Michael Seto/Business Insider
Mark Mahaney, a financial analyst with RBC Capital Markets, thinks the recent sell-off in tech stocks was overdone.
- The prices of many tech stocks have plunged in recent months.
- Thanks to that sell-off, the shares of many companies are now trading at values that are out of whack with their real worth, RBC Capital Markets analyst Mark Mahaney argues in a new research note.
- Mahaney scrutinized more than 30 stocks to come up with his six top picks.
Thanks to the recent sell-off in tech stocks, you can find some great deals in the bargain bin.
That's the take of Mark Mahaney, one of the top analysts covering the internet sector. The selling was overdone, and the shares of many tech companies are now out-of-whack with their historical values and underlying business trends, RBC Capital Market's Mahaney argues in a research note issued Sunday afternoon.
But some stocks are more disconnected from their real worth than others. In his report, Mahaney took a look across the more than 30 companies he covers to find the best bargains.
He looked at companies' valuations compared with their historical value or underlying trends; how their growth in the third quarter compared with their past rates; and whether they were expected to have any fundamental changes in their businesses that might spark faster growth. After passing the companies through those screens, he came up with a list of six - three with large valuations and three with small or medium-sized valuations - top picks.
Here are Mahaney's internet sector best buys: