Goldman Sachs said this week that there are plenty of cheap tech stocks worth buying for their earnings. As of Friday, 92% of companies in the S&P 500 had reported quarterly results, with 79% beating profit estimates, according to FactSet. FactSet senior profitability analyst John Butters said the information technology industry’s annual profit growth rate was 23.2%. CNBC Pro compiled research from Goldman Sachs to find the most undervalued tech stocks with a Buy rating. They include Microsoft, Teledyne Technologies, Arista Networks, Toast and AppLovin. Don’t miss out on Teledyne stock, says Goldman Sachs. The company manufactures electronic components, including avionics systems for commercial aircraft. Analyst Noah Poponak called the company a “long-term cash flow compounder” that’s also well-positioned for growth. “Growth should accelerate in 2H24 and then be easily visible in 2025, while margins can expand and there is room to deploy capital,” he wrote. Despite the profit miss, Poponak said the company The stock is trading too cheap to ignore. In fact, shares are down nearly 12% this year. “We will take advantage of the pullback and maintain our buy rating on the stock,” he said. Analyst Kash Rangan said the tech giant has further upside to come after its late-April earnings report Space. ’s suite of AI services and productivity-centric focus leverage its Azure-built playbooks in an efficient manner. “We believe Microsoft is one of the most attractive investment opportunities in the technology industry and across industries,” Arista said when talking about its first-quarter earnings report earlier this week. The company said there will be a series of positive catalysts in the coming months as artificial intelligence begins to take center stage. Ng said demand trends are improving and “revenue visibility” is rising. This, analysts say, led Ng to conclude that the company should beat revenue expectations in the coming quarters and that margins are also improving, suggesting second-quarter revenue of $1.62 billion to $1.65 billion. between. … Growth should accelerate in 2H24 and then easily see growth in 2025, while margins can expand and there is room for capital deployment. … We will take advantage of the pullback and maintain our Buy rating on the stock. …The company is well-positioned to capture Gen-AI revenue share through its broad suite of AI services and productivity-focused focus on leveraging its Azure-built playbook in an efficient manner. … We believe Microsoft represents one of the most compelling investment opportunities in technology and across industries. and the company is confident in its net growth trajectory. …All in all, we believe TOST is the undisputed leader in next-generation restaurant software, and the main headwind since the IPO has been TOST’s positional growth runway number in its TAM restaurants. Demand trends have improved, with 6-month revenue visibility for 2H revenue accelerating. While this is a headwind for the gross margin mix, Cloud Titan’s investments in public cloud have improved as spending has balanced out beyond just artificial intelligence. Second, ANET is increasingly confident in its AI position and its 2025 AI revenue target of over $750 million. Confidence in future growth opportunities at greater advertiser scale, new ad formats and verticals, and improvements in underlying AI models – we believe we expect APP to continue growing above industry average and with strong revenue growth over the next few years Margins are compounding and we see new growth opportunities to complement this growth outlook. We reiterate our buy rating and raise our target price from $73 to $100.
