In an environment that is volatile and uncertain, itU+02019s quite difficult to identify winning bets. But as investing is a long-term play, you need to place your bets on companies that have strong fundamentals and solid profit margins. The tech-heavy Nasdaq Composite index is down almost 333% from all-time highs, which suggests several tech stocks are available at a massive discount.

Let’s take a look at two such tech stocks investors can buy right now.

 

Salesforce.com

One of the largest tech companies in the world, Salesforce.com (NYSE: CRM) is valued at a market cap of $147 billion. The stock is currently trading 53% below all-time highs due to the ongoing bear market. Despite the pullback, the stock has surged 265% in the last ten years.

Salesforce is the undisputed leader in the customer relationship management space, a market valued at more than $200 billion.

Its suite of subscription-based products is used by more than 150,000 companies globally. Salesforce’s Customer 360 cloud-based platform allows enterprises to gain easier access to data sets across verticals such as sales, marketing, and commerce.

In the last four quarters, Salesforce has generated close to $6 billion in free cash flow and $29 billion in sales. These two figures have surged by almost 200% in the last five years. In fact, Salesforce has grown its top line by 20% annually in the last ten years and is forecast to increase revenue from $26.5 billion in fiscal 2022 to $35.6 billion in fiscal 2024. 

Its adjusted earnings per share are also forecast to rise from $4.78 to $5.68 in this period. We can see that despite a challenging macro-environment, Salesforce continues to expand at an enviable pace.

It continues to expand its customer base as onboarded companies, including Workday (NASDAQ: WDAY) and Uber Technologies (NYSE: UBER), in recent quarters.

Due to the decline in CRM stock, the company’s management announced a share buyback program worth $10 billion as they believe Salesforce is undervalued. Currently, Salesforce is valued at 5x forward sales and 31.4x forward earnings, which might seem expensive.

Salesforce ended the recent quarter with more than $13.5 billion in cash, providing it with enough flexibility to reinvest in growth as well as acquisitions.

 

The Trade Desk

A programmatic ad company, The Trade Desk (NASDAQ: TTD) has returned close to 2,000% to investors since its IPO in 2017. But TTD stock is also down 48% from all-time highs, valuing it at $28.17 billion by market cap.

TTD stock is an ad-tech company and offers a buy-side platform enabling marketers to plan, measure and optimize targeted ad campaigns across multiple digital channels. The Trade Desk is an independent platform, suggesting it has no incentive to allocate inventory to ad buyers, allowing the company to onboard companies such as Walmart (NYSE: WMT) and Walt Disney (NYSE: DIS) in the connected TV segment.

In the last four quarters, TTD increased sales by 34% year-over-year to $1.4 billion. Comparatively, its free cash flow surged 70% to $476 million. But global ad spend is forecast to touch $1 trillion in the near future, providing enough room for the company to accelerate top-line growth.

TTD stock is valued at 20 times forward sales and 57.7 times forward earnings, which is very steep. But its sales are forecast to rise from $1.2 billion in 2021 to $2 billion in 2023.

Analysts remain bullish on TTD stock and expect shares to rise by 50% in the next year.

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