Tech Wreck 2024: 3 Oversold Stocks to Buy for the Next Decade 

The recent summer tech wreck seems more like an opportunity to buy oversold stocks before they start rallying again

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Even after last week’s nice relief rally, there are several oversold stocks out there that may make sense to buy in mid-August. Whether or not the relief bounce kicks into high gear, it’s hard not to act on many names that are close to the cheapest they’ve been in many months.

Of course, buying dips and corrections will not work out 100% of the time. Just because stocks are back in rally mode and the bearish developments that previously haunted investors have faded into the background doesn’t mean new highs are in sight. Some of the past week’s fastest movers could slip and stumble as we head into what could be a chilly fall for the entire market.

If you’re more focused on capturing opportunities to build wealth over the next decade rather than just the next few weeks, the following three names are seriously worth considering while they’re out of favor.

Alphabet (GOOG, GOOGL)

Alphabet (GOOGL) - Quantum Computing Stocks to BuyAlphabet (GOOGL) - Quantum Computing Stocks to Buy

Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) has been on the mend alongside the rest of tech in recent sessions. Still, GOOG stock hasn’t really ricocheted as sharply as some of its peers in the Magnificent Seven, now up less than 4% from its August lows.

A historic antitrust trial that didn’t go Google’s way is a large reason shares haven’t been nearly as quick to surge higher. As the Department of Justice (DOJ) contemplates taking more action (could an Alphabet breakup be in the cards in the distant future?) against the firm with monopolistic market positioning, it remains a rather uneasy time to be a GOOG shareholder.

The DOJ defeat may be bad news, but there have been some positive developments that have largely gone ignored of late. For instance, Google recently launched its AI-equipped Google Pixel 9. At just 23.8 times trailing price-to-earnings (P/E), I think it’s time to step in before the crowd moves on from the DOJ woes and the latest sell-off-inducing quarter.

Cisco Systems (CSCO)

the cisco (CSCO) logo on a wall

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Cisco Systems (NASDAQ:CSCO) is a networking equipment maker that’s been feeling the pressure of late. Like Intel (NASDAQ:INTC), Cisco is an old-school company that’s struggled to maintain a growth edge.

At writing, CSCO stock is down more than 28% from its December 2021 highs. And though the recent acquisition of Splunk could help Cisco break out of its latest funk, its depressed valuation makes the name most appealing in this tough tech environment.

Today, shares go for 15.3 times trailing P/E, making it one of the more intriguing deep-value names in the tech waters. Additionally, there’s a 3.53% dividend yield to collect while you wait for the company’s AI prowess to take effect.

Sure, you can’t cut your way to growth, but with more layoffs (around 4,000 in the latest wave) to precede AI-focused hiring, I do view Cisco’s longer-term trajectory as more sound. Just be ready to deal with near-term volatility as Cisco repositions its ship.

Vertiv (VRT)

A magnifying glass zooms in on the website for Veritiv (VRTV).

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Vertiv (NYSE:VRT) is one of the red-hot data center plays that went parabolic right up until shares nosedived off a cliff back in May 2024. Undoubtedly, not a whole lot has changed about the company’s impressive AI-driven growth story. It’s still a major beneficiary as enterprises continue to invest heavily in GPUs, servers, cooling systems and everything that goes into top-of-the-line data centers.

Last week, Mizuho (NYSE:MFG) upgraded VRT stock over its now more attractive valuation. Though the upgrade entailed a slight $3 trim to the price target (now at $92 per share), the implied upside is still quite sizeable based on where shares currently sit today at around $76 and change.

With newfound momentum to get behind and a now very modest 32.9 times forward P/E multiple, VRT stock seems ripe for picking if you’re bullish on what could be a multi-year AI infrastructure boom.

On the date of publication, Joey Frenette held a long position in Alphabet (Class C). The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor held a long position in GOOG.

Joey Frenette is a seasoned investment writer specializing in technology and consumer stocks. Contributing to the Motley Fool Canada, TipRanks, and Barchart, Joey excels in spotting mispriced stocks with long-term growth potential in a fast-paced market.

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