The urgency to identify high-performing stocks anticipating a market rally is paramount, especially within the technology sector, which is known for its rapid pace and innovation-driven landscape. This context becomes critical when investors look for substantial growth opportunities amidst market fluctuations. In light of this, three tech stocks are currently positioned as compelling investment opportunities due to their innovative business models, strong growth trajectories and strategic market positions.
The first company stands out for securing substantial contracts and boosting its premium client roster, evidenced by its contract growth and high renewal rates, highlighting client satisfaction and revenue stability. The second excels in digital advertising, using technology to boost brand engagement and grow significantly in the streaming sector, thanks to innovative ad solutions and partnerships. The third, a sector leader, has seen notable sales growth from diversifying and embracing advanced technology, including AI, supported by extensive strategic partnerships, positioning it to meet the increasing demand for tech solutions.
These companies exemplify the traits of strategic agility, technological innovation, and market leadership, making them standout candidates for investors seeking tech stocks to buy before the next market rally within.
ServiceNow (NOW)
The capacity of ServiceNow (NYSE:NOW) to draw in high-value clients and spur expansion through significant contract wins supports the company’s values. In Q4 2023, ServiceNow had a record number of new clients sign agreements with net new annual contract values (ACV) exceeding $1 million. This includes multinational financial services companies like TIAA, demonstrating ServiceNow’s capacity to draw esteemed customers from a variety of sectors.
With a 33% year-over-year (YoY) growth rate, ServiceNow saw a notable rise in agreements exceeding $1 million in net new ACV in Q4 2023. This shows that the business successfully lands bigger contracts and grows its income base. Five transactions totaling more than $10 million during Q4 illustrate this.
In short, the company has a differentiated value offering and a competitive market position. This can be observed by the steady acceleration of major new logo growth over successive quarters. Q4 had a best-in-class renewal rate of 99%, demonstrating the high degree of contentment and steadfastness among ServiceNow’s current clientele. Overall, it makes sense that a high renewal rate leads to income stability and revenue predictability.
Perion (PERI)
Perion (NASDAQ:PERI), a company that offers technologies for near-store and in-store displays, helps brands interact with customers through various channels, increasing sales and strengthening brand loyalty. Comparably, Perion’s CTV segment has grown significantly, with its revenue growing from $21.5 million in 2022 to $33.5 million in 2023, a 56% YoY increase. This increase results from customers turning more and more to streaming platforms for their entertainment demands, which drives up demand for linked TV advertising.
Moreover, Perion has creative products, such as Pause Ads, in collaboration with DirecTV. These products give advertisers exceptional chances to interact with customers unobtrusively. This further highlights the company’s success in the CTV market. Hence, Perion assists marketers in maximizing the impact of their CTV campaigns by providing tailored content and targeted advertising.
Additionally, Perion’s Search Advertising division has shown impressive development. Revenue saw a 23% YOY increase, ring from $235.4 million in 2022 to $289.5 million in 2023. Lastly, the average daily search volume has increased by 57%, and the yearly number of publications has increased by 18%, deriving top-line expansion and demonstrating Perion’s potential to gain market share.
Intel (INTC)
Intel’s (NASDAQ:INTC) market value movements are impacted by strategic diversification initiatives and top-line growth prospects. Intel announced $15.4 billion in sales for Q4 2023, a 10% YoY increase. This rise indicates that Intel can continue to profit despite more general market difficulties.
Intel’s efforts towards income diversification are apparent, even with the decline in yearly revenue. The launch of Intel Foundry Services (IFS) is a calculated decision to diversify income sources from conventional product lines. The business has more than 40 strategic relationships in various industries, including government contracts, cloud computing, IP, and electronic design automation (EDA) services.
However, Intel is concentrating on integrating AI capabilities into its product lines. This includes edge and cloud devices and Intel Core Ultra and Xeon Scalable CPUs tailored for AI applications. Finally, there are plans to promote AI networking with business partners, and OpenVINO usage rose by 60% sequentially in Q4. With that, Intel can take advantage of the rising demand for AI-integrated solutions.
As of this writing, Yiannis Zourmpanos held a long position in INTC. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.