From NASDAQ:

The selling to start 2024 helped cool an overheated market. The recent red wave helped send the Nasdaq from overbought RSI levels in late December to below neutral. Stocks and indexes come back down to key moving averages before they can restart their march higher. This pullback offers investors the opportunity to buy strong stocks at more attractive levels in the days and weeks ahead. The Nasdaq is back below its 21-day moving average, with the S&P 500 rapidly approaching that same key short-dated trendline.

Thankfully, the dips might be bought up quickly as more investors chase returns in 2024 as rates fall. Two highly-ranked tech stocks might slip in the days and weeks ahead. But their valuation levels are strong, making them more appealing given their improving earnings outlooks. Fiserv, Inc. (FI) is one of the most important financial services companies in the U.S. that operates in the background of backend payment processing. It’s core reportable segments include Merchant Acceptance, Financial Technology, and Payments and Network. Zacks estimates call for the company to post 8% revenue growth in FY23 and FY24 to reach nearly $20 billion. FI currently lands a Zacks Rank #2 (Buy) based on its upward earnings revisions and roughly 70% “Strong Buys” or “Buys” recommendations with no sells.

Fiserv shares have soared 1,300% in the last 20 years vs. the Nasdaq’s 610%. Fiserv has climbed 29% in the past 12 months and it hit new highs in the middle of December. The stock currently trades 10% below its average Zacks price target. Fiserv is back below its 21-day and possibly on a collision course with its 50-day as it slips from overbought in the middle of last month to below neutral.

Meta Platforms, Inc. (META) has soared 170% in the last 12 months, but trades at a 7% discount to the Zacks tech sector and 8% below its 10-year median. The stock is 12% below its average Zacks price target and roughly 10% below its 2021 highs. Meta is approaching its 21-day and sitting at neutral RSI levels after its recent dip. Despite concerns about slowing ad spending and the growing saturation of Facebook, Instagram, and WhatsApp, Meta grew its daily active user base by 7% and monthly active users by 7%.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



Read more: 2 Large-Cap Tech Stocks to Buy in 2024 for Surprising Value