Wall Street Favorites: 3 Tech Stocks With Strong Buy Ratings for May 2024

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Although the innovation space seemingly can’t do any wrong, investors may be best served with tech stocks to buy that also enjoy strong endorsements from Wall Street analysts. They don’t make or break enterprises but their blessings carry much weight.

For one thing, analysts do this for a living. Further, the big Wall Street firms don’t just pick random folks (or NPCs to use the common lexicon) to represent their brands. No, they have to earn their way into the field. And that means you’re not going to find too many kooky ideas out there.

Plus, many experts may influence the market because of their prominence and reputation. Therefore, you can approach these tech stock to buy with a greater degree of confidence.

Taiwan Semiconductor (TSM)

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Based in its namesake nation, Taiwan Semiconductor (NYSE:TSM), along with its subsidiaries manufacturers, packages, tests and sells integrated circuits (ICs) and other semiconductor devices. Further, the company provides a range of wafer fabrication processes, including mixed signal and radio frequency solutions. Bottom line, it’s a critical component of the global tech ecosystem, which is why analysts rate shares a unanimous strong buy.

To be fair, the tech giant – often abbreviated as TSMC – is a known commodity. Therefore, experts’ average price target on the security is only $164.13, implying about 8% upside potential. Further, with a trailing-year revenue multiple of 11.39X, shares trade at a premium. Still, the company has a strong financial track record. Over the past four quarters since the first quarter of 2024, its average positive earnings surprise comes out to 6.55%.

For fiscal 2024, covering experts project revenue to reach $84.61 billion, up 21.9% from last year’s haul of $69.4 billion. In fiscal 2025, this metric could rise to $102.79 billion, up 21.5% from projected 2024 sales. Therefore, it makes a solid case for tech stocks to buy.

Shift4Payments (FOUR)

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Based in Center Valley, Pennsylvania, Shift4Payments (NYSE:FOUR) operates in the infrastructure software category. Per its public profile, the company provides software and payment processing solutions in the U.S. and international markets. It offers a payment platform, specifically an omnichannel card acceptance and processing system that covers multiple payment types. Such flexibility is increasingly relevant in the digitalized commerce space.

Unsurprisingly, analysts rate shares a consensus strong buy with an $87.41 average price target. That implies more than 34% upside potential. Further, the high-side target calls for a price of $104 per share. To be fair, the company’s last two earnings performances came in below the expected mark. However, from Q2 2023 to Q1 2024, the average positive surprise landed at 10.23%.

What’s really intriguing is that shares trade at 1.52X trailing-year revenue. That’s lower than the sector median 2.26X. Additionally, the metric could be even more favorable considering that fiscal 2024 sales are projected to reach $3.63 billion. If so, that would be up 41.6% higher than last year’s print of $2.56 billion. Thus, it makes a great case for tech stocks to buy.

Trade Desk (TTD)

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For those that want to dial up the risk-reward factor, you have Trade Desk (NASDAQ:TTD). Based in Ventura, California, Trade Desk is an application software entity. According to its corporate profile, the tech firm operates as a self-service cloud-based platform, allowing buyers to plan, manage, optimize and measure data-driven digital advertising campaigns. With the huge pivot toward streaming content, Trade Desk could be exceptionally compelling.

Analysts understandably agree, rating shares a consensus strong buy. Further, the average price target comes in at $101.71, implying 18% upside potential. The high-side target stands at $115, projecting over 33% growth potential. However, prospective investors should note that there is one sell rating within the past three months.

Overall, the financial profile of Trade Desk is encouraging. Aside from one small miss in Q4, it’s been lights out. Over the past four quarters since Q1 2024, the average positive earnings surprise clocked in at 10.15%.

For fiscal 2024, analysts believe revenue could soar to $2.41 billion. If so, that would be up 23.7% from last year’s result of $1.95 billion. It’s one of the tech stocks to buy for risk takers.

On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions 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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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