All in all, November isn’t shaping up to be much better than October. The Nasdaq Composite Index fell back into correction territory on Monday, pulled down by major tech stocks.
Concerns about overblown valuations have hurt the sector over the last couple of months, with the pain spread across chip stocks, software stocks as well as the so-called FAANG heavyweights.
But there are still some names top Wall Street analysts are sticking by and telling clients to add.
Here are the best-performing analysts’ five favorite tech stocks right now, as published by CNBC on November 14:
Facebook (FB)
Social media giant Facebook (FB – Research Report) has had a tough time recently. Shares are currently down 19 percent year-to-date, and 5 percent in the last week alone.
But even though third quarter revenues and user numbers came in a tad below expectations, the stock still holds a ‘strong buy’ analyst consensus rating. This is with a $190 average price target (34 percent upside potential).
One analyst giving Facebook a thumbs up is RBC Capital’s Mark Mahaney (Track Record & Ratings). “We remain bullish on FB” he told investors following third quarter results, adding that Facebook remains “arguably the best risk-reward in Large Cap Internet.”
Put simply, FB stills owns two of the largest media assets in the world (Facebook & Instagram) and the two largest messaging assets in the world (Messenger & WhatsApp).
Monetization of core FB and Instagram assets still has material upside potential, says Mahaney, while Messenger & WhatsApp are still in the beginning stages of monetization. And that’s alongside potentially lucrative future revenue streams from Stories, Watch and VR/AR.
As a result, the five-star analyst reiterated his Buy rating on October 30 with a $190 price target. He is one of 31 analysts that have published Buy ratings on FB in the last three months. This is versus 5 Hold ratings, and 1 Sell rating.
