Have $8,000? These 3 Stocks Could Be Bargain Buys for 2025 and Beyond

DigitalOcean - DigitalOcean is a cloud infrastructure company targeting small businesses and independent developers with affordable server solutions, carving out a niche in a market dominated by enterprise giants like Amazon and Microsoft [1] - From 2018 to 2023, DigitalOcean's revenue grew at a CAGR of 28%, and it turned profitable in 2023 [2] - From 2023 to 2026, analysts expect its revenue and EPS to grow at a CAGR of 13% and 85%, respectively [2] - The company expanded its AI market exposure by acquiring Paperspace in 2023, adding GPU-powered servers to its platform [3] - From fiscal 2024 to fiscal 2027, revenue and EPS are expected to grow at a CAGR of 12% and 21%, driven by the generative AI market [4] - DigitalOcean's stock is valued at 40 times forward earnings and 29 times forward earnings in different periods, with a forward dividend yield of 0.8% [3][4] - The company has bought back more than a third of its shares over the past decade [4] Oracle - Oracle is one of the world's largest database software companies, transitioning from on-site applications to cloud-based infrastructure and software services [9] - From fiscal 2019 to fiscal 2024, Oracle's revenue and EPS grew at a CAGR of 6% and 5%, respectively [9] - The company acquired NetSuite and Cerner to accelerate its cloud evolution [9] Dell - Dell returned to the public market in 2018 as a more streamlined company after being taken private in 2013 [5] - From fiscal 2019 to fiscal 2024, Dell's annual revenue declined due to the spin-off of VMware in 2021 and a sluggish PC market [5] - From fiscal 2024 to fiscal 2027, analysts expect Dell's revenue and EPS to grow at a CAGR of 8% and 24%, respectively, driven by AI server business expansion and PC market stabilization [10] - Dell's stock is valued at 12 times forward earnings, with a forward yield of 1.3% [10] Market Context - DigitalOcean, Oracle, and Dell are highlighted as undervalued tech stocks with strong growth potential [8] - The S&P 500 has delivered average annual total returns of over 10% since 1957, suggesting long-term market growth potential [7]