3 Bullish Tech Stocks Ignoring the Nasdaq Selloff

Heavy technology Nasdaq Composite the index has officially entered correction territory, down more than 10% from its record high set a few weeks ago in July. Many top tech stocks, which have seen massive rallies over the past two years, have been the hardest hit in the recent market rout.

However, not all technology names appear in red. In fact, some tech stocks have remained quite resilient and are still trading in the green despite the broader sell-off on the Nasdaq. Many of these stocks could have more room to run as their valuations still look reasonable. That’s even after investors factor in these stocks’ recent gains. If the overall market starts to settle and recover from the recent correction, it could provide an additional tailwind to add to their momentum.

That’s why I think it’s worth highlighting a few standout tech stocks that buck the downtrend and ignore the Nasdaq’s current weakness. Here are three bullish tech stocks that I think can continue to grow from here.

CACI International (CACI)

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FOR (NYSE:FOR) is one of the most consistent and stable companies out there. The company has posted solid gains in recent months, largely due to CACI’s strong public sector growth. Government contracts are some of the stiffest contracts a company can have and often come with high margins.

That’s why investors in CACI stock have largely ignored the recent tech selloff with that name. Indeed, a 26.7% higher move in the last six months alone shows the fundamental strength of this company. And importantly, the company has shown strong recent results. CACI beat revenue estimates by 5.5% in Q2.

In Q4 2024, CACI reported 20% revenue growth. For the full fiscal year, revenue rose 14%, beating expectations. And nearly 60 percent of the record $14 billion in contract awards was for renewed business. The company currently has an impressive order record of $28.6 billion.

Analysts are also optimistic about this title. In the past quarter, TD Cowen’s Cai von Rumohr, JP Morgan’s Seth Seifman and Truist Securities’ Tobey Sommer raised their price targets on the stock.

When you combine CACI’s solid fundamentals with its history of beating expectations, I think this under-the-radar stock is poised to continue climbing higher.

IBM

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IBM (NYSE:IBM) experienced a short sale earlier this year. However, IBM stock has bounced back nicely and delivered impressive returns to patient investors. In the past year, IBM shares have risen more than 35%. I think Big Blue can continue its upward trajectory as it shifts its focus from slow-growth consulting to high-growth areas like cloud computing and quantum computing.

The latter space, in particular, could be a game-changer for IBM in the long run. As AI becomes more and more sophisticated, it will require massive amounts of computing power. Quantum computing is a technology that seems poised to meet this demand. IBM’s investment in this cutting-edge technology positions it well for the future.

Moreover, IBM remains a cash cow, generating $4.5 billion in free cash flow in the first half of 2024 alone. The company also rewards shareholders with a generous 3.5% dividend yield.

I’m not surprised to see IBM stock doing so well. About two years ago, I pointed out that the company was moving into high-growth industries. It is gratifying to see that the thesis is progressing well so far.

GoDaddy (GDDY)

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GoDaddy (NYSE:GDDY) provides domain registration and web hosting services for small businesses. The company has made progress lately with the transition to focus more on AI-powered e-commerce capabilities, moving beyond just selling domains and web hosting.

The company’s core revenue was flat at $2.8 billion. So, I think this strategic shift has breathed new life into GoDaddy’s growth story. Notably, GDDY stock is up 116% over the past year with no signs of the growth slowing down. Even the recent tech selloff couldn’t dampen GoDaddy’s rally.

In its latest earnings report, GoDaddy posted revenue of $1.12 billion, beating estimates, with net income rising to $146 million. Bookings also rose more than 10% to $1.26 billion. Analysts praise GoDaddy as an “essential one-stop shop for micro-businesses,” and several have buy ratings on the stock with price targets as high as $190 per share.

I think this rally can continue for GoDaddy investors. Indeed, the company’s valuation seems pretty reasonable for a tech stock that’s seeing this kind of growth.

At the time of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.