Betting Big: 3 Tech Stocks Primed for a Breakout

Stocks to buy

The fervor around tech stocks to buy now has been palpable this year, with several household names reaching unprecedented heights. However, with such meteoric runs, many investors are left wondering which opportunities still hold genuine upside potential, especially in a market that seems, at times, overextended.

Hidden within the vast landscape of the tech sector are those unheralded gems that don’t make the headlines as often as their giant counterparts. The reality is, in a sea of thousands of publicly traded companies, it’s virtually impossible for the mainstream business media to cover them all. This often results in some viable tech contenders flying under the radar, overshadowed by the established titans.

For the discerning investor with a contrarian spirit, these overlooked tech firms could present an untapped reservoir of potential. Indeed, adopting a contrarian approach can be fraught with risks. Still, with thorough research and a prudent approach, investors can reap significant rewards with the tech stocks to buy now.

Tech Stocks to Buy Now: Rambus (RMBS)

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A technology solutions company, Rambus (NASDAQ:RMBS) focuses on semiconductor and intellectual property products. Specifically, its core expertise centers on memory interface chips, designing and developing chip interface technologies and architectures. Also, a large chunk of revenue stems from licensing IP to other companies. This arena relates to the high-speed interface technology used in many computer memory and chip interfaces.

Frankly, Rambus sounds relevant because it is relevant. Since the start of the year, RMBS gained almost 56% of its equity value, making it one of the sector’s top performers. However, with such a robust performance, fears exist about holding the bag. However, RMBS could still be one of the tech stocks to buy now.

Financially, it may not be a steal that it once was. However, Rambus sports strong revenue growth and healthy profit margins. It also features a cash-rich balance sheet, thus being built for the long haul. Better yet, analysts peg RMBS as a unanimous strong buy with a $71 price target, implying over 30% upside.

Zai Lab (ZLAB)

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A biopharmaceutical company, Zai Lab (NASDAQ:ZLAB) focuses on bringing transformative medicines for cancer, autoimmune and infectious diseases to patients in China and around the world. Naturally, the Covid-19 crisis cynically put a bright spotlight on the underlying subsegment. However, Zai’s research and development features a far reach, spotlighting multiple late-stage clinical trials.

Although scientifically relevant, biotech specialists tend to be volatile affairs. Therefore, it’s not terribly surprising that ZLAB struggled this year. Since the January opener, shares tumbled almost 18%. In the past 365 days, the security gave up nearly 41% of equity value. Still, it could be one of the tech stocks to buy now. While its financials may not be sterling, Zai Lab benefits from strong revenue growth. Also, it commands a cash-rich balance sheet, enabling the company flexibility during these rough times.

Best of all, analysts rate ZLAB a unanimous strong buy with a $58.55 price target, implying nearly 131% growth.

Blade Air Mobility (BLDE)

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Likely the most popular entity on this list of tech stocks to buy now, Blade Air Mobility (NASDAQ:BLDE) specializes in urban air mobility. Specifically, the company provides helicopter and short-distance aviation services, mainly for passenger travel in urban environments. As other analysts have noted, Blade Air’s operations represent a precursor to the anticipated rise of electric vertical takeoff and landing (eVTOL) aircraft.

Still, as attractive as the eVTOL market may be, investors are worried, sending BLDE down almost 15% since the start of the year. Timing matters too, with the red ink coming amid a rotation away from risk-on assets. Nevertheless, the volatility may present an opportunity for speculators interested in compelling tech stocks to buy now.

To be sure, prospective investors will be banking heavily on Blade’s narrative component. However, the company offers enticing financial attributes, such as solid revenue growth and relatively strong cash holding. Finally, analysts rate BLDE as a unanimous strong buy with an $8.67 price target, implying 200% upside.

On the date of publication, Josh Enomoto did not have (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.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.