There could be a buying opportunity in these beaten-up Nasdaq stocks

Published Wed, Apr 27 20229:14 AM EDT

Investors may find buying opportunities in the beaten-up tech sector that's been the focus of an April market sell-off, sinking the Nasdaq 4% to its worst day since 2020 on Tuesday. As the Nasdaq falls deeper into bear market territory, CNBC Pro searched for battered technology stocks offering strong potential returns to investors looking for bright spots in the sector. We found the best picks by scoping out stocks that are loved by analysts, 70% say to buy them and their shares could bounce back more than 20%, according to their consensus price targets. Here are some of the technology names that made the list: The chip sector has been one of the hardest-hit industries in technology as it grapples with slowing consumer demand amid rising inflation and supply chain troubles and three companies made the list. Amid the sell-off, Nvidia , Marvell Technology and Micron Technology have plummeted 36.1%, 33.8% and 28%, respectively, this year. Meanwhile, the iShares Semiconductor ETF which tracks chip stocks has cratered more than 26% and Goldman Sachs is betting against the industry, recently cutting chip sector EPS estimates and downgrading several stocks amid a ‘challenging’ economy. But the downfall could mean a buying opportunity for investors as each stock offers more than 62% upside to analyst targets based on consensus estimates, with Nvidia offering a potential 74.6% return based on the consensus stock price target. Shares of Align Technology have fallen 45% since the start of the year, marking the largest drop among the stocks that made the list. But brighter moments could come for the maker of Invisalign and bring a potential 68% return based on the consensus target. The orthodontics company is also set to report earnings after the bell Wednesday and r ecent data from Bespoke suggests it beats estimates 82% of the time , after which its shares rise 3.73% on average. Like other technology stocks, pandemic beneficiary Match Group is no stranger to the sell-off. The stock has dropped nearly 40% year to date but could gain 84.4% based on consensus targets. Loop Capital's Laura Champine recently initiated coverage of the online dating stock with a buy rating , saying in a note to clients that she sees strong growth for Match Group and its strong subscriber base could bring success in the metaverse.

A sign is posted in front of the Nvidia headquarters on May 10, 2018 in Santa Clara, California.

Justin Sullivan | Getty Images

Investors may find buying opportunities in the beaten-up tech sector that's been the focus of an April market sell-off, sinking the Nasdaq 4% to its worst day since 2020 on Tuesday.

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There could be a buying opportunity in these beaten-up Nasdaq stocks

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