The coronavirus has decimated companies across multiple sectors including airlines, energy, hospitality, and retail. At the same time, the pandemic has acted as a tailwind for tech companies, driving stocks in this sector to record highs.
The broader markets entered bear market territory in March and soon recovered to trade at pre-COVID-19 levels within a few months, primarily driven by the stellar performance of mega-cap tech companies.
This means there are stocks trading at a lower valuation that have the potential to outperform the broader markets as we enter the fourth quarter of the year. Let’s take a look at three tech stocks that are trading at a discount to sell-side price target estimates.
Digital Transformation Heavyweight Adobe: The first company on the list is Adobe Inc. (NASDAQ: ADBE),