The technology sector remains a driving force in the global economy, constantly pushing boundaries and shaping the future. So far in 2024, the sector has experienced a rollercoaster ride. While some companies hit new highs earlier in the year, the past few weeks have seen a period of consolidation and correction. The recent panic selling in early August has created a unique environment for many investors. These market fluctuations present attractive buying opportunities, especially in technology stocks.
Understandably, we must ask ourselves which technology stocks are best positioned to benefit from a potential next bull market. This August edition highlights three compelling technology stocks that could become winners in the next bull market. The current environment, marked by risks and opportunities, is ripe for strategic investing.
Here are three technology stocks to buy now for the next bull market.
Genpact (G)
We begin today’s discussion with Genpact (NYSE:G), a stock to consider for the next bull market. The professional services company provides business and technology services and serves diverse industries such as banking, healthcare and consumer goods in more than 30 countries.
In its first quarter 2024 earnings report, Genpact reported revenue of $1.13 billion, up 4% year over year. Diluted adjusted earnings per share increased 7% year over year to $0.73. This strong performance is due to the company’s new “3+1 Execution Framework,” which aims to strengthen partnerships and increase operational efficiency through artificial intelligence (AI). We should note that Genpact will release its second-quarter results on August 8.
Genpact recently partnered with ALDI SÜD to drive digital transformation in ALDI’s US and Australian offices. This long-term partnership ensures Genpact’s revenue stability and confirms its strategic direction. The company is also expanding its alliance with Advantage solutions (NASDAQ:ADV) to address financial and supply chain issues. In addition, the company has partnered with Volkswagen Financial Services (VWFS) to improve the customer experience in auto financing using AI solutions.
Shares have fallen nearly 7% since the beginning of the year. Genpact currently offers a dividend yield of 1.9%. At the same time, shares trade at 18.3 times forward earnings and 1.3 times sales. Analysts are projecting an average price target of $38 for G stock over the next 12 months, suggesting more than 17% upside potential.
Qorvo (QRVO)
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Next on our list of top tech stocks is the semiconductor company Qorvo (NASDAQ:QRVO). On July 30, Qorvo reported impressive results for the first quarter of fiscal 2025. Revenue increased 36% year over year to $887 million.
Investors noted that the company implemented cost and productivity initiatives to improve gross margins. As a result, net income and diluted earnings per share increased nearly 150% year over year, reaching $83.5 million and 87 cents, respectively.
For the second quarter of fiscal 2025, Qorvo forecasts diluted earnings per share between $1.75 and $1.95. Meanwhile, management is taking a conservative approach to AI, but expects to see notable design successes mid-quarter. Recently, Qorvo announced an innovative chip that simplifies network upgrades. In addition, the company has expanded its leadership position in RF multichip modules for advanced radar applications.
Since January, QRVO stock has fallen more than 8% and currently trades at 16.2 times forward earnings and 2.5 times sales. Analysts have created a 12-month median price forecast of $125, suggesting a potential upside of 21% from current levels. As the semiconductor industry continues to gain momentum in the coming quarters, Qorvo’s presence in key markets and its innovative solutions are a must for the next bull market.
Trimble (TRMB)
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Today’s list of top technology stocks is rounded off by Trimble (NASDAQ:TRMB), which provides advanced positioning solutions, software and services. Trimble, for example, provides products and services for geospatial professionals and those working in industries such as agriculture, construction, logistics and utilities. Trimble operates in four main areas: buildings and infrastructure, geospatial, resources and utilities, and transportation.
On August 6, Trimble reported its second quarter 2024 results. Revenue was $870.8 million, down 12% year over year, but up 1% organically. Annual recurring revenue (ARR) reached a record $2.11 billion, up 12% year over year. Adjusted diluted earnings per share were 62 cents, compared to 64 cents in the year-ago quarter. The company raised its full-year guidance following the completion of a joint venture with AGCO (NYSE:AGCO).
In May, Trimble acquired Flashtract, a technology provider that streamlines payment processes in the construction industry. This acquisition expands Trimble’s Construction One platform by integrating Flashtract’s technology, now called Trimble Pay. Trimble also announced a new asset lifecycle management software suite to improve capital project management. In addition, the company extended its partnership with Esri for geographic information systems (GIS) Software and mapping.
Year to date, TRMB shares are down 3% while the stock trades at 18.2 times forward earnings and 3.2 times sales. Still, Wall Street remains bullish, forecasting nearly 38% upside with a 12-month average price target of $71.
As of the publication date, Tezcan Gecgil had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s disclosure policies.
At the time of publication, the editor in charge did not hold any positions (either directly or indirectly) in the securities mentioned in this article.
