Tech Stocks Show Potential Despite Market Challenges

Tech stocks are turning heads as investors seek value in bear markets. Equifax meets EPS estimates while analysts predict strong upside for ServiceNow, Zscaler, and Taiwan Semiconductor, signaling potential opportunities for long-term growth.

Date: 22-03-2025

AI Rating: 7

Investment Opportunities in a Bear Market

As the report highlights, the current bear market presents unique opportunities for investors looking to buy strong companies at lower prices. This sentiment is echoed across various tech stocks, indicating areas of potential growth even amidst market dips.

Equifax (NYSE: EFX)

Equifax recently met its EPS estimates, which can reflect positively on its overall financial health. However, the company has faced significant challenges, including an antitrust lawsuit and a settlement requiring a $15 million payout. Shares are currently trading near a 50-day low. Despite these setbacks, analysts express optimism due to growing demand for virtual credit report services, suggesting a Moderate Buy rating and indicating shares may be undervalued by 26.88%.

ServiceNow (NYSE: NOW)

ServiceNow showcases promising potential with analysts forecasting a 30% upside given its current price dip to $830 per share. The company possesses strong IT service solutions, and a Moderate Buy consensus indicates positive sentiment among analysts. However, it also has a high P/E ratio of 121.54, which could raise concerns about valuation compared to peers.

Zscaler (NASDAQ: ZS)

Zscaler is gaining traction with its strong earnings performance and a potential 15.42% upside, amidst a backdrop of successful partnerships and growth strategies. Its current resilience against general market downturns and steady earnings growth since 2021 contribute positively to its investment appeal.

Taiwan Semiconductor Manufacturing (NYSE: TSM)

TSM holds substantial market dominance in chip manufacturing, recording earnings that consistently beat estimates. This company is well-placed to benefit from trends in semiconductor demand, notably in the burgeoning AI sector. Analysts suggest a Moderate Buy with a 28% potential upside along with a respectable dividend yield of 1.26% based on a solid growth rate of 19.21% over three years. Its P/E ratio is comparatively low at 24.56.

In conclusion, despite significant hurdles in the tech industry, stocks such as Equifax, ServiceNow, Zscaler, and TSM present intriguing opportunities for investors looking for long-term growth, emphasizing the importance of careful evaluation during bear markets.

Stocks: EFX NOW ZS TSM