5 Oversold Tech Stocks To Buy

In this article, we discuss the 5 oversold tech stocks to buy. To read the detailed analysis of the technology services industry, go directly to the 10 Oversold Tech Stocks To Buy.

5. ZoomInfo Technologies Inc. (NASDAQ:ZI)

14-day RSI as of August 2: 24.93

ZoomInfo Technologies Inc. (NASDAQ:ZI) is an American technology company providing software as a service. It is on our list of best growth stocks under $25. ZoomInfo Technologies Inc. (NASDAQ:ZI)’s main product is its specialized search engine that provides financial and contact information about businesses in the US and internationally.

In the first quarter of 2023, ZoomInfo Technologies Inc. (NASDAQ:ZI) was a part of 40 investment portfolios at a combined stake value of $849.325 million. HMI Capital increased its holdings in the company by 405% in the quarter to become the most prominent hedge fund holder of the company. HMI held over 8.166 million shares of the company, valued at over $201.79 million.

On June 28, Needham initiated ZoomInfo Technologies Inc. (NASDAQ:ZI)’s coverage with a Buy rating and a price target of $35.

4. IPG Photonics Corporation (NASDAQ:IPGP)

14-day RSI as of August 2: 24.07

IPG Photonics Corporation (NASDAQ:IPGP) is a Massachusetts-based company that develops optical fiber lasers. The company manufactures its products in the United States, Germany, and Italy and serves globally.

IPG Photonics Corporation (NASDAQ:IPGP) released its Q2 earnings report on August 1, reporting GAAP EPS of $1.31 compared to $1.38 analyst estimates. The company generated a revenue of $340 million showing an almost 10% year-over-year decline. Despite the decline, Raymond James analyst Brian Gesuale upgraded IPG Photonics Corporation (NASDAQ:IPGP) stock to Strong Buy from Outperform with a $170 price target. The analyst wrote:

“Importantly, our expectation of a robust EV battery capacity tailwind is still intact and all checks continue to point to a multi-year upgrade cycle that will position IPGP for sustainable growth through the end of the decade – a dynamic we believe is largely underappreciated in Street models.”

For the full year 2023, IPG Photonics Corporation (NASDAQ:IPGP) provided a revenue outlook of $300 million to $330 million and earnings per diluted share in the range of $0.85 to $1.15.

3. Perficient, Inc. (NASDAQ:PRFT)

14-day RSI as of August 2: 22.70

Perficient, Inc. (NASDAQ:PRFT) is an IT and consulting company providing digital consultancy services and solutions in the US. The company has been covered by 7 analysts in the last three months with an average price target of $77.00. The lowest forecast is $69.00 which shows a 15% upside to the stock price at the time of market opening on August 2. 

In the first quarter of 2023, 21 hedge funds held a stake in Perficient, Inc. (NASDAQ:PRFT), valued at $109.663 million, compared to 17 hedge funds worth $99.450 million in the previous quarter. Blue Grotto Capital held the largest stake in the company in Q1 with 638,523 shares worth $46.09 million.

In the second quarter of 2023, Perficient, Inc. (NASDAQ:PRFT)’s revenue increased by nearly 4% year-over-year to $231.1 million. The company reported solid earnings with a net income of $26.4 million. However, it was below the Q2 2022 values of $27.8 million.

2. TELUS International (Cda) Inc. (NYSE:TIXT)

14-day RSI as of August 2: 17.50

TELUS International (Cda) Inc. (NYSE:TIXT) is a Canadian tech company and a subsidiary of TELUS Corporation (NYSE:TU). The company provides digital IT services, software services, and business process outsourcing. The company operates in 31 countries. TELUS International (Cda) Inc. (NYSE:TIXT) is based in Vancouver, Canada but has delivery centers across North and Central America, Europe, Africa, and Asia.

TELUS International (Cda) Inc. (NYSE:TIXT) will announce its Q2 financial report on August 4 but released its preliminary view on July 14. The company’s revenue is expected to be in the range of $660 million to $668 million, representing a growth of 6% to 7% on a constant currency basis. The company also expects a severe decline in income at a net loss of $7 million to $10 million, registering a decline of 113% to 118%. The company’s CEO, Jeff Puritt said that TELUS International (Cda) Inc. (NYSE:TIXT) experienced unexpected reductions in service demand from some of the larger clients. The CFO Vanessa Kanu added:

“The magnitude of the headwinds we’re experiencing and our preview of second-quarter performance data prompted a revision to the full-year outlook for 2023 to better reflect our updated expectations for the remainder of the year. We’ve actioned significant cost efficiency programs, including staff reductions to address lower service volumes in the technology vertical. Additionally, we are driving further automation and generative AI-enabled solutions to further optimize our cost structure. The benefits of these efficiency programs will help mitigate the near-term challenges we are facing. Moreover, we do see meaningful opportunities as it relates to digital transformation, generative AI adoption, and the continuing critical importance of differentiated digital customer experience solutions in the market that we believe will be a tailwind for TELUS International’s long-term growth and profitability.”

1. Euronet Worldwide, Inc. (NASDAQ:EEFT)

14-day RSI as of August 2: 17.18

Euronet Worldwide, Inc. (NASDAQ:EEFT) is a Kansas-based provider of electronic payment services including automated teller machines, point-of-sale services, and credit/debit card services. It is one of the biggest payment companies in the world.

Our hedge fund database shows that 28 hedge funds held a stake in Euronet Worldwide, Inc. (NASDAQ:EEFT) at a combined total of $278.240. Robert Karr’s Joho Capital held 413,659 of the company shares worth $46.288 million, making it Euronet Worldwide, Inc. (NASDAQ:EEFT)’s biggest hedge fund holder in the first quarter.

On July 27, Truist analyst Andrew Jeffrey reaffirmed a Buy rating on Euronet Worldwide, Inc. (NASDAQ:EEFT) with a $120 price target, down from $155.

Here is what ClearBridge Investments has to say about Euronet Worldwide, Inc. (NASDAQ:EEFT) in its Q3 2022 investor letter:

“We took advantage of the selloff in the IT sector to initiate a new position in Euronet Worldwide (NASDAQ:EEFT). The company is a global leader in providing payment and transaction processing and distribution solutions to financial institutions, retailers, merchants and individual consumers through ATM networks, point-of-sale management and fraud management, among other services. Transaction volumes within the company’s highly profitable consumer ATM business suffered significantly over the last two years as a result of COVID-19 lockdowns and shelter-in-place restrictions, but we see tremendous opportunities for this business segment to fully recover over the next two years and lead to further improvements in the share price.”

You can also look at the 50 Perfume Award Winners In The Last 10 Years and Jim Cramer’s 10 S&P 500 Stock Picks for 2023.

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