These Tech Stocks Are Dipping. Get In While You Still Can. - 6/28/24

While finding bargain stocks on the supercharged S&P 500 may seem challenging right now, there are still some exciting prospects. Recent dips in the stock prices of UiPath (NYSE: PATH) and Block (NYSE: SQ) not only offer opportunities for traders looking to capitalize on short-term gains but also hold the potential for significant upside in stock prices, sparking optimism in the market. 

UiPath (NYSE: PATH)

UiPath, a leader in robotic process automation (RPA), has seen its stock tumble by 35% following a disappointing Q1 report. Despite this setback, the company remains a dominant player in the RPA market, projected to grow at 40% annually through 2030. UiPath’s suite of AI-enhanced tools, including Document Understanding and Communication Mining, offers robust automation solutions that streamline business operations.

The company’s recent focus on generative AI with its Autopilot assistant showcases its strategic commitments. Autopilot, which automates various tasks and streamlines the development and testing of automations, has already garnered attention in the market. With founder Daniel Dines resuming the CEO role, there’s renewed optimism for steering the company through these turbulent times. Currently priced around $12.69, analysts at Morgan Stanley see a base-case target of $15 per share, suggesting significant upside potential.

Block (NYSE: SQ)

Block, the company behind Square and Cash App, is another tech stock experiencing a dip. Square’s comprehensive suite of hardware, software, and banking services simplifies commerce for merchants, setting it apart from traditional merchant service providers. Cash App offers a full range of consumer financial services, resonating well with the market despite stiff competition from the likes of PayPal and Venmo.

In Q1 2024, Block reported a robust 22% increase in total gross profit, reaching $2 billion. Non-GAAP net income surged nearly 100% to $0.85 per share. The company’s strategic initiatives, such as expanding the Square ecosystem internationally and enhancing Cash App functionalities, are showing promising results. Monthly transacting users of Cash App increased by 6% to 57 million, with inflows per user rising 11% to $1,255. Trading around $63 per share, Block offers a solid entry point for those looking to leverage its growth potential.

Both companies are innovating and expanding in their respective fields, making their current lower stock prices a potentially lucrative buy-low moment. 

Neither Sean Kelland nor Stocks.News have positions in these companies.