In this article, we will take a look at the 5 most promising tech stocks according to analysts. To see more such companies, go directly to 12 Most Promising Tech Stocks According to Analysts.
5. Zoom Video Communications, Inc. (NASDAQ:ZM)
One-Year Price Target: 85.74
Zoom Video Communications, Inc. (NASDAQ:ZM) has rebounded in 2023 thanks to the broader rally in tech stocks as well as the company’s plans to cut costs and improve its revenue. Zoom Video Communications, Inc. (NASDAQ:ZM) reportedly announced plans to cut 15% of its workforce. Last month, Barclays noted that Zoom Video Communications, Inc. (NASDAQ:ZM) was preparing to increase the price of its Zoom One Pro Plan.
As of the end of the third quarter of 2022, 50 hedge funds had stakes in Zoom Video Communications, Inc. (NASDAQ:ZM), up from 37 hedge funds in the previous quarter.
4. Sony Group Corporation (NYSE:SONY)
One-Year Price Target: 133.55
Sony Group Corporation (NYSE:SONY) is one of the biggest tech conglomerates that are poised to thrive because of their diversified income streams. Sony Group Corporation (NYSE:SONY)’s gaming business has been under pressure amid a broader slowness in the industry. However, analysts believe Sony Group Corporation (NYSE:SONY) has long-term growth catalysts because of Sony’s expansion in EVs, its strengths in digital entertainment, movies and music industry.
Recently, investment firm Cowen’s analyst Doug Creutz increased his price target for Sony Group Corporation (NYSE:SONY) shares to $118 from $102 and kept an Outperform rating.
Of the 920 hedge funds tracked by Insider Monkey, 27 hedge funds had stakes in Sony Group Corporation (NYSE:SONY). The total value of these hedge funds’ stakes was over $706 million.
Aristotle Capital made the following comment about Sony Group Corporation (NYSE:SONY) in its Q3 2022 investor letter:
“Sony Group Corporation (NYSE:SONY), the global provider of video games and consoles, image sensors, and music, as well as movies, was a major detractor for the period. The share price of the company has struggled this year following its strong performance in 2021. Signs of a slowdown in the gaming industry (as people seem inclined to take on outdoor activities as pandemic fears have subsided), combined with sales of its PlayStation 5 that have been held up by a global parts shortage, have led to gaming‐related software sales falling more than 20% year‐over‐year. Rather than focusing on short‐term demand dislocations, we focus on the company’s ability to continue migrating videogame users toward the firm’s subscription offerings, as well as its capacity to leverage content across its video, music and gaming platforms. We are also impressed with the expansion of Sony’s Music segment, which has been supported by the pervasiveness of streaming services. Management’s ongoing work to improve the company’s TV and film studios is bearing fruit as well, with sales growing 67% year‐over‐year for its Pictures segment as its regional strategy has taken hold, including recent progress made toward solidifying a merger plan with India‐based Zee Entertainment. All of this is to say we remain excited by the oligopolistic nature of the businesses Sony operates in, and the future prospects for the company given its leadership in image sensors, music publishing and gaming consoles.”
3. CrowdStrike Holdings, Inc. (NASDAQ:CRWD)
One-Year Price Target: 167.51
Cybersecurity company CrowdStrike Holdings, Inc. (NASDAQ:CRWD) shares have gained about 8% year to date in 2023 through February 13. However, CrowdStrike Holdings, Inc. (NASDAQ:CRWD)’s average price target of $167.51 shows strong upside potential from the current levels. Last month, CrowdStrike Holdings, Inc. (NASDAQ:CRWD) gained after BMO Capital Markets analyst Keith Bachman started covering the stock with an Outperform rating. The analyst mentioned CrowdStrike Holdings, Inc. (NASDAQ:CRWD)’s endpoint security products and its expanding platform of services and said that the company has the potential to compete against Microsoft Corporation (NASDAQ:MSFT) and other rivals.
The analyst thinks CrowdStrike Holdings, Inc. (NASDAQ:CRWD) should use its endpoint services to become one of the leading network security providers.
Hedge fund sentiment is strong for CrowdStrike Holdings, Inc. (NASDAQ:CRWD). At the end of the third quarter of 2022, 85 hedge funds tracked by Insider Monkey reported owning stakes in CrowdStrike Holdings, Inc. (NASDAQ:CRWD), up from 78 funds in the previous quarter. The biggest stakeholder of CrowdStrike Holdings, Inc. (NASDAQ:CRWD) during this period was David Goel and Paul Ferri’s Matrix Capital Management which owns a $494 million stake in the company.
Carillon Tower Advisors made the following comment about CrowdStrike Holdings, Inc. (NASDAQ:CRWD) in its Q4 2022 investor letter:
“CrowdStrike Holdings, Inc. (NASDAQ:CRWD), a provider of cyber security software solutions, delivered quarterly results that exceeded expectations, but provided guidance that disappointed, as the macro economy is causing longer sales cycles and some larger orders are being sold in smaller pieces. However, these deals are not being lost to competitors; they are just being delayed, and management expects enterprise security spending to remain relatively resilient in 2023.”
2. Meta Platforms, Inc. (NASDAQ:META)
One-Year Price Target: 212.44
Meta Platforms, Inc. (NASDAQ:META) is back in action as the company’s latest quarterly results showed growth might be returning to Facebook. Meta Platforms, Inc. (NASDAQ:META) also has investments in the AI space which could benefit it in the short and long term as AI wars begin. Recently, Tigress Financial Partners analyst Ivan Feinseth gave bullish comments about Meta Platforms, Inc. (NASDAQ:META)’s user growth and AI investments in a note. The analyst said that Meta Platforms, Inc. (NASDAQ:META)’s “most valuable asset” is its “massive and ever-growing” user base. The analyst thinks Meta Platforms, Inc. (NASDAQ:META) can monetize its family of apps and new product features.
Vulcan Value Partners made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its Q4 2022 investor letter:
“During the quarter we sold Meta Platforms, Inc. (NASDAQ:META) after owning the business for over four years. The fundamentals of our investment case were based on the tremendous number of users that spent time on its various properties and the advertising dollars that flowed to the company as a result. We believed its competitive advantage was that the platform was, more or less, a monopoly on people’s time and attention. The rise of TikTok and other emerging platforms has given us pause on the company’s ability to maximize that advantage. From our perspective, the idea of “one platform to rule them all” may now be a thing of the past as social offerings have become more fragmented.
In addition, though our research has indicated that much of the initial damage done from Apple’s iOS 14.5 privacy changes has been repaired, we remain concerned with Apple’s influence over the digital advertising ecosystem. Apple is one of the largest gatekeepers to Meta’s mobile services, and it has become more difficult for us to gauge the pace of change emerging from Apple relating to privacy, as well as evaluating Apple’s ambitions in advertising…” (Click here to read the full text)
1. Microsoft Corporation (NASDAQ:MSFT)
One-Year Price Target: 284.73
Microsoft Corporation (NASDAQ:MSFT) is one of the most popular stocks among the Wall Street analysts and hedge funds. Microsoft Corporation (NASDAQ:MSFT) is making waves in 2023 amid the company’s huge investments in AI and Satya Nadella’s ambitious plans to revamp Bing search. Microsoft Corporation (NASDAQ:MSFT) recently started rolling out ChatGPT-powered Bing search features for desktop users. As of 16:09 PM ET, February 13, MSFT shares were trading at around $271. The Wall Street analysts’ average price target of $284 shows significant upside potential.
Polen Global Growth Strategy made the following comment about Microsoft Corporation (NASDAQ:MSFT) in its Q4 2022 investor letter:
“In the case of Microsoft Corporation (NASDAQ:MSFT), the company is performing very well. Azure now represents nearly 25% of the total business and continues to compound at a higher rate. Although growth is moderating a bit recently (as it is for AWS and Google Cloud Platform as well), these three platforms collectively generated more than $140 billion in revenue during the last 12 months and are still growing at a healthy rate. Further, Microsoft Cloud, or commercial cloud (which includes Azure and other cloud services, Office 365 Commercial, the commercial portion of LinkedIn, Dynamics 365, and other cloud properties) continues to grow roughly 30% and is now about half the business. Mathematically, commercial cloud could decelerate to 20% growth with all other segments decelerating to zero growth and total company revenue growth would still be at least double digits. We believe Microsoft is positioned to compound underlying earnings per share at a midteens rate over the next five years. At 22x earnings, we felt the valuation was attractive and that it should be a large position.”
You can also take a peek at 10 Hot Tech Stocks To Buy Now and 10 Hot Healthcare Stocks To Buy Now.
