The tech-heavy Nasdaq Composite index has officially entered into correction territory, having fallen more than 10% from its record high set just a few weeks ago in July. Many high-flying tech stocks that saw massive rallies over the past two years have been hit the hardest in the recent market rout.
However, not all tech names are seeing red. In fact, some tech stocks have remained quite resilient and are still trading in the green despite the broader Nasdaq selloff. Many of these stocks could have further room to run, as their valuations still look reasonable. That’s even after investors factor in these stocks’ recent gains. If the overall market starts to find its footing and recover from the recent correction, it could provide an additional tailwind to boost their momentum.
That’s why I think it’s worth highlighting a few standout tech stocks that are bucking the downtrend and ignoring the ongoing Nasdaq weakness. Here are three bullish tech stocks I think can continue rallying from here.
CACI International (CACI)
CACI (NYSE:CACI) is one of the most consistent and stable companies out there. The company has been delivering consistent gains over the past few months, largely due to CACI’s strong public-sector growth. Government contracts are some of the stickiest contracts a company can have, and they often come with high margins.
That’s why investors in CACI stock have basically ignored the recent tech selloffs with this name. Indeed, a 26.7% move higher over just the past six months alone speaks to this company’s fundamental strength. And importantly, the company has shown strong recent results. CACI beat revenue estimates by 5.5% in Q2.
In Q4 2024, CACI reported a 20% revenue increase. For the full fiscal year, revenues grew 14%, exceeding expectations. And nearly 60% of its record $14 billion in contract awards were for renewed business. Currently, the company has an impressive order backlog of $28.6 billion.
Analysts are bullish on this stock, too. This past quarter, Cai von Rumohr of TD Cowen, Seth Seifman of JP Morgan, and Tobey Sommer of Truist Securities all raised their price targets on the stock.
When you combine CACI’s solid fundamentals with its history of beating expectations, I believe this under-the-radar stock is poised to keep climbing higher.
IBM (IBM)
IBM (NYSE:IBM) experienced a brief selloff earlier this year. However, IBM stock has rebounded well and delivered impressive returns to patient investors. Over the past year, shares of IBM have surged more than 35%. I believe Big Blue can continue its upward trajectory as it shifts its focus from slow-growing consulting to high-growth areas like cloud computing and quantum computing.
The latter space, in particular, could be a game-changer for IBM in the long-run. As AI becomes increasingly sophisticated, it will require massive amounts of computing power. Quantum computing is a technology that looks poised to meet that demand. IBM’s investments in this cutting-edge technology position it well for the future.
Moreover, IBM remains a cash cow, generating $4.5 billion in free cash flow in the first half of 2024 alone. The company also rewards shareholders with a generous 3.5% dividend yield.
I’m not surprised to see IBM stock performing so well. About two years ago, I pointed out that the company was pivoting toward high-growth industries. It’s gratifying to see that thesis playing out nicely so far.
GoDaddy (GDDY)
GoDaddy (NYSE:GDDY) provides domain registration and web hosting services for small businesses. The company has been making progress lately with its transition to focus more on e-commerce capabilities powered by AI, moving beyond just selling domains and web hosting.
The company’s core segment revenue has remained flat at $2.8 billion. So, I believe this strategic shift has breathed new life into GoDaddy’s growth story. Notably, GDDY stock has surged 116% over the past year with no signs of any sort of growth slowdown. Even the recent tech selloff couldn’t damper GoDaddy’s rally.
In its latest earnings report, GoDaddy posted revenue of $1.12 billion, beating estimates, with net income jumping to $146 million. Bookings also grew over 10% to $1.26 billion. Analysts are praising GoDaddy as an “essential one-stop shop for micro-businesses,” and several have buy ratings on the stock with price targets as high as $190 per share.
I think this rally can continue for GoDaddy investors. Indeed, the company’s valuation looks quite reasonable for a tech stock posting this kind of growth.
On the date of publication, Omor Ibne Ehsan did not hold (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.