Once the genie came out of the artificial intelligence bottle, there was no way it was ever going back in. The run the top AI stocks have made in 2023 is nothing short of spectacular. Some veteran traders are reminded of the late 1990s and early 2000 dot-com explosion, however, for top companies like Nvidia, earnings are exploding higher and may continue to for some time.
Anxious aggressive growth investors are experiencing the FOMO, or “fear of missing out,” and many are chasing these top companies higher. While those with a very long time horizon should be fine even buying shares at current levels, some recent solid reports by legacy tech companies are starting to get noticed, and some of the best technology sector values may lie with the old-school leaders.
We screened our 24/7 Wall St. legacy technology database looking for stocks that are rated Buy and offering investors solid upside from current trading levels. Seven top companies made the cut, and all look like outstanding ideas for the rest of 2023. While all are Buy rated, it is important to remember that no single analyst report should be used as a sole basis for any buying or selling decision.
AT&T
This legacy telecommunications company has been going through a long restructuring, has lowered its dividend and has sold off or merged underperforming assets. AT&T Inc. (NYSE: T) provides telecommunications, media and technology services worldwide.
Its Communications segment offers wireless voice and data communications services and sells handsets, wireless data cards, wireless computing devices with carrying cases and hands-free devices through its own company-owned stores, agents and third-party retail stores.
AT&T also provides data, voice, security, cloud solutions, outsourcing and managed and professional services, as well as customer premises equipment for multinational corporations, small and midsized businesses, and governmental and wholesale customers. In addition, it offers broadband fiber and legacy telephony voice communication services to residential customers.
It markets its communications services and products under the AT&T, Cricket, AT&T Prepaid and AT&T Fiber brand names. The company’s Latin America segment provides wireless services in Mexico and video services in Latin America. This segment markets its services and products under the AT&T and Unefon brand names.
Recent negative press over the potential clean-up of lead landlines has caused the stock to be crushed. However, with huge cash flow and a solid customer base, this could be a massive total return win as the dividend remains safe.
Investors receive a 7.68% dividend. Deutsche Bank has a $22 price objective for AT&T stock. The consensus target is $17.46, and the stock closed on Monday at $14.52.
Cisco
Investors who are more conservative may want to consider this mega-cap tech leader, which posted outstanding quarterly results earlier this year. Cisco Systems Inc. (NASDAQ: CSCO) designs, manufactures and sells internet protocol (IP) based networking products and services related to the communications and information technology industry worldwide.
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