4 Undervalued Growth Stocks to Buy and Hold for the Long Term

Key Points

• Some growth stocks have reached undervalued levels during the tech market sell-off, creating long-term opportunities for investors.
• Equifax and Taiwan Semiconductor Manufacturing trade near a 50-day low despite meeting EPS estimates, with growing demand driving analyst upside estimates.
• ServiceNow and Zscaler show strong upside potential, with analysts forecasting 32.55% and 15.42% gains, respectively, as they expand in IT automation and cybersecurity.

While most investors favor bull markets, bear markets offer unique opportunities to buy strong companies at lower prices. As the Nasdaq pulled back on Tuesday, analysts evaluated tech stocks for buying opportunities and identified potential long-term investments.

Investors looking to take advantage of lowered prices and high analyst hopes may want to consider exploring the following four growth tech stocks, which analysts say could be headed for long-term appreciation. 

Equifax Meets EPS Estimates, Brings Analyst Upside 

While the tech market, in general, has been hit following dips in both the S&P 500 and the Nasdaq Composite index, Equifax NYSE: EFX has had an especially bad month. 

Following an antitrust lawsuit last month and an order to pay $15 million to consumers over credit item disputes, shares are now trading near a new 50-day low of about $235 per share Wednesday morning. 

Still, the growing demand for virtual credit report services could be fueling analysts’ optimism for Equifax. Analysts give this company a Moderate Buy consensus rating, with upgrades after last quarter’s earnings results, which saw profits meet analyst expectations and just a 1.67% increase in share interest since last month.

Analysts predict that shares of Equifax are currently undervalued by about 26.88% from its active trading bread. 

ServiceNow Sees Potential 30% Upside From Current Low Prices

IT service software provider ServiceNow NYSE: NOW now provides end-to-end intelligent workflow and automated platform services, making it a top choice for mid- to large-scale customer service and management solutions. Institutional investment trends indicate that analysts expect future growth for ServiceNow despite recent stumbles in share price. 

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Analyst forecasts for ServiceNow are largely positive, with analysts giving this company a Moderate Buy consensus rating. With a robust portfolio of IT service solutions and organic success, current price dips may be an overcorrection based on the total market downturn. 

Analysts predict a potential 32.55% upside for ServiceNow, with a consensus fair price of $1,100 per share—almost $200 more than its current price of $830 per share. 

Before investing in ServiceNow, it’s important to note that the company’s P/E ratio is exceptionally high for the software industry at 121.54. Future cash flow management and the rollout of its new NVIDIA-supported tools will both play a role in determining how high shares can climb.  

Cybersecurity Service Zscaler Is in a Prime Position for Growth

After reporting strong earnings in the fourth quarter, investors are turning their eyes to Zscaler NASDAQ: ZS for the potential it brings with new partnerships.

It recently announced an agreement to buy California-based agentic AI assistant provider Moveworks for $2.85 billion, further expanding its range of integrated services. 

Unlike other picks on our list, Zscaler is not seeing price suppression alongside the general tech market, trading at around $200 per share.

Analyst consensus ratings put this service provider at a Moderate Buy, with a 15.42% potential upside. Earnings have been on a steady incline since 2021, a trend analysts indicate may continue. 

Market Dominance, Earnings Cause Institutional Investors to Buy Into TSM

With an almost 60% share of the global market for dedicated contract chip manufacturing, Taiwan Semiconductor Manufacturing NYSE: TSM is in a great position to benefit from growing AI complexity.

As the company aims to ramp up the production of its hip-on-wafer-on-substrate capacity throughout 2025, analysts have given TSM a consensus target price of $220 per share with a Moderate Buy rating. 

TSM has one of the lowest P/E ratios on our list, at 24.56. In mid-March, shares touched a new 50-day low price of about $170 per share. 

With an almost 28% potential upside, a strong position within a growing industry and earnings values that consistently beat analyst estimates, TSM could be a valuable long-term portfolio pick. It even offers a respectable dividend yield of 1.26%, supported by an impressive 19.21% three-year growth rate.