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Buy 3 Tech Stocks on the Dip to Strengthen Your Portfolio in Q4
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Key Takeaways
DOCU's subscription model and partnerships with Salesforce and Microsoft fuel steady global growth.
RDDT gains momentum from user engagement, AI-driven tools and advertiser integrations like Smartly.io.
FICO expands with new scoring models and robust SaaS adoption, driving strong revenue and earnings growth.
The recent bull market on Wall Street has shown no signs of abatement even after three years. Although most of the rally has been driven by an unprecedented adoption of generative artificial intelligence (AI) technology across the world, cyclical sectors, such as industrials, financials, consumer discretionary and utilities have also taken part.
The bull run is expected to continue in the near future supported by a resilient U.S. economy, a declining inflation rate, solid earnings results, and the Fed’s re-initiation of a low-interest rate regime and accommodative monetary policies.
Despite the rally, several technology stocks have slid from their 52-week highs and are currently available at attractive valuations. Here we recommend three such stocks with a favorable Zacks Rank. These are: DocuSign Inc. (DOCU - Free Report) , Reddit Inc. (RDDT - Free Report) and Fair Isaac Corp. (FICO - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DocuSign Inc.
DocuSign’s strength lies within its subscription revenues, which have accounted for the majority of its top line over the past three years. DOCU continues to translate its selling expenses into international growth efficiently.
The same can be said about its R&D focus, which has driven product enhancements, improved customer experience and helped retain a growing customer base. DOCU’s strong relationships with tech giants like Salesforce and Microsoft further support this ecosystem. DOCU has deepened its relationships with tech giants such as Salesforce and Microsoft.
DocuSign has an expected revenue and earnings growth rate of 7.1% and 3.9%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for the current-year earnings has improved 0.5% over the last 30 days.
DOCU is currently trading at a 37% discount from its 52-week high. The short-term average price target of brokerage firms for the stock represents an increase of 37.3% from the last closing price of $67.91. The brokerage target price is currently in the range of $70-$124. This indicates a maximum upside of 82.6% and no downside.
Reddit Inc.
Reddit is a social media and community-led platform that enables real-time discovery, conversation and engagement across a wide range of interest-based forums. RDDT is benefiting from strong growth in user engagement, including rising daily and weekly active users, ARPU gains and expanding advertiser tools like DPA, Reddit Pixel and CAPI.
RDDT’s AI-powered features, including Reddit Answers, are key catalysts in enhancing content discovery and personalization. Reddit Answers has more than six million weekly users. RDDT aims to deepen advertiser onboarding and improve campaign outcomes through integrations with Smartly.io and Meta Platforms’ campaign import tool. AI infusion is driving the international user base, which is noteworthy.
Reddit has an expected revenue and earnings growth rate of 58.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% in the last 30 days.
RDDT is currently trading at a 40.9% discount from its 52-week high. The short-term average price target of brokerage firms for the stock represents an increase of 11.8% from the last closing price of $200.76. The brokerage target price is currently in the range of $110 to $300. This indicates a maximum upside of 49.4% and a downside of 45.2%.
Fair Isaac Corp.
Fair Isaac is benefiting from strong financial performance driven by robust growth in its Scores and Software segments. FICO has expanded its scoring models to incorporate ‘Buy Now, Pay Later’ loan data, enhancing the predictive accuracy of FICO scores.
Advancements in credit modeling, including the development of FICO Score 10T for non-GSE mortgages, present significant growth opportunities. The Software segment has demonstrated strength, with increased adoption of SaaS and license revenues indicating strong platform engagement. FICO's Lenders Leading Inclusion Program supports lenders in making better decisions.
Fair Isaac has an expected revenue and earnings growth rate of 19.6% and 30.7%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for current-year earnings has improved 0.1% in the last 30 days.
FICO is currently trading at a 31.9% discount from its 52-week high. The short-term average price target of brokerage firms for the stock represents an increase of 21.1% from the last closing price of $1,636.65. The brokerage target price is currently in the range of $1,047 to $2,400. This indicates a maximum upside of 46.6% and a downside of 36%.
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Buy 3 Tech Stocks on the Dip to Strengthen Your Portfolio in Q4
Key Takeaways
The recent bull market on Wall Street has shown no signs of abatement even after three years. Although most of the rally has been driven by an unprecedented adoption of generative artificial intelligence (AI) technology across the world, cyclical sectors, such as industrials, financials, consumer discretionary and utilities have also taken part.
The bull run is expected to continue in the near future supported by a resilient U.S. economy, a declining inflation rate, solid earnings results, and the Fed’s re-initiation of a low-interest rate regime and accommodative monetary policies.
Despite the rally, several technology stocks have slid from their 52-week highs and are currently available at attractive valuations. Here we recommend three such stocks with a favorable Zacks Rank. These are: DocuSign Inc. (DOCU - Free Report) , Reddit Inc. (RDDT - Free Report) and Fair Isaac Corp. (FICO - Free Report) . Each of our picks currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DocuSign Inc.
DocuSign’s strength lies within its subscription revenues, which have accounted for the majority of its top line over the past three years. DOCU continues to translate its selling expenses into international growth efficiently.
The same can be said about its R&D focus, which has driven product enhancements, improved customer experience and helped retain a growing customer base. DOCU’s strong relationships with tech giants like Salesforce and Microsoft further support this ecosystem. DOCU has deepened its relationships with tech giants such as Salesforce and Microsoft.
DocuSign has an expected revenue and earnings growth rate of 7.1% and 3.9%, respectively, for the current year (ending January 2026). The Zacks Consensus Estimate for the current-year earnings has improved 0.5% over the last 30 days.
DOCU is currently trading at a 37% discount from its 52-week high. The short-term average price target of brokerage firms for the stock represents an increase of 37.3% from the last closing price of $67.91. The brokerage target price is currently in the range of $70-$124. This indicates a maximum upside of 82.6% and no downside.
Reddit Inc.
Reddit is a social media and community-led platform that enables real-time discovery, conversation and engagement across a wide range of interest-based forums. RDDT is benefiting from strong growth in user engagement, including rising daily and weekly active users, ARPU gains and expanding advertiser tools like DPA, Reddit Pixel and CAPI.
RDDT’s AI-powered features, including Reddit Answers, are key catalysts in enhancing content discovery and personalization. Reddit Answers has more than six million weekly users. RDDT aims to deepen advertiser onboarding and improve campaign outcomes through integrations with Smartly.io and Meta Platforms’ campaign import tool. AI infusion is driving the international user base, which is noteworthy.
Reddit has an expected revenue and earnings growth rate of 58.6% and more than 100%, respectively, for the current year. The Zacks Consensus Estimate for current-year earnings has improved 0.5% in the last 30 days.
RDDT is currently trading at a 40.9% discount from its 52-week high. The short-term average price target of brokerage firms for the stock represents an increase of 11.8% from the last closing price of $200.76. The brokerage target price is currently in the range of $110 to $300. This indicates a maximum upside of 49.4% and a downside of 45.2%.
Fair Isaac Corp.
Fair Isaac is benefiting from strong financial performance driven by robust growth in its Scores and Software segments. FICO has expanded its scoring models to incorporate ‘Buy Now, Pay Later’ loan data, enhancing the predictive accuracy of FICO scores.
Advancements in credit modeling, including the development of FICO Score 10T for non-GSE mortgages, present significant growth opportunities. The Software segment has demonstrated strength, with increased adoption of SaaS and license revenues indicating strong platform engagement. FICO's Lenders Leading Inclusion Program supports lenders in making better decisions.
Fair Isaac has an expected revenue and earnings growth rate of 19.6% and 30.7%, respectively, for the current year (ending September 2026). The Zacks Consensus Estimate for current-year earnings has improved 0.1% in the last 30 days.
FICO is currently trading at a 31.9% discount from its 52-week high. The short-term average price target of brokerage firms for the stock represents an increase of 21.1% from the last closing price of $1,636.65. The brokerage target price is currently in the range of $1,047 to $2,400. This indicates a maximum upside of 46.6% and a downside of 36%.