3 Disruptive Tech Stocks to Go All In on Now

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  • Despite the elevated risk and volatility on Wall Street, disruptive tech stocks provide investors with the potential to generate lucrative returns.
  • Proto Labs (PRLB): Increasing order volumes for 3D Printing and CNC Machining services are driving revenue growth.
  • PTC (PTC): Revenue grew 9% YOY to $505 million during the second quarter.
  • Stryker (SYK): The company is capitalizing on strong demand for its robotic surgery platform.
disruptive tech stocks - 3 Disruptive Tech Stocks to Go All In on Now

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The best disruptive tech stocks are those that are shaping the future. Disruptive companies boast unique competitive advantages as well as sticky consumer and global footprints. While investing in these stocks suggests elevated risk and volatility, it also provides investors with the potential to generate stellar returns.

It has been a rough ride for tech stocks so far in 2022. Rising interest rates and disappointing earnings results have weighed on the markets, bringing their lofty valuations down to reasonable levels. Both the tech-heavy Nasdaq-100 Index and the Dow Jones U.S. Technology Index have declined over 20% year-to-date (YTD), placing tech stocks around bear-market territory.

Seasoned investors are debating whether the second quarter is the right time to grab disruptive tech stocks at reasonable prices. Cheaper prices make these attractive. However, investing in these stocks, especially in a bear market, requires patience and a longer-term view of their investments.

With that information, here are the three best disruptive tech stocks to buy for lucrative gains in 2022.

Ticker Company Current Price
PRLB Proto Labs $48.75
PTC PTC $118.56
SYK Stryker $229.02

Proto Labs (PRLB)

Proto Labs (NYSE:PRLB) provides digital manufacturing services for custom prototypes and on-demand production parts. In early 2021, Proto Labs acquired the Netherlands-based Hubs in a deal worth $280 million.

On May 6, Proto Labs released Q1 results. Revenue increased 6.9% year-over-year (YOY) to $124.2 million. Adjusted net income came in at 38 cents per diluted share, down from 40 cents a year ago. Cash and equivalents ended the period at $57.2 million.

Topline growth was primarily driven by 3D Printing and CNC Machining services, which saw rising order volumes from key customers. CNC Machining brought in $46.1 million, up 26% YOY. Despite increasing logistical and raw material costs, gross margin was an impressive 45.7% of revenue. Management anticipates generating revenue of $123 million to $131 million in the second quarter.

So far in 2022, PRLB stock has declined 10%. Shares are trading at 27.5 times forward earnings and 2.5 times sales. The 12-month median price forecast for Proto Labs stock stands at $53.

PTC (PTC)

PTC (NASDAQ:PTC) is a leading software name wishing to transform manufacturing through web-based technologies. It primarily offers high-end computer-assisted design (CAD) and product lifecycle management (PLM) software, as well as Internet of Things (IoT) and augmented reality (AR) industrial solutions.

The industrial software company reported Q2 metrics on April 27. Revenue grew 9% YOY to $505 million. Adjusted earnings-per-share came in at $1.39, compared to $1.08 in the prior-year period. Cash and equivalents ended the period at $307 million.

Management is shifting the core CAD and PLM products into cloud-based software-as-a-service (SaaS) offerings called “velocity.” PTC projects IoT and AR segments to become key growth drivers, projecting more than 20% growth through 2022. The company forecasts full-year revenue of between $1.90 billion – $1.97 billion.

PTC stock has lost 3.5% YTD. Shares are trading at 24.8 times forward earnings and 6.8 times sales. The 12-month median price forecast for PTC stock is at $153.

Stryker (SYK)

Stryker (NYSE:SYK) is a leading medical device company primarily focused on orthopedics, spine and neurotechnology. Its offerings include surgical and robotic surgery equipment, endoscopy systems and spinal devices.

The medical device maker announced Q1 numbers on April 28. Revenue grew 8.1% YOY to $4.3 billion. Adjusted net earnings-per-diluted-share increased 2.1% YOY to $1.97. Cash and equivalents ended the period at $1.46 billion.

Stryker benefits from solid demand for its robotic surgery platform, Mako. In 2021, the company’s installed base grew by 27%, approaching 1500 Mako robots. Moreover, Mako robots generate significant recurring revenue from hospitals due to the high switching costs.

Management anticipates full-year sales to increase towards the higher end of its guidance range of 6% to 8%.

So far in 2022, SYK stock has dropped 15%. It currently generates a 1.2% dividend yield. Shares are trading at 23.7 times forward earnings and 5.1 times sales. The 12-month median price forecast for Stryker stock is at $285.

On the date of publication, Tezcan Gecgil did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/06/3-disruptive-tech-stocks-to-go-all-in-on-now/.

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