tech stocks november
Back to blog categories

Top 5 Tech Stocks Recommended by Wall Street Analysts (Strong Buys with a 30%+ upside)

In just one year, the Technology Select Sector SPDR Fund has risen by 46.4% and outperformed the iShares Core S&P which grew by 29.96% within the same time frame. If the trend of technology stocks outperforming the market continues, investors might be even better off picking a couple of tech stocks that are expected to outperform the market by a wide margin.

In this post, we will examine 5 tech stocks that analysts have rated as strong buys with more than 30% upside each. Some of them even have an upside close to 50%. 

So, let us take a look at them, one by one...

Uber Technologies (UBER)

Uber Technologies is an American transportation network company that was founded in 2009, with headquarters in San Francisco, California. 

Having reached a market capitalization of $86 billion and a market share of 68% in the US by now, its stock that was offered to the public for the first time in 2019 is worth taking a look at. 

Though Uber is mostly known for its ride-sharing business where it basically connects independent professional drivers to consumers, it has invested in other activities too. One of them is connected to the brand called Uber Eats, which is an online food ordering/delivery platform. 

Taking into account its enormous market share and its ubiquitous and prominent brand, the company may have what is considered an economic moat. On top of that, it has been steadily increasing revenue through its years of operations. 

But through the pandemic, the business predictably suffered and revenue fell in 2020 compared to 2019. In the second quarter of 2021, however, the company reported positive earnings per share after a long time of struggle. Also, Wall Street has been very pessimistic with Uber’s EPS estimates for almost one year, while the company continued to perform better than analysts expected, beating their estimates. 

And all this coupled with a slow but certain exit from the pandemic could be the reason that Wall Street seems very bullish right now. Analysts now expect great growth for the stock. 

According to 19 ratings made by Wall Street analysts in the last 3 months, Uber averages a Strong Buy recommendation and a 41% upside for the next 12 months.

promotion bar icon

Find the Best Trading App for you

Paypal Holdings (PYPL)

Paypal Holdings was founded back in 1998 and has its headquarters in San Jose, California. 

Its business is mainly about digital payments and money transfers; services that it offers through its famous brands called PayPal, PayPal Credit, Venmo, Braintree, Hyperwallet, Xoom, and iZettle. 

Through its platform, the company allows users to send/receive payments, fund their Paypal accounts, and withdraw money from their Paypal balances to their bank accounts in many supported currencies. But it also allows merchants to receive online payments via debit/credit cards. 

Recently, Paypal announced that it wouldn’t go through with its previously announced intention to acquire Pinterest (PINS), an image-sharing and social media platform. Right afterwards, Paypal’s stock price climbed to nearly 7%; not surprising when one takes into account the criticism that came with such an intended business move. 

The company has been increasing its revenue and earnings per share for years; predictably, the pandemic didn’t slow it down as was also the case with many online service businesses. 

Wall Street expects Paypal to do even better, though. According to 15 analysts who made these predictions in the past 3 months, the stock is rated a Strong Buy and has a 43% upside.

Prosus (PROSF)

Prosus is an e-commerce company that has headquarters in Amsterdam, the Netherlands and operates internet businesses that are related to classifieds, food delivery, fintech, education, and travel, to name a few. 

Recently, the company announced that it had agreed with the Indian digital payments provider BillDesk’s shareholders to buy BillDesk’s business for $4.7 billion. This acquisition is expected to make Prosus’ business PayU one of the leading online payment providers globally by total payment volume. 

Revenue growth for Prosus has been steady for the last couple of years and Wall Street expects the trend to continue. Based on 7 Wall Street analyst ratings, all made within the last 3 months, Prosus is rated as a Strong Buy and has a 54% upside potential for the coming 12 months. 

T-Mobile US (TMUS)

T-Mobile US was founded in 1994 and has headquarters in Bellevue, Washington. It provides mobile communications services.

More specifically, it offers messaging, voice, and data services to more than 100 million customers from the United States, Puerto Rico, and the US Virgin Islands. However, the company is also a seller of smartphones, tablets, and wearables. 

Revenue for T-Mobile remained flat for the last couple of years, but the company did enjoy an increase in 2020 and earnings per share were higher than Wall Street estimates. 

Wall Street analysts likely expect the trend to continue because based on 16 ratings, the stock has a Strong Buy recommendation and the price targets indicate an average 33% upside.

Upwork (UPWK)

Upwork is an American freelancing platform that was incorporated in 2013 and has its headquarters in Santa Clara, California. It provides an online talent marketplace to businesses that are looking for access to freelancers and agencies in various categories. 

Since 2016, the company has been steadily increasing its revenue stream and in the last two years, its earnings per share returned to positive figures. Taking into account that the pandemic has caused many businesses to look for talent through online platforms, this is not surprising at all. 

And it looks like the trend might continue as based on 6 Wall Street analysts’ predictions in the last 3 months, the stock is a Strong Buy and has a 31% upside.

Do You Use the Right Broker?

Stock market returns are determined to a significant extent by spreads, currency conversion rates, and by deposit, withdrawal, and trading fees.

This is why choosing the right broker can limit your expenses and ensure that you maximize your gains. 

You can use our trading app comparison tool to find the right broker for you in seconds! Don’t worry, it’s 100% free and no signing up is required.

Back to blog categories