3 technology stocks to buy at their 52-week lows

By:
on Nov 29, 2021
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  • PayPal stock has crashed as growth concerns remain.
  • Roku shares have dropped as growth and competition risks remain.
  • Zoom Video has sold-off as rotation from lockdown stocks intensify.

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American stocks have done relatively well this year. The Nasdaq 100, S&P 500, and Dow Jones have all surged by more than 18%. This is a remarkable performance especially after the strong growth experienced in 2020. While technology companies have generally done well, some have struggled. Let us look at some of the best Nasdaq 100 stocks to pick at their 52-week lows.

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PayPal 

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PayPal (NASDAQ: PYPL) stock price has struggled this year. The shares have dropped by more than 40% from their all-time high and are currently trading at a 52-week low. Precisely, the PYPL stock is trading at its lowest level since November 2020.

The PayPal stock price has lagged because investors expect that the company will struggle to find growth in the future. Besides, it did relatively well in 2020 as more people spent time at home.

However, we believe that the shares will bounce back in the long term. Besides, PayPal is today one of the biggest fintech companies in the world. It has created a strong brand that has more than 425 million customers from around the world. Therefore, I expect that the company will continue to see more growth going forward.

Indeed, analysts are optimistic about the company’s stock. According to Webull, the average target of the PayPal stock is about $281, which is substantially higher than the current level. 

PayPal stock

Roku 

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Roku (NASDAQ: ROKU) stock price has fallen out of favour from investors as concerns about growth remains. The stock has crashed to $228, which is about 55% below the year-to-date high. It is trading at the lowest level since November last year. 

This decline is mostly because of valuation concerns. Besides, at its peak, the company was valued at more than $40 billion, which is a relatively pricey valuation.

There are also concerns about market share as competition with the likes of Amazon and Google intensifies. Many investors believe that the company has seen its brighter days.

Still, there is a likelihood that the Roku stock price will bounce back. The average estimate by analysts is that the stock will rise to almost $400. 

Roku stock

Zoom Video

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Zoom Video (NASDAQ: ZM) stock was the darling of Wall Street at the height of the Covid-19 pandemic. This love affair ended this year as the stock has crashed by more than 63% from its highest level on record.

This underperformance is easy to understand. Investors expect that the demand for video meetings will fade as people go back to the office and schools reopen. Also, there are concerns about competition from companies like Facebook and Microsoft.

There is some truth in that. However, in the long term, the demand for video conferences will remain as companies embrace a hybrid work system. Therefore, there is a likelihood that the Zoom stock price will bounce back in 2021.

Zoom Video
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