The current economic environment, shaped by inflation and evolving consumer behaviors, offers both challenges and opportunities for investors. Explore three tech stocks identified by The Motley Fool’s experts as poised for substantial growth amid these economic shifts.
1. Marqeta – Rebounding Fintech
Analyst: Billy Duberstein
Marqeta (NASDAQ: MQ), a card-issuing technology platform, has faced challenges amid rate-sensitive market conditions. The stock experienced a significant dip earlier this year but has shown signs of recovery. With the Federal Reserve signaling a potential “soft landing,” Marqeta’s platform, facilitating various card use cases, could benefit from an uptick in spending activities. The company’s new CEO, Simon Khalaf, has identified potential clients, accelerating Marqeta’s bookings. Additionally, key contract renewals, such as with Block (NYSE: SQ), position Marqeta for growth in 2024. The company’s healthy balance sheet, holding approximately $1.3 billion in cash, further strengthens its potential for a resurgence.
2. Criteo – Evolving Ad Tech
Analyst: Anders Bylund
Criteo (NASDAQ: CRTO), an advertising technology expert, has successfully shifted its business model from a retargeting focus to a multi-solution platform offering end-to-end AI-enabled ad tech services. The company’s diversified revenue streams, including retail media sales and marketing solutions, reflect a strategic move to optimize marketing outcomes. Criteo’s deep learning and AI tools position it well for the post-cookie era in online advertising. Despite a stock price decline in 2023, Criteo’s forward-looking valuation and strategic positioning make it a potential winner in the upcoming advertising market rebound.
3. Lattice Semiconductor – FPGA Growth Story
Analyst: Nicholas Rossolillo
Lattice Semiconductor (NASDAQ: LSCC), a field programmable gate array (FPGA) chip designer, stands out as the last FPGA pure-play stock after industry consolidation. With a focus on industrial AI and manufacturing automation, Lattice benefits from the growing demand for FPGA chips. Under CEO Jim Anderson’s leadership, the company has achieved high revenue growth and margin expansion. Despite recent market challenges, Lattice’s core markets in industrial equipment are expected to rebound, presenting a favorable buying opportunity in 2024. The stock, trading at around 40 times trailing-12-month free cash flow, offers potential growth as the next bull market unfolds.
Investors seeking opportunities in the tech sector during the economic upswing may find these undervalued stocks worth considering. Each company’s unique strengths and strategic initiatives position them as potential beneficiaries in the evolving market landscape.
