Wall Street will soar to new heights in 2024, buoyed by a robust U.S. economy and investor interest in advances in artificial intelligence. S&P 500 The index rose more than 15%, but was dominated by tech stocks. Nasdaq Composite Index The index is up more than 18% since the start of the year, a spectacular rally that has spurred investor interest in buying tech stocks in July despite concerns that the market may have peaked.
Expected earnings growth and the possibility of interest rate cuts by the Federal Reserve are fueling further optimism. In other words, despite the recent rally, there are still potential opportunities to carve out strategic positions within the technology sector. By getting in early, investors can capitalize on the growth potential of innovative companies and maximize profits as these stocks rise.
Amdox (DOX)
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Our list of the top tech stocks to buy is Amdocs (Nasdaq:DocksThe company provides software and services for the global communications, media and entertainment sectors, with solutions including customer experience systems, network automation and cloud-native services.
In the second quarter of 2024, Amdocs reported record revenue of $1.25 billion, up 2% year over year on a constant currency basis. Adjusted earnings per share were $1.56, up from $1.47 a year ago but slightly below analyst expectations.
Management expects robust demand for Amdocs’ innovative solutions, particularly in cloud services, to support double-digit revenue growth in 2024. The company is also targeting double-digit EPS growth.
Recently, Amdocs Alphabetical (Nasdaq:GoogleNasdaq:Google) Partnering with Google Cloud to streamline eSIM activation for remote device management and improved customer satisfaction. Virgin Media O2,Japanese JCOMand Paramount Global (Nasdaq:Para) into MTV’s business in Japan will further strengthen the company’s market position.
Despite a 13% decline in 2024, DOX stock remains a strong dividend growth stock with a 2.5% yield. The stock currently trades at 10.6x forward earnings and 1.8x sales, which could make it an attractive valuation for long-term investors. Analysts have a 12-month average price forecast for Amdocs stock of $100.00, suggesting upside potential of over 30%.
Axcelis Technologies (ACLS)
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Next on our list of tech stocks to buy today Axcelis Technologies (Nasdaq:ACLS) designs the ion implantation systems that are essential to the manufacture of semiconductor chips. The company’s product portfolio includes high-energy, high-current and medium-current implanters, as well as after-sales services.
In its latest earnings report, Axcelis reported revenue of $252.4 million, slightly lower than the year-ago quarter but above expectations. Diluted earnings per share increased 10% to $1.57 on improved gross margins. The company has approximately $134 million in cash, $396 million in short-term investments, and no outstanding debt.
Valued at $545 billion in 2023, the global semiconductor sector is expected to grow at a compound annual rate of 7.6% from 2024 to 2033, driven by AI, the Internet of Things (IoT) and 5G technologies. Axcelis’ leadership in ion implantation has ensured stable demand for products such as its Purion Power series. Despite fluctuating demand for silicon carbide due to slowing adoption of electric vehicles, Axcelis is positioned for long-term growth in a dynamic market.
ACLS shares have risen nearly 9% since January and are trading at a price-to-sales multiple (P/S) of 4. Analysts have a median 12-month price target for Axcelis of $150, which suggests a 6% upside from current levels.
CrowdStrike (CRWD)
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For today’s roundup of trending tech stocks, we’ll be looking at cybersecurity companies. Crowdstrike (Nasdaq:CRWDThe company’s Falcon platform uses AI and machine learning to rapidly detect, prevent and respond to cyber threats.
CrowdStrike’s first quarter fiscal 2025 earnings showed solid growth, with revenue up 33% year over year to $921 million. Annual recurring revenue also grew 33% to $3.65 billion, with net new annual recurring revenue increasing by $211.7 million in the quarter. Adjusted diluted EPS rose to 93 cents from 57 cents last year. The company delivered record free cash flow of $322 million, representing 35% of sales, and raised its fiscal 2025 guidance.
As a leader in cloud-based cybersecurity solutions, CrowdStrike benefits from strategic partnerships with technology giants such as Google Cloud. Amazon (Nasdaq:Amazon)’s Amazon Web Services (AWS) and NVIDIA (Nasdaq:NVDA). Notably, AWS has ramped up its cybersecurity efforts around CRWD, Nvidia has endorsed its Falcon platform, and CrowdStrike has expanded its services beyond core cybersecurity, moving into endpoint and identity protection and cloud security.
So far in 2024, CRWD shares have soared more than 53%, hitting an all-time high on June 17. Despite trading at a premium valuation of 97.1 times forward adjusted earnings and 29.3 times sales, Wall Street remains optimistic, with a 12-month price target of $400, suggesting potential upside of more than 2%.
As of the publication date of this article, Tezcan Gecgil holds both long and short positions in NVDA. Opinions expressed in this article are those of the author and follow InvestorPlace.com’s publication guidelines.
