Tech stocks like Nvidia, Palo Alto Networks, and Zoom Video are recommended buys at discounts.

From Morningstar: 2024-05-20 17:56:26

This week’s biggest focus in the tech world is Nvidia’s upcoming earnings report. Morningstar currently rates the stock with 3 stars and expects strong guidance for future growth. With revenue forecasted to double this fiscal year and grow significantly in the coming years, Nvidia remains a high-growth stock with potential.

Cybersecurity stock Palo Alto Networks is also reporting earnings this week. Morningstar views the industry positively due to increasing cyber threats. Palo Alto is rated at 3 stars and is considered fairly valued, making it a potential investment for those interested in tech. Fortinet is another option for tech exposure at a 20% discount.

Zoom Video Communications, known for its pandemic-fueled growth in 2020, has seen a significant drop in its stock price. Despite this, Morningstar rates Zoom with 4 stars and sees potential for growth in the next five years. Trading at a 28% discount to fair value, Zoom could be a good opportunity for investors.

Medtronic, a leader in the medical device industry, is a stock to watch this week. With a wide economic moat and a focus on chronic disease management, Medtronic is well-positioned for future growth. Rated at 4 stars and trading at a 25% discount, Medtronic offers a healthy dividend yield and potential earnings leverage.

Dollar Tree is another company reporting earnings, with a focus on consumer strength and the impact of inflation. While the stock is currently rated 3 stars, Morningstar is interested in management’s comments on consumer trends. With strong foot traffic and comp store sales, Dollar Tree’s performance may shed light on the impact of inflation on consumers.



Read more at Morningstar: 5 Stocks to Buy While They’re Trading at Big Discounts