In this article, we discuss the 5 best tech stocks to buy on the dip. If you want to read our detailed analysis of these stocks, go directly to 12 Best Tech Stocks To Buy On the Dip.
5. Tower Semiconductor Ltd. (NASDAQ:TSEM)
Number of Hedge Fund Holders: 31
Decline in Share Price YTD: 31%
Tower Semiconductor Ltd. (NASDAQ:TSEM) focuses on specialty process technologies to manufacture analog intensive mixed-signal semiconductor devices. On November 14, investment advisory Craig-Hallum maintained a Buy rating on Tower Semiconductor Ltd. (NASDAQ:TSEM) stock and lowered the price target to $33 from $38.
At the end of the third quarter of 2023, 31 hedge funds in the database of Insider Monkey held stakes worth $402 million in Tower Semiconductor Ltd. (NASDAQ:TSEM), compared to 38 in the preceding quarter worth $561 million.
4. Shoals Technologies Group, Inc. (NASDAQ:SHLS)
Number of Hedge Fund Holders: 33
Decline in Share Price YTD: 36%
Shoals Technologies Group, Inc. (NASDAQ:SHLS) provides electrical balance of system (EBOS) solutions and components for solar, battery energy, and electric vehicle charging applications. On December 19, investment advisory Piper Sandler maintained an Overweight rating on Shoals Technologies Group, Inc. (NASDAQ:SHLS) stock and lowered the price target to $20 from $28.
At the end of the third quarter of 2023, 33 hedge funds in the database of Insider Monkey held stakes worth $349 million in Shoals Technologies Group, Inc. (NASDAQ:SHLS), compared to 24 in the preceding quarter worth $394 million.
In its Q3 2023 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Shoals Technologies Group, Inc. (NASDAQ:SHLS) was one of them. Here is what the fund said:
“Solar energy technology companies SolarEdge and Shoals Technologies Group, Inc. (NASDAQ:SHLS), meanwhile, saw headwinds from destocking in the U.S. and Europe. U.S. demand could slow further due to new net metering rules that reduce the value to consumers from sending excess residential solar energy back to the grid. SolarEdge, which makes inverters for solar systems as well as residential and commercial battery systems, is also facing rising battery competition in the U.S. from Tesla.”
3. Enphase Energy, Inc. (NASDAQ:ENPH)
Number of Hedge Fund Holders: 40
Decline in Share Price YTD: 49%
Enphase Energy, Inc. (NASDAQ:ENPH) markets home energy solutions and has operations across the world. On December 19, investment advisory Piper Sandler maintained a Neutral rating on Enphase Energy, Inc. (NASDAQ:ENPH) stock and raised the price target to $120 from $75.
At the end of the third quarter of 2023, 40 hedge funds in the database of Insider Monkey held stakes worth $521 million in Enphase Energy, Inc. (NASDAQ:ENPH), compared to 50 the preceding quarter worth $772 million.
2. Paycom Software, Inc. (NYSE:PAYC)
Number of Hedge Fund Holders: 43
Decline in Share Price YTD: 33%
Paycom Software, Inc. (NYSE:PAYC) provides cloud-based human capital management solutions. On December 1, investment advisory Barclays maintained an Equal Weight rating on Paycom Software, Inc. (NYSE:PAYC) stock and lowered the price target to $193 from $200.
At the end of the third quarter of 2023, 43 hedge funds in the database of Insider Monkey held stakes worth $829 million in Paycom Software, Inc. (NYSE:PAYC), compared to 40 in the previous quarter worth $1 billion.
In its Q3 2023 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Paycom Software, Inc. (NYSE:PAYC) was one of them. Here is what the fund said:
“The most significant detractors from the Portfolio’s relative performance in the quarter included Farfetch, Doximity, and Paycom Software, Inc. (NYSE:PAYC).
Paycom, a leading provider of cloud-based human capital management software for small and mid-sized businesses, was another detractor in the period. Despite reporting positive results, the investors seemed concerned about the company’s performance in the year’s second half. As a result, the stock fell by almost 20% on the day of the report. However, the company is committed to investing in its BETI platform to onboard more customers, which may have a short-term negative impact on revenues. But, in the long run, it can benefit the company’s margins. Our positive long-term outlook remains unchanged. We still believe the company has an attractive growth potential in a large addressable market.”
1. ZoomInfo Technologies Inc. (NASDAQ:ZI)
Number of Hedge Fund Holders: 44
Decline in Share Price YTD: 37%
ZoomInfo Technologies Inc. (NASDAQ:ZI) owns and runs a market intelligence platform. On December 1, investment advisory Barclays maintained an Overweight rating on ZoomInfo Technologies Inc. (NASDAQ:ZI) stock and lowered the price target to $18 from $19.
At the end of the third quarter of 2023, 44 hedge funds in the database of Insider Monkey held stakes worth $808 million in ZoomInfo Technologies Inc. (NASDAQ:ZI), up from 42 in the preceding quarter worth $1 billion.
In its Q2 2023 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and ZoomInfo Technologies Inc. (NASDAQ:ZI) was one of them. Here is what the fund said:
“ZoomInfo Technologies Inc. (NASDAQ:ZI) provides go-to-market business intelligence software. We took advantage of continued weakness in ZoomInfo shares to rebuild our position at attractive prices following tax-loss sales earlier in the year. ZoomInfo is a highly profitable and cash-generative business with the most comprehensive platform of software and data to improve the go-to-market efforts of its customers, not to mention new products in the marketing and talent-acquisition verticals. When the macro headwinds abate, we believe ZoomInfo will accelerate growth as it continues to penetrate its $70 billion-plus total addressable market.”
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