The stock market has staged an impressive rebound following a volatile past few months. Easing trade tensions, driven by the Trump administration’s pullbacks on most of its “reciprocal” tariffs, has helped restore some level of investor confidence in the corporate earnings outlook.
The S&P 500 index, which had declined by as much as 19% from its highs to its lows in April, has recovered the bulk of those losses and is now up 1% year to date as of this writing. Nevertheless, there are still plenty of opportunities in the market among beaten-down stocks and others that appear downright cheap.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Here are three tech stocks still trading at a discount that I believe are worth buying right now.
Image source: Getty Images.
1. Alphabet
Alphabet (NASDAQ: GOOGL) is a leader in artificial intelligence (AI) innovation, leveraging machine learning and generative AI capabilities to drive growth across its diverse product ecosystem. In the first quarter (for the period ended March 31), revenue climbed by 12% year over year, while the $2.81 in adjusted earnings per share (EPS) surged by 49% from the prior year quarter.
The company is seeing higher advertising conversions across its Google Search and YouTube platforms. The bigger story is the strong enterprise-level demand for its AI infrastructure and generative AI solutions through Google Cloud Platform (GCP), where revenue climbed by 28% from last year. This ongoing diversification into more high-tech services beyond advertising should help Alphabet navigate regulatory concerns and the more competitive search landscape.
Company management is projecting confidence in its outlook, increasing its quarterly dividend rate by 5% this year and announcing a new $70 billion share repurchase authorization. Investors will be hard-pressed to find another company with Alphabet’s combination of scale, growth, and tech leadership.
The stock’s valuation is compelling, too, trading at just 17.5 times its consensus 2025 EPS as a forward price-to-earnings (P/E) ratio. That’s well below the company’s five-year average for the earnings multiple, which is closer to 25. With the stock currently down about 19% from its 52-week high, Alphabet stock is an intriguing buy-the-dip opportunity.
Data by YCharts. PE Ratio = price-to-earnings ratio.
2. Dell Technologies
Dell Technologies (NYSE: DELL) has undergone a sort of renaissance in recent years, transforming into a powerhouse in data center infrastructure and AI-driven solutions. While the stock has returned a spectacular 479% over the past 5 years, it’s down approximately 36% from its 52-week high. This recent weakness seems unwarranted, with a case to be made that the company’s outlook remains as strong as ever, making shares well-positioned to rebound.
The company is capitalizing on robust demand for high-performance rack-scale server systems, which are critical for supporting data-intensive AI workloads. Dell’s Infrastructure Solutions Group (ISG) delivered an impressive 29% revenue growth last year, driven by enterprise adoption, and now benefits from an effective $9 billion AI backlog.
For the year ahead, Dell management is targeting 8% revenue growth and a 14% increase in EPS for fiscal 2026, fueled by its AI solutions and a diverse portfolio of products. With the stock trading at a forward P/E of 12, Dell looks like a tech sector bargain backed by solid fundamentals with significant growth catalysts to reward shareholders over the long run.
3. Verizon Communications
Compared to shares of Alphabet and Dell Technologies, which have sold off in the first half of 2025, Verizon Communications (NYSE: VZ) stock has outperformed, up 10% year to date (although it’s still down about 29% from all-time highs hit in late 2020). Several tailwinds point to further upside.
In the first quarter (for the period ended March 31), Verizon’s revenue and EPS surpassed Wall Street estimates as recent price hikes drove steady growth. Company management is reaffirming its profitability outlook with an expectation for climbing free cash flow this year.
The telecom giant isn’t an obvious tech leader within the artificial intelligence revolution, yet its high-speed, low-latency connectivity services play a vital role in the AI ecosystem. Verizon’s strategic investments in fiber optics enhance its ability to deliver the high-capacity broadband connectivity essential for AI-driven applications and cloud services.
As an investment, Verizon shines through its 6.2% dividend yield and discounted valuation, trading at just 9 times its consensus 2025 earnings as a forward P/E. For investors seeking a blend of value, high-yield income, and exposure to tech sector themes, Verizon’s stock is a good choice for diversified portfolios.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $642,582!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $829,879!*
Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of May 12, 2025
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The stock market has staged an impressive rebound following a volatile past few months. Easing trade tensions, driven by the Trump administration’s pullbacks on most of its “reciprocal” tariffs, has helped restore some level of investor confidence in the corporate earnings outlook.
The S&P 500 index, which had declined by as much as 19% from its highs to its lows in April, has recovered the bulk of those losses and is now up 1% year to date as of this writing. Nevertheless, there are still plenty of opportunities in the market among beaten-down stocks and others that appear downright cheap.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Here are three tech stocks still trading at a discount that I believe are worth buying right now.
Image source: Getty Images.
1. Alphabet
Alphabet (NASDAQ: GOOGL) is a leader in artificial intelligence (AI) innovation, leveraging machine learning and generative AI capabilities to drive growth across its diverse product ecosystem. In the first quarter (for the period ended March 31), revenue climbed by 12% year over year, while the $2.81 in adjusted earnings per share (EPS) surged by 49% from the prior year quarter.
The company is seeing higher advertising conversions across its Google Search and YouTube platforms. The bigger story is the strong enterprise-level demand for its AI infrastructure and generative AI solutions through Google Cloud Platform (GCP), where revenue climbed by 28% from last year. This ongoing diversification into more high-tech services beyond advertising should help Alphabet navigate regulatory concerns and the more competitive search landscape.
Company management is projecting confidence in its outlook, increasing its quarterly dividend rate by 5% this year and announcing a new $70 billion share repurchase authorization. Investors will be hard-pressed to find another company with Alphabet’s combination of scale, growth, and tech leadership.
The stock’s valuation is compelling, too, trading at just 17.5 times its consensus 2025 EPS as a forward price-to-earnings (P/E) ratio. That’s well below the company’s five-year average for the earnings multiple, which is closer to 25. With the stock currently down about 19% from its 52-week high, Alphabet stock is an intriguing buy-the-dip opportunity.
Data by YCharts. PE Ratio = price-to-earnings ratio.
2. Dell Technologies
Dell Technologies (NYSE: DELL) has undergone a sort of renaissance in recent years, transforming into a powerhouse in data center infrastructure and AI-driven solutions. While the stock has returned a spectacular 479% over the past 5 years, it’s down approximately 36% from its 52-week high. This recent weakness seems unwarranted, with a case to be made that the company’s outlook remains as strong as ever, making shares well-positioned to rebound.
The company is capitalizing on robust demand for high-performance rack-scale server systems, which are critical for supporting data-intensive AI workloads. Dell’s Infrastructure Solutions Group (ISG) delivered an impressive 29% revenue growth last year, driven by enterprise adoption, and now benefits from an effective $9 billion AI backlog.
For the year ahead, Dell management is targeting 8% revenue growth and a 14% increase in EPS for fiscal 2026, fueled by its AI solutions and a diverse portfolio of products. With the stock trading at a forward P/E of 12, Dell looks like a tech sector bargain backed by solid fundamentals with significant growth catalysts to reward shareholders over the long run.
3. Verizon Communications
Compared to shares of Alphabet and Dell Technologies, which have sold off in the first half of 2025, Verizon Communications (NYSE: VZ) stock has outperformed, up 10% year to date (although it’s still down about 29% from all-time highs hit in late 2020). Several tailwinds point to further upside.
In the first quarter (for the period ended March 31), Verizon’s revenue and EPS surpassed Wall Street estimates as recent price hikes drove steady growth. Company management is reaffirming its profitability outlook with an expectation for climbing free cash flow this year.
The telecom giant isn’t an obvious tech leader within the artificial intelligence revolution, yet its high-speed, low-latency connectivity services play a vital role in the AI ecosystem. Verizon’s strategic investments in fiber optics enhance its ability to deliver the high-capacity broadband connectivity essential for AI-driven applications and cloud services.
As an investment, Verizon shines through its 6.2% dividend yield and discounted valuation, trading at just 9 times its consensus 2025 earnings as a forward P/E. For investors seeking a blend of value, high-yield income, and exposure to tech sector themes, Verizon’s stock is a good choice for diversified portfolios.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $642,582!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $829,879!*
Now, it’s worth noting Stock Advisor’s total average return is 975% — a market-crushing outperformance compared to 172% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of May 12, 2025
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
