Amazon’s rally may be over but the stock market offers more attractive investment alternatives. Here are 3 tech stocks to evaluate right now.
The technology sector continues to experience extraordinary growth driven by e-commerce giants and digital services. However, Amazon’s high valuations and slowing growth are pushing investors to explore alternatives. In this context, the opportunity emerges to carefully evaluate 3 tech stocks which present solid fundamentals and attractive growth prospects, superior to those of the e-commerce giant.
Let’s see in detail why these tech companies if included in the portfolio, could be a strategic move in the long term, capable of surpassing Amazon’s performance.
1) Expedia Group (EXPE)
Expedia Group is the world’s second-largest online travel agency by reservations, with a wide range of services including accommodations, airline tickets, car rentals, cruises, and more. The company has consolidated its presence through renowned platforms such as Expedia.com, Hotels.com and Trivago and continues to thrive in the online travel market, with enormous growth potential that makes it particularly attractive to investors.
The company recently announced a $5 billion buyback plan, a move that not only reflects confidence in its long-term prospects but also suggests a solid commitment to maximizing shareholder value.
- Weekly graph Expedia
- Source: TeleTrader
Looking at fundamentals, EXPE is undervalued, with a non-GAAP forward PEG lower than the industry average and a price to cash flow multiple lower by 26.1%. These solid financials attest to robust business performance, with revenue and net profit in constant growth. The outlook for the fourth quarter continues on this positive trajectory, with analysts predicting further increases in revenue and EPS.
Recently Morgan Stanley maintained its “Equal-Weight” rating on the stock, raising the target price from $130.00 to $135.00, with a potential upside of 11% from current values.
2) Fiverr International (FVRR)
Fiverr International, listed on the NYSE, is a global marketplace based in Tel Aviv that connects freelancers with clients looking for a specific service. The recent introduction of NTRNL™, an innovative platform for sourcing internal talent, highlights FVRR’s ongoing commitment to evolving and adapting to market needs. Supporting this view, Fiverr’s financial ratings are solid, as demonstrated by a lower-than-industry-average P/E and notable growth in revenue and EBITDA.
- FVRR (NYSE) vs S&P 500
- Source: Fool.com
In the third quarter, FVRR reported revenue growth of 12.1% year-over-year and an increase in adjusted EBITDA of 152.3%. Forecasts for the fourth quarter indicate further revenue and EPS growth.
In its near-term forecast, Fiverr International expects fourth-quarter 2023 revenue of between $88.10 million and $95.10 million, compared to a consensus of $93.40 million. For the full year 2023, revenue is estimated to be between $358 and $365 million (consensus at $361.80 million).
Looking to the future, Fiverr International management expects a 10% increase in revenues: investors can therefore consider the current period as an opportunity to enter at advantageous prices, considering Fiverr’s disruptive potential in the sector.
3) Despegar.com (DESP)
Despegar.com, based in Buenos Aires, is an online travel company operating in Latin America and the United States.
In Q3 2023, the company reported record revenues of $178 million and 22% year-over-year growth. This notable success can be attributed to its diversification strategy and activities in the B2C, B2B, and B2B2C segments, with a particular emphasis on growing the B2B channel. One of the key elements that make Despegar a worthwhile investment is the strength of its financial fundamentals: the non-GAAP forward PEG is 40.6% lower than the industry average and the multiple EV /EBITDA forward is 48.3% lower, confirming the sustainability of its valuation and the potential for continued growth.
The company recently raised its annual revenue expectations, demonstrating growing confidence in its ability to generate profits. Analyst forecasts point to a positive outlook for the next fiscal year, with further increases in both revenue and EPS
- Despegar.com weekly graph
- Source: TeleTrader
| DISCLAIMER The information and considerations in this article should not be used as the sole or primary basis for making investment decisions. The reader retains full freedom in his own investment choices and full responsibility in making them since he alone knows his risk propensity and his time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public for savings. |
Original article published on Money.it Italy 2023-11-16 16:24:46. Original title: 3 azioni tech migliori di Amazon da valutare per l’acquisto
