Tech stocks are booming right now, despite trade war fears.
Investors are continuing to pour money into the tech sector, which gives strength to the argument that the tech rally is far from over. Indeed, tech stocks have powered the S&P 500's (^GSPC) 9.6% rally so far this year. And even after the blip last week, the tech sector is already recovering following bullish remarks from the Fed.
With this in mind, we tapped into TipRanks
tool to find three top tech companies with a 'Strong Buy' analyst consensus rating. This tool allows us to find the stocks that are buzzing right now, i.e. stocks that have been rated by three or more analysts in the last few days.
Wedbush's Moshi Katri has just added Action Alerts PLUS holding PayPal (PYPL) - Get Report to Wedbush's 'Best Ideas List.' In the report, Katri lifted his price target on the digital payment giant from $90 to $100 (18% upside potential).
He lists three important growth catalysts for the stock. These are: (1) the recent acquisition of iZettle, which can 'significantly boost its merchant-facing business by providing an omnichannel platform'; (2) the social 'Pay-With-Venmo' payment feature, which can improve 'consumer-facing monetization efforts and volume trends'; and (3) Paypal's split with Ebay (EBAY) - Get Report . He sees this as a positive growth driver 'which can open new opportunities for PayPal in similar market places'.
At the same time, Katri draws attention to the fact that PayPal's is now moving to eliminate steering and share transaction data with the big credit card networks which should be a "significant" long-term growth driver.
Overall, Paypal has big support from the Street's top analysts right now. It has received 13 recent buy ratings vs four hold ratings, giving it an overall Strong Buy consensus. With data extracted from 17 best-performing analysts, the average 12-month price target is projected to be $89 (3% upside potential), with a high of $100 and low of $43.
Here's what PayPal CEO Dan Schulman just told TheStreet's Executive Editor Brian Sozzi.
U.S.-based software and data-crunching giant Splunk Inc. (SPLK) - Get Report has been gaining exposure for all the right reasons. One noteworthy headline is the recent acquisition of DevOps-owned incident management company, aptly named VictorOps. According to Splunk's President and CEO Doug Merritt, the $120 million purchase "will help modern development teams innovate faster and deliver better customer experiences."
Plus, five-star Oppenheimer analyst Shaul Eyal recently reinforced his Buy rating for Splunk, with a $130 price target (13% upside potential). After a meeting with investors, Eyal concluded "SPLK is maintaining its technological lead, introducing cutting-edge solutions and incorporating advanced capabilities. Most excitingly for FY18 (Jan. '18), the company closed ten mega orders (orders larger than $10 million) compared to only six deals during 2012-2017."
This supports Eyal's thesis that "rapid growth in cloud and subscription revenue is indicative of the favorable environment for SPLK and, in our view, momentum is building."
This year the computer giant has gained exposure for a stream of new services and tech upgrades. Nuatinx recently announced a new set of enterprise cloud platform-as-a-service (PaaS) offerings. According to the press release, these database services are designed "to streamline and automate database operations so database administrators (DBAs) can focus on business-driving initiatives." The market leading company recently announced its third quarter fiscal results. The company reported stellar revenue of $289.4 million, up 41% year-over-year from $205.7 million.
Unsurprisingly, Nutanix has also caught the attention of top analysts. Five-star Robert W. Baird analyst Jayson Noland recently said that "we view Nutanix as disruptive, as the hyper-converged market leader, and as the thought leader in hybrid cloud management." Noland has maintained his Buy rating on Nutanix, with a price target of $64.
However, Oppenheimer's Ittai Kidron has an even more bullish price target of $70. He writes "We believe the vision and product road-map are differentiated and will support a long runway of high growth (note ~40% CAGR in management's $3B/FY21 billings target)."
Overall, Nutanix also boasts a bullish Strong Buy consensus from the Street. Using data from 13 top-performing analysts, we can see that the stock has a 12-month price projection target of $63.
-Analysis by Jenny Lynton.
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