The broader markets are in the midst of a correction. At the start of the week, the Dow Jones Industrial Average was down 14% from the previous seven trading sessions, and other indexes such as the S&P 500 are also trading below record highs.

The fears over fallout from the growing novel coronavirus outbreak have investors concerned. The coronavirus strain known as SARS-CoV-2 causes a respiratory illness called COVID-19. As of March 4, this virus has claimed at least 3,250 lives and infected over 95,000 people in more than 80 countries.

This outbreak has triggered the recent sell-off in global equity markets. Tech stocks have moved lower as several companies have cut forecasts for 2020. While this is most likely a short-term weakness, several stocks are now trading at relatively cheaper valuations.

Here three tech stocks that have strong fundamentals, impressive growth forecasts, and expanding addressable markets, making them solid bets for long-term investors looking to hold onto a stock for the next decade. 

Upward growth metrics graph in front of person and city silhouettes

Image source: Getty Images.

1. Alteryx is a leader in the data analytics space

Shares of Alteryx (NYSE:AYX) went public at $14 per share on March 14, 2017, and have since increased by about 930%. So, a $1,000 investment in Alteryx IPO will have ballooned to $9,340 today. In the last year, shares have gained 116%, easily outperforming broader markets. The stock is, however, trading 9.6% below record highs due to overall market weakness.

Alteryx is a market leader in the data analytics space. The big data vertical remains one of the fastest-growing globally, and Alteryx stands to benefit from this rapid advance.

Alteryx offers a comprehensive data analytics platform where users without any coding experience can use it to create robust models and workflows, making it extremely user-friendly.

In 2019, the company increased sales by 65%, driven by strong customer retention and customer acquisition metrics. Net customer expansion for 2019 was 130%, which means existing customers increased spending by 30%. The company also added 474 customers, increasing its total customer base to 6,100. This includes 36% of the Global 2000 companies.

Though revenue growth is decelerating, it continues to expand at a stellar pace. Wall Street analysts expect sales to touch $564 million in 2020, $730 million in 2021, and $968 million in 2022, making it one of the top growth stocks to buy and hold in the long term.

2. Splunk has gained 15% in the last year

Another company that is betting big on the data analytics space is Splunk (NASDAQ:SPLK). Company shares have gained over 700% since its IPO in March 2012. But there is a lot of steam left for long-term investors.

Splunk has managed to grow its sales from $950 million in fiscal 2017 to $1.8 billion in fiscal 2019. For 2020, the consensus revenue forecast stands at $2.35 billion. Splunk has also expanded its customer base from 13,000 customers in 2017 to 19,000 at the end of October 2019, which has been a key driver for top-line growth. 

Splunk has estimated its total addressable market at $62 billion, which has almost doubled since its IPO. Another reason why Splunk is a solid bet is the company's shift to a subscription-based model for its cloud-based products.

In 2019, Splunk moved to a software-as-a-service model, which will help the company generate a stable stream of recurring revenue. This will also help decrease cyclicality and ensure robust growth in cash flow, driving the stock price higher. 

3. Shopify is a Canadian tech giant

Canadian e-commerce heavyweight Shopify (NYSE:SHOP) has been another winner for early investors. The stock has gained a staggering 1,700% since its IPO in May 2015. However, driven by the market weakness, the stock is currently trading 13.7% below record highs.

Investors are betting big on Shopify due to massive growth opportunities in the e-commerce segment. The company's gross merchandise volume (GMV) in 2019 totaled $61 billion, but this still accounted for just 1% of the global e-commerce spending.

While e-commerce spending is estimated to grow at an annual rate of 20%, analysts tracking Shopify estimate company sales to grow by 37% in 2020 and 33.6% in 2021.

Shopify offers various tools for merchants, including digital storefronts, payment tools, and other add-on services. The demand for its services has grown at an exponential rate over the years, as small and mid-size businesses continue to expand product and service offerings. 

Shopify has enough growth drivers, including international expansion and development of its fulfillment networks. The acquisition of warehouse automation specialist 6 River Systems can help Shopify challenge market leader Amazon in the next decade, making it an enviable pick among growth stocks

What next for investors?

The three stocks have moved lower in recent weeks but are still trading at expensive valuations. Alteryx is valued at 16 times forward sales, while Splunk and Shopify are valued at 9.8 and 24.7 times forward sales. 

Their high valuation means these stocks will be volatile, especially if the broader market correction persists and if it goes down so far as to enter bear-market territory. However, as it is impossible to time the market, investors can look to buy these growth stocks at every major dip, giving them enough opportunities to create long-term wealth.