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Two “Strong Buy” Tech Stocks with Over 30% Upside

The most valuable tech equities are issued by businesses creating the future. Top analysts recommend that investors should ignore short-term noise and pick stocks that have robust long-term potential. Using TipRanks’ Stock Screener Tool, we selected two tech stocks with more than 30% upside potential – Datadog (NASDAQ:DDOG) and Alphabet (NASDAQ:GOOGL) (GOOG).

This tool allows investors to see which stocks are being recommended by the best-performing analysts. The Stock Screener Tool is easy to use and can help identify stocks with solid potential based on criteria like:

  • Upside potential
  • Smart Score
  • Dividend yield
  • Analyst consensus
  • Market cap, and more.

Let’s have a look at these two companies.

Datadog (DDOG)

Datadog offers cloud-based analytics and monitoring tools for programmers, IT operations teams, and business users. The company provides a platform for cloud observability, monitoring, and security.

Datadog sees a huge market opportunity amidst rising cyber crime globally. Gartner estimates the total addressable market for observability to increase from $41 billion in 2022 to $62 billion in 2026.

Datadog shareholders may be concerned as the stock has plunged about 47% over the past year. Still, the 70% return generated by DDOG stock over the past three years is impressive.

Datadog’s revenue has increased by more than 50% each year since the company went public. Revenue grew 72% in the first nine months of 2022. The rapid growth in the company’s revenue makes it a good stock to invest in.

What is the Target Price for DDOG Stock?

Datadog has 25 recent analyst reviews, including 19 Buys and six Holds, giving the stock a Strong Buy consensus rating from the experts on Wall Street. The stock is currently trading at $69.70 and the average price target of $104.77 suggests 50.3% upside potential.

Alphabet (GOOGL, GOOG)

Alphabet is the parent company of the popular Android smartphone operating system and the online search giant Google. Over 90% of the global search market is dominated by Google.

GOOGL stock has declined nearly 33% over the past year as investors fear a potential recession, rising interest rates, and a slowing ad market. Nevertheless, numerous factors indicate that Alphabet’s long-term business and financial prospects remain excellent. The company is in a strong position to capitalize on the expanding digital advertising and cloud computing markets.

Alphabet has the financial capacity to keep raising shareholder value because of its large cash reserves and free cash flow. It can utilize the funds for strategic acquisitions, share repurchases, and capital investments. 

Alphabet has a history of acquiring businesses to fuel expansion. The tech sector has been slowing down over the past year, causing valuations to decline. Alphabet has the financial clout to seize this chance and go on the attack.

Is GOOGL a Buy, Sell, or Hold?

All the 32 analysts covering Alphabet stock have given a Buy rating, demonstrating Wall Street’s bullish sentiment for the company. Overall, the stock has a Strong Buy consensus rating at a target price of $126.09, which implies an upside potential of 38.4% from current levels.

Conclusion

Both Datadog and Alphabet are leading players in their respective fields and have fantastic growth potential, putting them in a position to perhaps deliver market-crushing returns in the upcoming years.

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