Technology companies are great picks when it comes to investing. Technology moves at a rapid pace and today’s startup can quickly be worth billions. Established companies can reinvent themselves. There’s a reason why so many of the world’s most valuable companies are tech stocks. Unfortunately, that success means they can be expensive. A single share in Amazon (NASDAQ:AMZN) will set you back over $3,100 at this point.
However, there are still tech companies with share prices that makes them relative bargains — you just need to look a little harder. Here are seven tech stocks to buy now if you’re looking for potential without paying a huge premium.
- Logitech (NASDAQ:LOGI)
- Western Digital (NASDAQ:WDC)
- Nokia (NYSE:NOK)
- Ericsson (NASDAQ:ERIC)
- Intel (NASDAQ:INTC)
- Dropbox (NASDAQ:DBX)
- Digi International (NASDAQ:DGII)
Some of these companies have been flying under the radar, some have fallen on tough times and some are relatively new to the scene. What they share is a bargain price, and big potential.
Tech Stocks: Logitech (LOGI)
Logitech is one of the more expensive stocks on this list, but currently trading at around $75, it’s still in double-digit territory. That’s relatively affordable. This is a tech company that’s been around forever, and one with a recognizable name. Chances are you’ve used a Logitech keyboard, mouse or webcam. In fact, Logitech saw a big boost in its business from the novel coronavirus as working from home and remote learning took off.
With its gaming peripherals (including ownership of the premium ASTRO Gaming brand), Logitech is also well-positioned to gain from the boom in gaming, as well as the launch of new game consoles this fall. In addition, Logitech has invested in buying some of the top-rated consumer audio brands. Logitech properties Ultimate Ears and Jaybird are popular choices in the Bluetooth speaker and earbud markets.
LOGI stock has posted 450% growth over the past five years, and it’s well-positioned to continue that trend.
Western Digital (WDC)
Western Digital is another name you may recognize from your computer setup. The company is a leading manufacturer of hard drives, and SSDs.
Currently trading in the $37 range, WDC stock is down 44% from the start of the year. That alone makes it a bargain. Western Digital’s business also tends to be cyclical in nature. Over the past several years, WDC stock was battered by a glut of flash storage and a declining PC market.
With that glut drying up, PC sales picking up and data center operators planning to increase their spending on storage, Western Digital shares are positioned for long-term recovery.
The 31 analysts polled by CNN Business have WDC rated as a consensus buy. Their 12-month median price forecast of $51 offers an enticing 38% upside. The combination of a low price and strong growth prospects make Western Digital one of the best tech stocks to buy now.
Tech Stocks: Nokia (NOK)
Nokia is a tech stock worth considering if you’re looking for a 5G play. The company is one of the biggest global suppliers of 5G infrastructure — at this point it has 85 commercial 5G deals along with 33 live 5G networks.
Nokia also gets a slice of every 5G smartphone sold, thanks to its 5G patent portfolio.
Currently trading in the $5 range, NOK stock is cheap. It has also managed to bounce back nicely from the March market meltdown and has posted more than 30% growth so far in 2020.
If you believe the Nokia name might once again help to move smartphones and classic feature phones, the company has also licensed its name. It gets $11 to $23 per unit for modern takes on former Nokia classics like the iconic 2720 flip phone.
Sweden’s Ericsson is another affordable play on 5G. Shares in the company trade for under $12, but Ericsson is currently on top of the list of global 5G network suppliers. Its 93 commercial deals edges out Nokia and China’s Huawei. And — like Nokia — Ericsson also collects royalties on 5G smartphones.
In its latest quarter, Ericsson said the pandemic has had limited impact on its business so far. There’s always a risk that the pandemic or an associated recession will delay 5G rollouts and adoption. However, these factors would only result in a delay, not a retreat on the technology.
Either way, those who invest in ERIC stock will still see the long-term benefit of 5G.
Tech Stocks: Intel (INTC)
Intel has had a rough ride over the past few years. The PC-era giant has seen its market share in desktop PC and now laptop CPUs battered by a revitalized Advanced Micro Devices (NASDAQ:AMD). It gave up on its 5G modem business last year, selling that to Apple. In 2018, the company fired its CEO. In July, with its new 7-nanometer chips delayed once again, the company got rid of its chief engineering officer. There was even talk of outsourcing chip production!
The bad news has hit INTC stock especially hard in 2020. Now trading below $50, it is down 29% from its January highs. That punishment makes Intel shares a bargain.
Despite several years of fumbles, Intel stock has still continued to climb in value. Taking the most recent problems out of the mix, up until January INTC had posted five-year gains of 136%. Intel has been hit hard by AMD and self-inflicted wounds, but still holds a commanding lead in computer processors. It’s not going anywhere.
The 7-nanometer chips are delayed, but now expected in 2021 — and that will bring new pressure against AMD. At its current price, INTC is a bargain that promises long-term growth.
When it comes to stocks that have been boosted by the trends of working from home and remote learning, the big star is Zoom Video Communications (NASDAQ:ZM). It’s up a whopping 245% so far in 2020, as video conferencing replaces in-person meetings. However, at over $237, Zoom stock is far from a bargain at this stage.
You can still get in on the remote technology action with another tech stock that’s a lot more affordable. The namesake product of San Francisco-based Dropbox is a secure file-sharing service. The company claims that subscription-based Dropbox is used by over 500 million users, and its enterprise customers include 56% of Fortune 500 companies.
DBX stock is currently trading under $20, and InvestorPlace Markets Analyst Luke Lango just made the case that it is “insanely undervalued.”
Tech Stocks: Digi International (DGII)
The final entry on this list is Digi International. This is probably the least recognizable name on the list, despite the company being in business since the mid-1980s.
Digi International describes it self as a “wireless communication pioneer.” That’s developed into a focus on the internet of things, including sensor-based remote monitoring solutions. With the pandemic forcing many employees to work from home, Digi’s solutions are seeing even greater uptake.
The company reported record third-quarter earnings last week, noting:
“In a period in which the global economy contracted at unprecedented levels, Digi’s business model demonstrated its resiliency. Digi’s core value proposition enabling secure, automated, remote work has never been more relevant as our customers adapt during this pandemic era.”
DGII stock currently trades for around $13.60, down 23% from January levels. That’s bargain territory for this tech stock.
Brad Moon has been writing for InvestorPlace.com since 2012. He also writes about stocks for Kiplinger and has been a senior contributor focusing on consumer technology for Forbes since 2015. As of this writing, Brad Moon did not hold a position in any of the aforementioned securities.