Tech Wreck 2024: 3 Oversold Stocks to Buy for the Next Decade

Even after last week’s rally, there are several oversold stocks that might make sense to buy in mid-August. Whether or not the relief jump kicks into high gear, it’s hard not to act on a lot of names that are close to the cheapest they’ve been in months.

Of course, buying drops and fixes won’t work 100% of the time. Just because stocks are back in rally mode and the bearish developments that previously haunted investors have faded into the background doesn’t mean new highs are in sight. Some of last week’s fastest players could slip and stumble as we head into what could be a cold fall for the entire market.

If you’re more focused on capturing opportunities to build wealth over the next decade and not just the next few weeks, the following three names are worth considering while they’re out of favor.

Alphabet (GOOG, GOOGL)

Alphabet (NASDAQ:GoogleNASDAQ:GOOGLE) has rallied along with the rest of tech in recent sessions. Still, GOOG stock hasn’t really rebounded as strongly as some of its peers in the Magnificent Seven, now up less than 4% from its August lows.

A historic antitrust lawsuit that didn’t go Google’s way is a big reason the stock hasn’t risen as quickly. With the Department of Justice (DOJ) considering more action (could an Alphabet breakup be in the distant future?) against the monopolistic firm, it remains a pretty tumultuous time to be a GOOG shareholder.

The DOJ defeat may be bad news, but there have been some positive developments that have been largely ignored of late. For example, Google recently launched its Google Pixel 9 equipped with artificial intelligence. At just 23.8 times trailing price-earnings (P/E), I think it’s time to step in before the crowd moves on from the DOJ woes and the latest selloff. -quarter off-inductor.

Cisco Systems (CSCO)

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Cisco Systems (NASDAQ:CSCO) is a network equipment manufacturer that has been feeling the pressure lately. That Intel (NASDAQ:INTC), Cisco is a legacy company that has struggled to maintain a growth advantage.

At the time of writing, CSCO shares are down more than 28% from their December 2021 highs. And while the recent acquisition of Splunk could help Cisco out of its latest funk, its low valuation makes the name the most attractive in this harsh technological environment.

Today, the stock trades at 15.3x P/E, making it one of the most interesting deep value names in tech waters. Plus, there’s a 3.53% dividend yield to collect while you wait for the company’s AI prowess to take effect.

Sure, you can’t cut your way to growth, but with more layoffs (about 4,000 in the last wave) to precede AI-focused hiring, I see Cisco’s long-term trajectory as more solid. Just be ready to deal with short-term volatility as Cisco repositions its ship.

Vertiv (VRT)

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Vert (NYSE:VRT) is one of the red-hot data center plays that went parabolic until the stock fell off a cliff in May 2024. To be sure, not much has changed about the company’s impressive AI-powered growth story. It’s still a major beneficiary as enterprises continue to invest heavily in GPUs, servers, cooling systems and everything else that goes into top data centers.

Last week, Mizuho (NYSE:MFG) improved VRT stock from its now more attractive valuation. While the upgrade involved a slight $3 reduction in the price target (now at $92 per share), the implied upside is still quite significant, based on where the stock currently sits at around $76 and change .

With fresh momentum to go behind it and a now very modest 32.9 times forward P/E multiple, VRT stock looks primed to pick if you’re bullish on what could be a multi-year AI infrastructure boom.

As of press time, Joey Frenette held a long position in Alphabet (Class C). The opinions expressed in this article are those of the writer, subject to InvestorPlace.com Publishing Guide.

At the time of publication, the editor in charge held a long position in GOOG.