by using “Analyst Ratings.”
What are analyst ratings?
An analyst rating is an estimate or recommendation from investment researchers and financial analysts. They cover which assets to invest in and what assets not to invest in. These ratings range from a “Strong Buy” to a “Strong Sell,” depending on the consensus of the recommendation. These ratings can influence the market's perception of a stock, as the recommendations generally mean that following extensive research, market professionals see the worthiness of the stock being in one's portfolio or it should be let go. Sounds easy, right?
Let’s look at some sample tech stocks with buy recommendations and a very attractive potential return.
Consensus Cloud Solutions (CCSI)
Consensus Cloud Solutions, Inc. is a company that provides secure information delivery services through a scalable Software-as-a-Service(SaS) platform. The company also offers communication and digital signature solutions that enable its customers to securely and cooperatively exchange, access, and use information across organizational, national, and regional boundaries. Its offerings include:
- eFax Corporate
- Unite
- jSign
- Conductor
- Clarity
- eFax
eFax offers an online faxing service for customers and a variety of brands for a subscription, and eFax Corporate offers digital cloud fax technology. Unite allows users to choose between several protocols to send and receive healthcare information in an environment using a single platform. jSign offers digital signature and electronic signature solutions to businesses. Clarity uses artificial intelligence and natural language to process information, and Conductor is a robust interface engine that offers a complete interoperability platform.
Analyst Ratings
Analyst rate CCSI as a “Moderate Buy” based on 3 Strong buys and 2 Hold recommendations from analysts. The mean target price is set to $43.60 and a high target price of $50.00, an upside of 54.13%
Alteryx Inc. (AYX)
Alteryx Inc. is a software company that provides a subscription-based platform for its self-service data analytics. It enables its customers to prepare, blend and analyze data from many sources and optimize data-driven decisions. The Company’s platform is comprised of:
- Alteryx Designer
- Alteryx Server
- Alteryx Connect
- Alteryx Promote
- Alteryx Intelligence Suite
By expanding capabilities and analytical sophistication, the company focuses on democratizing access to data-driven insights to all data workers, programmers, business analysts, and data scientists. The company’s platform provides business analysts access to underlying data, applied analytics, and meta-data at any stage during its process. AYX's platform has been designed to interact with a wide variety of traditional data sources that are also capable of processing data from cloud applications. This includes Google Analytics, NetSuite, Marketo, Workday, and salesforce.com, as well as social media platforms like Facebook and Twitter.
Analyst Ratings
Analysts rate Alteryx Inc. as a “Moderate Buy” based on 9 Strong buys, 1 Moderate buy, and 5 Hold recommendations from analysts. The mean target price is set at $66.92 and a high target of $95.00, an upside of 201%!
Calyx Inc. (CALX)
Calix, Inc. is a company that provides cloud, software, and systems platform for clients alongside managed services. The company’s managed services focus on the subscriber-facing network that governs available bandwidth and determines the range of services that subscribers can offer. Their platform and managed services allowed broadband service providers (BSPs) of all sizes to elevate their businesses. The company gave BSP customers a platform to utilize real-time data and generate insights from the platform. The company’s products include:
- Calix Cloud - comes in 3 role-based editions for marketing, support, and operations.
- Calix Revenue EDGE - solution for subscriber-managed services.
- Calix Intelligent Access EDGE - access network solution for automated, intelligent networks.
Analyst Ratings
Analysts rate Calix Inc. as a “Strong Buy” based on 4 Strong buys, 1 Buy, and 1 Hold recommendation from analysts. The mean target price for CALX is set at $75.88 and a high target of $90.00, an upside of 81.52%.
Final Thoughts
Analyst ratings are one the best ways to help investors see how the market perceives any potential stock. However, investors should also understand that analysts can also be wrong. It is always a good idea to conduct your due diligence once you have a shortlist of stocks to be able to make informed decisions. Like in any form of investment, even though the potential profit is attractive, you can still lose money if you haven’t employed proper risk management and assessment.
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On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
