The Barron's article titled "Quality Stocks Are on Deep Discount. 7 Ideas to Buy" argues that high-quality stocks are trading at significant discounts amid market conditions, presenting buying opportunities.
It highlights seven such stocks, including:
AT&T (T)
General Motors (GM)
Expedia Group (EXPE)
Chevron (CVX)
Merck (MRK)
(and two others not specified in the URL).
The piece emphasizes these companies' strong fundamentals, such as reliable cash flows, competitive advantages, or growth potential, while noting they are undervalued relative to peers or historical norms (e.g., low P/E ratios or discounts to estimated fair value).
The overall advice is bullish on selectively investing in these "quality at a reasonable price" names for potential outperformance. (Note: Direct page content access was limited, likely due to paywall restrictions.)
As of late December 2025, several technology stocks appear undervalued based on analyst fair value estimates, forward P/E ratios below sector averages, and growth potential in areas like AI infrastructure, semiconductors, networking, and software. These stand out from recent analyses (e.g., Morningstar, Motley Fool, Yahoo Finance/Zacks), offering a mix of established giants and specialized players—distinct from the non-tech focus of the original Barron's article on stocks like AT&T, GM, and Expedia.
Here are some notable undervalued tech stocks to consider:
Micron Technology (MU): A leader in memory semiconductors benefiting from AI data center demand. Analysts highlight it as undervalued despite strong 2025 performance, with expected shifts to AI inference workloads driving growth. Trades at attractive multiples relative to earnings forecasts.
Applied Materials (AMAT): Key player in semiconductor equipment, poised for gains from AI buildouts and chip manufacturing expansion. Frequently cited as undervalued with solid long-term prospects in the evolving AI ecosystem.
Cisco Systems (CSCO): Networking giant with stable cash flows, dividends, and exposure to enterprise AI infrastructure. Seen as deeply discounted compared to peers, with potential upside from recovery in corporate spending.
Salesforce (CRM): Cloud CRM leader integrating AI features. Noted for trading below industry P/E averages amid broader tech resilience, with accelerating enterprise AI adoption supporting growth.
Qualcomm (QCOM): Chip designer focused on mobile and edge AI. Highlighted for undervaluation, dividend yield, and growth in new mobility/AI designs.
Alphabet (GOOGL): Dominant in search, cloud (growing rapidly), and AI. Viewed as reasonably valued (P/E around 30 vs. higher sector averages) with strong ad revenue and cloud backlog.
Sabre (SABR) and Globant (GLOB): Smaller-cap tech services firms (travel tech and digital transformation). Morningstar rates them as significantly undervalued (40%+ discounts to fair value) with narrow moats and recovery potential.
These picks reflect a consensus from diverse sources emphasizing fundamentals over hype. Valuations can shift quickly, so consider current metrics and risks like economic slowdowns or AI spending cycles. Tech remains volatile but offers value opportunities outside mega-cap leaders. |
