5 Cheap Tech Stocks to Buy That Have Great Potential
[Editor’s note: This story was previously published in May 2019. It has sincebeen updated and republished.]Given their surge over the last few years, tech stocks aren’t cheap, at leastwhen it comes to their actual share prices. Top leaders like Amazon(NASDAQ:AMZN) and Google (NASDAQ:GOOG, NASDAQ:GOOGL) can be had for north of agrand per share, while even smaller tech stocks like ServiceNow (NASDAQ:NOW)can be had for over $100 per share. And while, as we said before, “price iswhat you pay, value is what you get,” there is something about buying cheapstocks that can result in higher returns.So, if it was possible to combine the potential of tech stocks with thefinancial advantages of low-priced ones, you’d have very powerful weaponindeed.Luckily, there are a number of those stocks to buy. These cheap tech stockscan be had for under $15 per share, and many of them have plenty of catalyststo propel them forward. They aren’t without risk, but they do have plenty ofreward potential. So which of those stocks should you look to buy?Here are five cheap tech stocks to buy for your portfolio.
* Market value: $179.8 million * TipRanks consensus price target: $9.38 (54% upside potential) * TipRanks consensus rating: Strong Buy * Adesto Technologies (IOTS, $6.11) is a leading developer of semiconductors including non-volatile memory solutions, application-specific integrated circuits and intellectual property cores.Four analysts are currently covering IOTS, and all four have “Buy” ratings onthe stock. One of these pros is Canaccord Genuity’s Michael Walkley. Thisfive-star analyst recently reiterated his bullish call on the stock with a $9price target (47% upside potential).“Our positive investment thesis is based on our expectation that strong(Internet of Things) endpoint growth over the next several years will requirelow-power and long-battery-life solutions that should benefit Adesto’sportfolio and its differentiated memory solutions,” he writes. “We believe newproducts including MavriqCM and EcoXiP address new large market opportunitiesand even modest share gains could result in upside versus our estimates andconsensus.”Walkley thinks this will drive strong revenue growth and generate significantoperating leverage. He now believes the company will go from a non-GAAP netloss in 2018 to a 43-cent-per-share profit in 2020. He concludes, “We believeAdesto is uniquely positioned with its products to generate strong long-termearnings growth.”For further insights on this tech stock, turn to TipRanks’ IOTS ResearchReport.
* Market value: $526.7 million
* TipRanks consensus price target: $4.50 (23% upside potential) * TipRanks consensus rating: Moderate Buy * Castlight Health (CSLT, $3.67) is a cloud-based software provider that focuses on health benefits management. Its Complete app makes it easy for employees to use their benefits and provides tailored health recommendations all on one single platform.“After launching Castlight Complete, which was one of the key milestones for2018, management remains confident it can overcome churn and the loss ofWalmart,” writes five-star Cantor Fitzgerald analyst Steven Halper. Walmart(WMT) revealed that it wouldn’t be migrating to the new Complete platform backin August 2018, costing the company $13 million.However even without Walmart, Halper sees Complete as a “new chapter” for thecompany and a “major driver of longer-term growth.” Management remainsoptimistic about Complete and has indicated that four of its top fivecustomers will be on the platform. “Complete, which is now live with 300,000users, is important for 2019 performance,” Halper writes.The risk-reward tradeoff looks attractive at these levels. Halper is modelinganother 36% upside from current share prices with his target of $5. Find outwhat other analysts think of this healthcare tech stock in TipRanks’ CSLTResearch Report.
* Market value: $4.7 billion
* TipRanks consensus price target: $5.35 (4% upside potential) * TipRanks consensus rating: Moderate BuySocial game developer Zynga (ZNGA, $5.12) is the name behind long-ago hitssuch as FarmVille and Words With Friends. Although the company faced a fewhard years following its split with Facebook (FB) and its inability to come upwith titles to rival its older blockbusters, it is now recovering thanks tosavvy acquisitions and a renewed focus on core “forever franchises.” CEO FrankGibeau – a former Electronic Arts (EA) exec – recently went so far as to saythat the company’s “turnaround is now complete.”The numbers are starting to show it. Zynga reported record mobile online gamerevenues and bookings, as well as record mobile advertising revenues andbookings, in its recently reported Q4.Wedbush analyst Michael Pachter recently wrote a report titled “PositiveMomentum to Continue in 2019, with New Releases the Icing on the Cake,” whichis a less-than-subtle indication of which way he’s leaning on ZNGA. Theanalyst, who has a $6.40 price target (25% upside), reiterated his “Buy”rating, writing, “Zynga is a company without peer, generating over 3x thebookings of its closest publicly traded competitor, Glu Mobile (GLUU).”The company expects bookings of $1.35 billion this year and “double digit”bookings growth in 2020 “implying bookings approaching $1.5 billion thatyear,” Pachter writes. Find out more from TipRanks in its ZNGA ResearchReport.
* Market value: $101.4 million * TipRanks consensus price target: $1.92 (79% upside potential) * TipRanks consensus rating: Strong Buy * Sequans Communications (SQNS, $1.07) is a 4G chipmaker and leading provider of single-mode LTE chipset solutions. In an encouraging sign, several five-star analysts have recently signaled their support for this often-overlooked, and super-cheap, stock.Top Needham analyst Rajvindra Gill believes growth can reaccelerate this year,principally driven by the company’s CAT 1 (voice-grade copper) cable business.The analyst writes, “We expect growth to reaccelerate throughout CY19principally driven by CAT 1 business (new projects with Gemalto), CAT 1modules vis-a-vis Sprint (S) network, new projects in Japan and a rebound inbroadband.”The company also is enjoying industry support: “Sequans continues to expanddesign wins and partnerships, with currently over 75 design wins …representing $200 million in revenue over the next 3-5 years,” writes Baird’sTristan Gerra.He writes that a new strategic investor has agreed to invest $8.4 million tohelp accelerate Sequans’ 5G product roadmap. With these developments in mind,the analyst sees 87% upside potential for SQNS. Check out other analysttargets for Sequans in TipRanks’ SQNS Research Report.
* Market value: $142.2 million * TipRanks consensus price target: $14.00 (68% upside potential) * TipRanks consensus rating: Moderate BuyInnovative semiconductor stock Everspin Technologies (MRAM, $8.32) has surgedby an incredible 50% year-to-date. Shares exploded on news that semiconductorgiant Intel (INTC) is endorsing the company’s MRAM (magnetic random accessmemory) technology.MRAM memory is a rival to the more traditional DRAM memory – another type ofrandom-access semiconductor memory. The notable advantage of MRAM is that itcan retain its data even when power is switched off.Intel will now integrate embedded MRAM into its 22nm FinFET CMOS technology.“We don’t know if Intel is using the Everspin’s technology but Intel’sdecision certainly validates the MRAM technology, which has been the crux ofthe investment theme,” Needham’s Gill wrote on Feb. 20.Gill believes major MCU suppliers “will eventually replace eFlash with MRAM asit has higher endurance and faster write cycles.”“We believe over the next several years, nearly 50% of the 32-bit MCU marketcould transition to MRAM as they transition to smaller process nodes,” hewrites. “All the major MCU suppliers are actively reviewing their currentflash technology.”Given this promising outlook, Gill is sticking with his “Buy” rating and $10price target (20% upside potential) for now, but he sees shares hitting evenhigher down the road. “Ultimately, we see value for the shares to $14 PT,based on an EV/sales multiple of 3.3x our 2019 revenue estimate.” Find outmore from TipRanks in its MRAM Research Report.
* Market value: $407.8 million
* TipRanks consensus price target: $8.00 (47% upside potential) * TipRanks consensus rating: Moderate Buy * The Meet Group (MEET, $5.46) is motivated by “the universal need for human connection.” MEET operates mobile social entertainment applications that enable users to interact with new people around them, generating revenue through ad sales and subscriptions.One of the stock’s big supporters is Roth Capital’s Darren Aftahi. He applaudsthe recent acquisition of German dating app Lovoo for $70 million, and writes:“Overall, in 2019, MEET continues to be a favorite name of ours and we remainbuyers on what we feel is a strong outlook for further incremental videomonetization on both Lovoo scale and the broader portfolio through newfeatures.”These new features include Battles – which allows for two livestreamers tocompete in front of an audience – and should be positive catalysts for videomonetization, Aftahi says. Moreover, MEET has announced another feature calledLevels, rolling out in the first half of this year, which “gamifies” theplatform by creating a ranking system and unlockable features for video users.The analyst thinks this is a sticky feature that will help drive engagement.Aftahi reiterated his “Buy” rating with a $8 price target (47% upsidepotential). Bear in mind, shares have more than doubled over the past year.You can check out more analysis in TipRanks’ MEET Research Report.
* Market value: $310.5 million
* TipRanks consensus price target: $14 (64% upside potential) * TipRanks consensus rating: Moderate Buy * Camtek (CAMT, $8.52) develops optical inspection systems for printed circuit boards. Helping the stock is a deal with Taiwan’s Chroma in which the equipment provider will pay $74.3 million for a 20.5% stake in the company.Following the deal announcement, Camtek CEO Rafi Amit said, “Today we signedagreements of strategic importance for Camtek, whereby Camtek is gaining animportant shareholder that will enable it to strengthen its presence in Asiain general, and in Taiwan in particular.”The market certainly approves; shares are up 27% year-to-date. And WallStreet’s recent price-target ramps are another positive indicator that thecompany is moving in the right direction.Five-star Northland Capital analyst Gus Richard has just boosted his pricetarget from $15 to $16 (88% upside potential). Richard writes that CAMTcontinues to significantly outperform other capital equipment stocks, thanksto higher-speed memory interfaces, market-share gains and new products andapplications.B. Riley FBR’s Craig Ellis has recently lifted his price target, too, from$10.50 to $12 (41% upside), citing strong earnings and execution. Discovermore about this lesser-known cheap stock in the TipRanks’ CAMT ResearchReport.
* Market value: $179.5 million * TipRanks consensus price target: $9.35 (56% upside potential) * TipRanks consensus rating: Strong Buy * Akoustis Technologies (AKTS, $6.00) specializes in acoustic wave technology for mobile and wireless devices. Share prices have exploded by roughly 275% over the past three years, but the Street still sees significant upside potential looking forward.Five-star Oppenheimer analyst Rick Schafer has just reiterated his“Outperform” rating (equivalent of “Buy”) with a $10 price target for 67%upside potential. Note that Schafer is in the top 100 of all tracked analystsfor his stock picking abilities.“Early engagement and order traction from OEMs in diverse end markets,including LTE infrastructure, defense and CBRS, are indications of Akoustis’ssteady progression toward revenue ramp,” Schafer writes.Following fiscal second-quarter results, Schafer told investors, “We seerevenues accelerating as customer production orders transition to revenues.”He notes that management continues to execute on key milestones, includingexpanding Wi-Fi and network infrastructure share.Keep your eye out for groundbreaking developments, too. “The company is alsosampling industry’s first 5.6GHz WiFi filter, paving the way for a tandem BAWsolution and opening the door to a full tri-band solution,” Schafer writes.Find out more from TipRanks in its AKTS Research Report.Harriet Lefton is head of content at TipRanks, a comprehensive investing toolthat tracks more than 5,000 Wall Street analysts as well as hedge funds andinsiders. You can find more of their stock insights here.
7 Tech Stocks to Buy With Breakout Potential for the Second Half of the Year
Tech stocks have been volatile trades so far in 2021, and we’re liable to seemore wild swings in the near future. As the global economy reopens, investorsincreasingly find themselves in an ambivalent position where they need tochoose between cyclical “old economy” stocks and high-growth tech stocks.Many tech names have seen occasional pullbacks over the past few months. Yetthe NASDAQ 100 index, up over 14% so far in the year, has also hit a new all-time high in recent days. And this continuous growth is precisely why the techsector presents compelling buying opportunities. Today we’ll discuss some ofthe best tech stocks to buy in July and hold for the long run.As innovation always plays a crucial role in promoting growth, tech names willcontinue to be the primary growth driver behind the stock market.InvestorPlace – Stock Market News, Stock Advice & Trading TipsHere are 7 tech stocks to buy with breakout potential for the second half ofthe year: * Coupa Software (NASDAQ:COUP) * Global X Millennials Thematic ETF (NASDAQ:MILN) * KAR Auction Services (NYSE:KAR) * NCR Corporation (NYSE:NCR) * Ping Identity Holding (NYSE:PING) * Pinterest (NYSE:PINS) * ProShares Online Retail (NYSE:ONLN)When it comes to technology stocks, it’s vital to understand that numbersaren’t everything. Tech shares promise powerful upside potential, as they areunique in their ability to grow rapidly and transform a new idea into a goldengoose. But lucrative returns do not mean that the market is risk-free. Readersneed to be cautious before investing in tech stocks, as higher growthpotential comes with higher risk. Tech stocks tend to plummet quickly if theydeliver results below market expectations.
Tech Stocks to Buy with Breakout Potential: Coupa Software (COUP)
coupa logoSource: Michael Vi / Shutterstock.com52-week range: $215.00 — $377.04San Mateo, California-based Coupa Software is a cloud-based business financemanagement platform that provides companies with more control and visibilityover how they spend money. Coupa connects buyers with suppliers and helpsbuyers save money by improving procurement, expense management and payments.Story continuesThe company released 2022 first-quarter results in early June. Total revenuegrew 40% year-over-year (YOY) to $167 million. Adjusted net income was $5million, compared to $14.5 million for the same period last year. Adjusted EPScame in at 7 cents, compared to 20 cents for the prior-year quarter. Adjustedfree cash flow stood at $30 million.“During the first quarter, we delivered record revenue, generated meaningfulfree cash flows, and added dozens of new customers to the Coupa Community,”remarked CEO Rob Bernshteyn.Coupa is a growth stock that has managed to increase full-year revenue by morethan 38% for the past five years. The company collects spend data from itsplatform to provide artificial intelligence (AI)-powered suggestions. Thus,the quality of prescribed insights is likely to improve as more customers jointhe platform. The company boasts a solid endorsement from International DataCorp, which nominated Coupa as a leader in six different markets, from spendanalysis and procurement to supplier relationship management and sourcing.COUP stock is currently hovering around $251. Year-to-date (YTD), the stock isdown 26%. The stock currently trades more than 30% lower than its 52-week highin mid-February. The current P/S ratio stands at 29.98. Interested investorscould find value at these levels.
NCR Corporation (NCR)
The front view of an NCR Corporation (NCR) office in Prague.Source: BalkansCat / Shutterstock.com52-week range: $16.64 — $50.00Atlanta, Georgia-based NCR designs and services automated systems. The companyis the largest global vendor of ATMs. It also sells point-of-sale (PoS)terminals, self-service check-out systems for retail stores and self-check-inkiosks for airlines and hotels.The company reported first-quarter results in late April. Revenue of $1.54billion meant an increase of 3% YOY. Net income went up by 30% to $30 million.Non-GAAP diluted EPS for the quarter stood at 51 cents, up 65% YOY. Free cashflow was $98 million, compared to an outflow of $20 million in the prior-yearperiod.CEO Michael Hayford remarked:“Our first-quarter results represent a great start to the year with increasedmomentum in our shift to NCR-as-a-Service. Our performance included strongrecurring revenue growth, margin expansion, and cash flow generation.”NCR’s retail-oriented technology for retail and hospitality businesses hasbecome a key long-term growth driver over the past few years. Analysts concurthat the company’s focus on software and services should play a crucial rolein future growth.NCR stock trades around $44.50, up 19% YTD and 145% in the past 12 months. Theforward P/E ratio stands at 17.48, while the stock trades at 0.93x its currentsales. Growth-seeking tech investors can buy NCR stock at the current priceand hold them for the long term.