The technology-heavy Nasdaq-Composite The index has officially entered correction zone after falling more than 10% from its record high reached just a few weeks ago in July. Many high-flying technology stocks, which have seen massive price increases over the past two years, have been hit hardest by the recent market crisis.
However, not all tech stocks are down. In fact, despite the general sell-off on the Nasdaq, some tech stocks have remained quite resilient and are still trading in positive territory. Many of these stocks could still rise further as their valuations still seem reasonable. And that’s even true when investors consider the recent gains in these stocks. If the overall market regains its footing and recovers from the recent correction, that could provide additional tailwinds and increase their momentum.
That’s why I think it makes sense to highlight some standout tech stocks that are bucking the downtrend and ignoring the Nasdaq’s ongoing weakness. Here are three bullish tech stocks that I think can continue to rise from here.
CACI International (CACI)
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CACI (NYSE:CACI) is one of the most consistent and stable companies around. The company has posted consistent profits over the past few months, largely due to CACI’s strong growth in the public sector. Government contracts are some of the most difficult contracts a company can have, and they often come with high margins.
That’s why CACI investors have basically ignored the recent sell-offs in these technology companies. In fact, a 26.7% increase in the last six months alone speaks to the fundamental strength of this company. And more importantly, the company has been delivering strong results recently. CACI beat second-quarter revenue estimates by 5.5%.
In the fourth quarter of 2024, CACI reported a 20% increase in revenue. For the full fiscal year, revenue increased 14%, beating expectations. And nearly 60% of the record $14 billion in orders were for repeat business. The company currently has an impressive backlog of $28.6 billion.
Analysts are also optimistic about this stock. In the last quarter, Cai von Rumohr of TD Cowen, Seth Seifman of JP Morgan and Tobey Sommer of Truist Securities raised their price targets for the stock.
When you combine CACI’s solid fundamentals with the fact that the company has a history of beating expectations, I believe this under-the-radar stock will continue to rise.
IBM (IBM)
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IBM (NYSE:IBM) experienced a brief sell-off earlier this year. However, IBM stock has recovered nicely, delivering impressive returns to patient investors. Over the past year, IBM shares have risen more than 35%. I believe Big Blue can continue its upward trend as it shifts its focus from slow-growing consulting to high-growth areas like cloud computing and quantum computing.
The latter area in particular could be critical for IBM in the long run. As AI becomes more sophisticated, it will require enormous computing power. Quantum computing is one technology that seems to meet this need. IBM’s investments in this cutting-edge technology are well positioned for the future.
In addition, IBM remains a cash cow, generating free cash flow of $4.5 billion in the first half of 2024 alone. The company also rewards its shareholders with a generous dividend yield of 3.5%.
I’m not surprised IBM stock is doing so well. About two years ago, I pointed out that the company was focusing on high-growth industries. It’s encouraging to see that thesis has played out so well so far.
GoDaddy (GDDY)
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GoDaddy (NYSE:Good morning) offers domain registration and web hosting services for small businesses. The company has recently made progress in its transition and is now focusing more on AI-powered e-commerce features and moving beyond just selling domains and web hosting.
Revenue from the company’s core segment was flat at $2.8 billion, so I believe this strategic shift has breathed new life into GoDaddy’s growth story. Notably, GDDY stock is up 116% over the past year with no signs of growth slowing. Even the recent sell-off in the tech sector hasn’t dampened GoDaddy’s momentum.
In its latest earnings report, GoDaddy reported revenue of $1.12 billion, beating expectations. Net income rose to $146 million. Bookings also rose over 10% to $1.26 billion. Analysts are praising GoDaddy as an “essential one-stop shop for small businesses,” and some are recommending buying the stock with price targets as high as $190 per share.
I think this rally can continue for GoDaddy investors. In fact, the company’s valuation seems quite reasonable for a technology stock with this kind of growth.
At the time of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions 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.
