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Top 3 Tech And Telecom Stocks That May Rocket Higher This Quarter







Exploring Oversold Tech And Telecom Stocks with Potential for Growth

Exploring Oversold Tech And Telecom Stocks with Potential for Growth

Amidst the tumult of the stock market, a glimmer of hope emerges in the communication services sector. An opportunity to plunge into undervalued companies beckons as oversold stocks beckon the courageous investor.

What is this magic wand that unveils these potential gems? Behold the RSI – a momentum indicator that compares a stock’s strength on upswinging days to its resilience on downcast ones. Significantly, when the RSI plunges below 30, the asset is perceived as oversold, signaling a probable resurgence in the short term.

Let’s delve into the realm of oversold marvels in the tech and telecom industry, where opportunities await those bold enough to seize them.

The Tencent Music Tale – ADR TME

  • Recently, Tencent Music Entertainment hinted at a fiscal second-quarter 2024 revenue downslide, missing analyst expectations. Despite this hiccup, the company’s visionary Executive Chairman, Cussion Pang, expressed contentment with the robust results. The stock’s recent stumble of around 10% and its 52-week low present a facade of vulnerably nestled opportunities.
  • RSI Value: 29.61
  • TME Price Action: The stock of Tencent Music shimmied 2.5% lower to a closing price of $9.51 on a recent Friday.

Douyu International Dynamics DOYU  

  • The saga of DouYu International narrates a fiscal second-quarter revenue decline of 25.9%, drastically missing the anticipated figures. With the stock staggering around a 59% plummet and embracing its 52-week low, it presents a facade of opportunity cloaked in adversity.
  • RSI Value: 24.49
  • DOYU Price Action: Contrarily, Douyu International’s stock mounted a slight 2.2% rise, closing at $7.79 on a recent Friday.
See also  Insight into Three Mega-Cap Stocks with Significant PotentialAlphabet Inc.: A Tech Powerhouse

Undoubtedly, Mountain View-based Google's parent company, Alphabet Inc. (GOOG), is a tech titan that needs no introduction. Over the years, Alphabet has seamlessly integrated AI into its flagship products like Gmail and Google Maps, augmenting their utility for everyday consumers. With a colossal market cap of $2 trillion, Alphabet primarily derives its revenue from Google Search, a dominant force in the global search engine arena.

Having surged by 27.6% over the past 52 weeks, Alphabet's stock has slightly outperformed the S&P 500 Index's gain of 26% during the same period. In 2024, the company has witnessed a 17% upsurge, aligning closely with the SPX's 16.4% YTD return.

Image source: www.barchart.com

Trading at 21.78 times forward earnings, Alphabet's stock is relatively cheaper compared to its five-year average of 25.81x. The company paid its shareholders a debut dividend of $0.20 per share on June 17, followed by another $0.20 per share dividend on July 23, concurrent with its impressive Q2 earnings release.

Alphabet's Q2 results surpassed Wall Street's estimates on both top and bottom lines, propelling the company's total revenue by nearly 14% annually to $84.7 billion. A noteworthy achievement was Google Cloud's milestone, surpassing $10 billion in quarterly revenues and $1 billion in operating profit for the first time.

Image source: www.barchart.com

CEO Sundar Pichai emphasized innovation throughout Alphabet's AI stack, with earnings projections for fiscal 2024 expected to reach $7.62 per share, marking a 31.4% yearly increase. Analysts have a consensus "Strong Buy" rating on GOOG stock, suggesting substantial upside potential.

Meta Platforms: Pioneering Social Connectivity

Valued at approximately $1.3 trillion, Meta Platforms, Inc. (META) stands as a global social media leader headquartered in California. The company, formerly known as Facebook, has revolutionized social connectivity since its inception in 2004, leveraging platforms like Messenger, Instagram, and WhatsApp.

Meta, renowned for its expansive reach, now focuses on immersive augmented and virtual reality experiences, shaping the future of social technology. META stock has surged by almost 80% over the past 52 weeks, outperforming the SPX during this period.

Image source: www.barchart.com

On June 26, META paid its shareholders a quarterly dividend of $0.50 per share, amounting to an annualized dividend of $2.00 per share. Despite trading at 24.85 times forward earnings, META's stock has demonstrated impressive growth, although it appears relatively pricier compared to industry peers.

The Dance of Giants: Meta and Netflix Stock Rise Amidst Market Fluctuations

The Enigmatic Webtoon Engima WBTN

  • Webtoon Entertainment, amidst worse-than-expected second-quarter revenue figures, embarks on a quest for redemption. Founder and CEO, Junkoo Kim, echoes a tale of perseverance and innovation. The company’s shares swayed around a 15% descent over the past week, offering an obscure allure for discerning investors.
  • RSI Value: 28.30
  • WBTN Price Action: Curiously, the stock of Webtoon Entertainment inched up by 1.1%, securing a closing price of $10.42 on a recent Friday.

Could these downtrodden stocks metamorphose into soaring marvels? The RSI whispers tales of potential, but only time will unveil the true narrative. As the market ebbs and flows, the discerning investor must heed the call of opportunity in these times of apparent distress.

Consider these companies not as downtrodden entities, but as slumbering giants awaiting their awakening. The RSI serves as a compass, guiding the astute investor toward obscured treasure troves of potential growth.

Market News and Data brought to you by Benzinga APIs


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