Unlock Massive Gains: 3 Tech Stocks With Outstanding Value Propositions for 2024
Autonomous systems, AI, quantum computing, and other groundbreaking technologies continue to redefine the way we live and interact. For those searching for the best tech stocks to buy, though, this ever-evolving landscape presents both challenges and opportunities.
While the allure of tech growth stocks is hard to deny, savvy investors are increasingly turning their attention to tech value stocks. Such stocks possess solid fundamentals and are typically undervalued compared to their intrinsic worth.
However, with rapid shifts in technology, it’s imperative for investors to effectively identify tech companies that only have enduring competitive advantages. But, they also continue to operate in rapidly expanding total addressable markets.
Allocation to these value tech stocks is prudent and can also offer significant upside potential.
Deere (DE)
Amidst a backdrop of buoyant agricultural conditions, Deere (NYSE:DE) continues to reap significant benefits. It rides the wave of sustained demand for farm equipment.
The company witnessed a healthy uptick in sales, mainly in the U.S. and Canada. Large agricultural equipment sales alone are expected to climb a remarkably impressive 10% in fiscal 2023.
Transitioning to the construction and forestry realms, Deere shines just as brightly. The surge in retail demand and rental re-fleeting has led to a spree of hearty shipments. Highlighting its recent triumphs, Deere’s Q3 GAAP EPS of $10.20 beat market estimates by $2.02. In addition, a 12.1% revenue bump year over year (YOY) to $15.8 billion stands testament to its financial might.
Furthermore, TipRanks analysts echo this bullish sentiment, presenting DE with a promising moderate buy rating. The cherry on top is an impressive 1.4% yield while trading at just 1.8 times forward sales estimates.
Jabil (JBL)
Jabil (NYSE:JBL), the Florida-based electronics powerhouse, continues to make major waves in the tech sphere. The stock is soaring, marking over an 80% bump in value this year alone.
Interestingly, a quarter of this rally occurred after its strategic announcement in September. That plan involves selling off its mobile electronics manufacturing arm to Chinese automaker BYD (OTCMKTS:BYDDY) for a whopping $2.2 billion.
Collaborations with industry behemoths, including Amazon Web Services (AWS), Tesla (NASDAQ:TSLA), are clear indicators of its upward trajectory. Diving deeper, its venture into the renewable energy arena speaks volumes of its visionary approach.
Moreover, the pivot toward a consignment model, especially as it gears up for the AI server racks shipment to Amazon, bodes well for further margin improvements. And its powerful healthcare arm is not to be outdone. Fueled by partnerships with industry giants, it promises to be a revenue-generating powerhouse in the near future. JBL stock trades at around 8 times forward cash flows, 58% lower than the sector median.
TEGNA (TGNA)
TEGNA (NYSE:TGNA) is effectively carving its niche as a forward-thinking media enterprise.
It effectively blends the worlds of traditional broadcasting and digital innovation. Underscoring its shareholder commitment, TEGNA is likely to initiate its second-ever accelerated share repurchase, according to the release of its Q3 earnings worth $325 million. Additionally, its recent decision to ramp up its dividend payout by a significant 20%, with a dividend yield of 3.20%, speaks volumes about its financial confidence.
However, the horizon holds more promise for TEGNA as 2024 approaches. The whirlwind of election activity promises to be a major tailwind for this media titan. Navigating through challenges, the company demonstrated resilience following a merger setback due to regulatory hurdles.
Instead of being deterred, TEGNA pivoted with determination, emphasizing robust shareholder returns through strategic share repurchases and generous dividends. Its transition to the digital realm, especially its foray into the burgeoning over-the-top streaming domain, is a catalyst for long-term subscription-led revenue growth.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
