As a result, we believe these tech shares offer significant long-term profit potential. Year-to-date (YTD), the tech-heavy Nasdaq 100 index has advanced over 17%. Now it hovers near all-time highs. Tech giants like Apple (NASDAQ:AAPL), Nvidia (NASDAQ:NVDA), and Microsoft (NASDAQ:MSFT) have led the rally. However, a number of tech stocks have been left behind.
As a result, these overlooked companies currently trade at a discount, providing attractive entry points for long-term investors. Despite the recent share price weakness, many of these companies have strong profitability metrics and positive analyst outlooks. With that information, let’s explore three tech stocks to buy, worthy of your attention in the second half of 2024.
Salesforce (CRM)
Customer relationship management (CRM) technology heavyweight Salesforce (NYSE:CRM) is first. The company’s Customer 360 platform brings companies and customers together. It offers a range of services from sales and service to marketing and commerce. Many of our readers follow CRM stocks as a member of the Dow Jones Industrial Average, or Dow 30.
Recently, Salesforce reported financial results for Q1 of fiscal year 2025. The company delivered $9.13 billion in revenue, an 11% year-over-year (YOY) increase. Subscription and support revenue, a significant component of Salesforce’s business, grew by 12%.
However, investors were not pleased Salesforce’s metrics fell short of Wall Street’s estimates. This was the first time since 2006 that Salesforce missed revenue expectations. Investors were concerned about Salesforce potentially being left behind in the artificial intelligence (AI) boom. Yet, InvestorPlace.com contributor Alex Sirois has recently reported on this. Salesforce management has been investing in the AI safety and research company Anthropic, known for its large language model (LLM) Claude.
In addition, Salesforce has been actively pursuing strategic deals and partnerships to enhance its offerings and expand its reach. One notable development has been the creation of the Zero Copy Partner Network. This includes major tech players like Amazon (NASDAQ:AMZN), privately-held Databricks, Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), International Business Machines (NYSE:IBM), Microsoft (NASDAQ:MSFT), and Snowflake (NYSE:SNOW).
So far in 2024, CRM stock has declined over 12%. The shares are trading at forward price-to-earnings (P/E) ratio of 23.4x and price-to-sales (P/S) ratio of 6.2x. Meanwhile, Wall Street remains optimistic with a 12-month median target that signals a 30% upside potential.
Keysight Technologies (KEYS)
Electronic design and test solutions provider Keysight Technologies (NYSE:KEYS) makes electronic equipment, instruments and components segments. It serves customers in a wide range of industries, including communications, government, automotive, industrial and semiconductor manufacturing.
In Q2 of 2024, Keysight Technologies reported revenue of $1.216 billion. Although the number was above the high end of their guidance, it represented a 13-14% decline on a core basis compared to the previous year. Orders for the quarter were $1.219 billion, down 8-9%. Looking ahead, Keysight’s management expects Q3 revenues to be between $1.180 billion and $1.200 billion.
Also, Keysight Technologies has been active in expanding its capabilities and market reach. Recently, the firm was designated as a technical service provider for the United Nations Economic Commission for Europe (UNECE) in automotive cybersecurity and software regulations. Also, management introduced a pulse generator software for its FieldFox handheld analyzers, supporting numerous advanced applications.
Since January, KEYS stock has lost around 14%. Currently, it is changing hands at 23.3 times forward earnings and 4.6 times sales. Despite the decline in Keysight share price, analysts expect a potential advance of around 19% in the next 12 months.
Skyworks Solutions (SWKS)
Finally, Skywork Solutions (NASDAQ:SWKS) specializes in the design and manufacture of high-performance analog and mixed-signal semiconductors. The company serves various end markets, including mobile, automotive, industrial, infrastructure and the IOT.
Recent earnings showed revenues of close to $1.05 billion and earnings per share (EPS) of $1.55. The gross margin for the quarter was 45%, down 140 basis points sequentially, reflecting the seasonally weakest period for SWKS.
Looking ahead, Skyworks Solutions expects revenue of $900 million for the June quarter. And the gross margin is projected to improve to 45-47%, with further expansion anticipated in the remainder of 2024.
Skyworks Solutions has been actively expanding its pipeline and initiating new programs. For instance, management has secured several audio system-on-chip (SoC) designs with major players like Sony Group (NYSE:SONY) and Samsung Electronics. Recently, it has also showcased several AI-enabled phones, highlighting the potential for AI to drive a meaningful replacement cycle in the smartphone market.
YTD, SWKS shares are down over 5% and are changing hands at 17.9 times forward earnings and 3.7 times sales. Investors could regard any potential dip in SWKS stock as an opportunity to invest for the long term.
On the date of publication, Tezcan Gecgil 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.
Tezcan Gecgil, PhD, began contributing to InvestorPlace in 2018. She brings over 20 years of experience in the U.S. and U.K. and has also completed all 3 levels of the Chartered Market Technician (CMT) examination. Publicly, she has contributed to investing.com and the U.K. website of The Motley Fool.