Which Strong Buy Tech Stock Is the Best Buy?

Stocks are on an unstoppable hot streak right now, with eight straight sessions in the green for the S&P 500 ( SPX ), its longest winning streak since last November. Undoubtedly, tech stocks are leading the way higher, just weeks after many investors thought the markets would roll and the less-loved mid-cap and value plays would lead us higher. With Tech stocks back in the driver’s seat, it could be time for many to go back to the drawing board to capitalize on the latest injury.

In this piece, we’ll check with the TipRanks Comparison Tool to gauge which trio of tech titans — SQ, INTU, and AMZN — has the most upside for the year, according to Wall Street analysts.

Block, formerly known as Square, is a financial technology company (it owns Cash App and other services) whose stock has rallied sharply in recent years. Indeed, stocks have broken the hearts of many investors, but the tide may be about to turn.

Recently, Bank of America (BAC) reviewed the chart on SQ stock, noting “undervaluation” and “undervaluation.” With potentially overlooked catalysts (think major corporate restructuring) on ​​the horizon, I remain bullish on the stock.

Now down nearly 9% over the past two years and down 13.5% year-to-date, SQ stock looks like a dud in the tech sector. Despite beating earnings handsomely in the past two quarters, the stock seems to lack the buzz factor it once had. Whether it’s the lack of blockchain innovations or the operational challenges that led CEO and “Block Head” Jack Dorsey to reorganize his entire company, investors are demanding more from the firm in the age of AI. Whether last month’s corporate shakeup helps Block regain its competitive spirit remains to be seen.

However, the company has plans to get back on the high road. Specifically, the company’s “Rule of 40” plan through 2026 sets a fairly high (but realistic) standard, with gross profit and adjusted operating income targets set at 15% and 25%, respectively (a sum of 40%).

Bank of America analyst Jason Kupferberg, who has a buy rating on the stock and a price target of $82.00 per share implying an upside of more than 22%, praised Block for “already showing good progress” in regarding the Rule of 40. As Block strives for greater efficiency, the firm must introduce new innovations to boost sales. The introduction of new financial services into the Cash App ecosystem (such as Cash App Borrow) is worth beating.

What is the price target for SQ stock?

SQ shares are a strong buy, according to analysts, with 24 buys, six holds and one sell assigned in the past three months. SQ’s average share price target of $88.90 implies a potential upside of 32.9%.

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See more SQ analyst ratings

Shares of financial technology software company Intuit (best known for its TurboTax tax filing software) are once again flirting with new highs, now down just over 5% from all-time highs and 2% off their highs from 52 weeks. Undoubtedly, the $670 resistance ceiling has proved difficult to break over the past six months. As the company looks to fire and rehire with AI in mind, perhaps investors looking for “AI monetization” pieces will have more to love in the name from a longer-term perspective. Although the valuation multiple has widened considerably in recent weeks, I am inclined to remain bullish on INTU stock.

Intuit is serious about AI-powered growth. But unlike many other firms that are more than willing to overinvest than underinvest (think Alphabet ( GOOGL ) ), Intuit is also serious about keeping its balance sheet in great shape, stressing at the same time time increasing operational efficiency. As more investors reward the return on investment in AI, rather than the ambition of AI narratives and the size of spending budgets, Intuit may be just one of the firms that starts to stand out from the pack, if it hasn’t already .

Intuit’s AI offering, Intuit Assist, is an innovative tool designed to increase productivity in financial software by providing AI-powered assistance and insights. Over time, it could become highly monetizable, similar to how Microsoft ( MSFT ) successfully monetized Copilot. Whether Intuit can achieve the same success remains to be seen, but it’s clear that financial software is a sector poised for significant AI-driven disruption, and Intuit is well-positioned to ride that wave.

Indeed, Intuit will add immense value to users by spreading generative AI across QuickBooks, TurboTax, Credit Karma and Mailchimp to improve the user experience. With value creation comes the opportunity to charge higher prices. At the end of the day, users will likely be more than willing to open their wallets wider if there’s more value, whether it’s in the form of time savings or increased accuracy.

At a price-to-earnings ratio of 34.7 times, INTU stock is on the more expensive side of its historical range over the past year. Given the real opportunity to monetize AI and the generative AI operating system (GenOS) it’s built on from the ground up, I’d argue that the premium is worth paying.

What is the price target for INTU stock?

INTU stock is a strong buy, according to analysts, with 18 buys and four holds assigned in the past three months. INTU’s average stock price target of $722.61 implies a potential upside of 8.9%.

See more INTU analyst ratings

Shares of e-commerce and cloud giant Amazon fell in July and earlier this month as the market’s sell-off dragged the Nasdaq 100 (NDX) in the correction territory. To be sure, it wasn’t just investors turning against the technology that sent AMZN stock tumbling nearly 25% from peak to trough. The company’s last quarter left a lot to be desired.

Either way, AMZN stock has the opportunity to move forward in high gear as investors focus on the road ahead and the growth factors that could help the firm rise to the top. As one of the most magnificent buy-the-dip opportunities today, I’m inclined to remain bullish on the stock.

Next, look for Amazon to reveal more details about how it plans to take on Chinese e-commerce rivals such as PDD Holdings ( PDD ) Temu at the low end of the cost spectrum.

Without a doubt, Amazon has plenty of market share to take over the bottom of e-commerce, and I think Amazon has more than enough tools to do the job well. Magnificent Seven handles logistics better than most. However, the big question remains whether it can minimize costs and shipping times for goods originating in China.

As Amazon’s low-cost marketplace goes live this fall, perhaps some of the excitement propelling PDD stock can spill over to AMZN. As early reviews roll in, we’ll get a glimpse of what could be one of Amazon’s next big growth avenues. At a trailing 42.4x P/E, AMZN is still more expensive than most of its Magnificent Seven peers. However, given the opportunity to steal Temu’s lunch and the continued advances on the AI ​​front (Amazon just bought another AI firm, Perceive, a few days ago), such a premium is well-earned.

What is the price target for AMZN stock?

AMZN stock is a strong buy, according to analysts, with 41 buys and one hold assigned over the past three months. AMZN’s average share price target of $223.58 implies a potential upside of 25.5%.

See more AMZN analyst ratings

The Takeaway

There are plenty of undervalued tech stocks that have room to move even higher as the market recovery lasts. Whether we’re talking about Block and its progress in the “Rule of 40”, Intuit and its enviable AI monetization opportunity, or Amazon and the potential of its future rival Temu, the following trio have the catalysts they need to rise. Of the three, Wall Street sees the biggest upside (33%) in SQ stock. I tend to agree with the analysts. If Jack Dorsey can right the ship, SQ stock’s comeback could be pronounced.

Disclosure