Tech stocks are undoubtedly at risk of overheating after a great run in 2013. But finding cheap stocks to buy in the technology sector isn’t impossible … if you know where to look.
Sure, social media is full of froth, with LinkedIn (LNKD) sporting a forward P/E of almost 100 and recent IPO Twitter (TWTR) racing up over the holidays. Finding cheap stocks to buy in this corner of the tech sector seems nigh impossible.
Elsewhere among tech stocks, you’ve got once-battered players like chipmaker Micron (MU) that have soared by triple digits in short order on turnaround hopes. No luck there, either.
But there are thousands of tech stocks of numerous flavors, and not all picks have run up to extreme valuations just yet.
If you are looking for cheap tech stocks to buy, you have to look at unsung companies that have been overlooked by the rest of Wall Street. And it also helps if you have the patience for dividends and long-term growth instead of the desire to snag a short-term momentum trade in a fashionable name.
Consider these five cheap tech stocks as bargain buys for the New Year: