Investing in under-the-radar tech stocks is a smart way for investors to grow their wealth. However, deciding which company to invest in can be tricky, as the market is full of up-and-coming companies vying for attention. Fortunately, it’s easy to stay ahead of the curve by investing in “under-the-radar” tech stocks. That is, those that don’t get as much press coverage, yet offer great potential value over the long-term.
You can uncover hidden gems by understanding specific organizations’ technical details and trends. Keep on top of tech innovation and take advantage of every opportunity to explore off-the-beaten-path stocks. After all, you never know where a breakthrough will come from next!
The current bear market isn’t something to be feared, but rather embraced. For value investors, the opportunity for significant returns is now greater than ever. Lower stock prices come with more enticing valuations. It may not seem like it when watching the news every night. However, these current conditions create an ideal environment for producing outsized returns over time.
All of the names on this list hold double-digit upside potential per TipRanks, meaning there is much to potentially gain from buying these stocks at these beaten-down levels.
Nextdoor Holdings (KIND)
Nextdoor Holdings (NYSE:KIND) has recently seen a huge drop in its share price, now nearly 80% off its peak. Despite this stock’s recent downslide, Nextdoor remains an attractive company in the tech sector. The company possesses a unique platform that brings together neighbors, businesses, and public services. By fostering these connections in local communities, Nextdoor is setting itself up as an influential force.
Nextdoor has exploded in popularity in recent years, quietly growing to 33 million weekly active users across 11 countries. Notably, nearly one in three U.S. households uses Nextdoor’s services. CEO Sarah Friar is no stranger to success, with previous experience as CFO of Block (NYSE:SQ), which demonstrated consistent growth in their user base as well. Nextdoor offers a one-of-a-kind advertising opportunity for small and mid-sized local businesses (SMBs) to target customers within their area directly. That kind of expertise gives it a unique niche in the market.
Nextdoor’s growth has been nothing short of remarkable. Suffice it to say that few other companies in the social media sector have seen such impressive strides. During the latest quarter, revenue increased by 2% compared to last year, totaling $54.0 million. Meanwhile, the company’s weekly active user count increased 17% year-over-year to 38.3 million. However, its Adjusted EBITDA loss for this period was $18.4 million, significantly higher than the year-ago figure of $7.7 million.
According to data gathered from TipRanks, the stock has a price target of $3.18, which translates to an upside of 52.15%.
Owlet (NYSE:OWLT) stock is suffering from a steep discount from its 52-week high. Despite severe losses across the market, this company’s digital parenting platform has underperformed.
Opened for business in 2013, Owlet makes internet-enabled products for parents to monitor babies’ health and sleep metrics. However, the FDA ruled that the company’s Smart Sock product was marketed as a medical device requiring regulatory approval – something it doesn’t possess – leading to further stock losses.
Owlet has demonstrated an impressive commitment to helping parents handle childrens’ emotional and physical load. Their latest product offering, the Dream Sock, is a much-improved form of the original Smart Sock. It provides more accurate and reliable insights, giving parents more control over their babies’ safety and well-being. However, Owlet’s ambitions don’t end there. It aims to create a whole suite of sleepwear accessories and innovative gadgets, such as a “smart crib,” to make parenting life easier.
With a growing number of technologically savvy millennials and Gen Zers becoming parents, monitoring the health of their babies and making sure they’re safe is more convenient than ever with devices like Owlet’s internet-enabled products. For example, Smart Sock 2 can give parents live tracking of their baby’s oxygen levels and heart rate. With features such as real-time notifications, comprehensive sleep histories, and easy-to-understand data in its companion app, it’s no wonder these products are so attractive to parents who are used to always having data at their fingertips. The products have amassed excellent ratings from Amazon (NASDAQ:AMZN). Although it is risky, when analyzing under-the-radar tech stocks, Owlet is one to look out for.
TipRanks data shows that the stock has an estimated target price of $2.00, which is approximately 233.33% higher than the current market rate.
Coursera (NYSE:COUR) provides a platform where students can certify and earn degrees through their online courses from 275 universities worldwide. This company had a remarkable start when it went public last year. Its shares initially skyrocketed to an astonishing $58 per share high. However, the stock has since plummeted, trading around just $13 per share today.
Coursera’s 2021 sales-valuation ratio of 18-times was unsustainable, making the stock particularly vulnerable to a rising interest rate environment. Coupled with its decade-long history of unprofitability and decelerating post-pandemic growth, it ultimately made an easy mark for bears and short-sellers.
However, sentiment is improving, particularly thanks to its third-quarter report. The latest financial report from the company was good news for investors. It shows a marked increase in total revenue and gross profits from a year ago. The 24% jump in revenue to $136.4 million was promising, as was the 29% rise in both GAAP and non-GAAP gross profits to reach $87.6 million and $88.3 million, respectively.
This demonstrates that the company has been able to generate more revenue over the reported period. Accordingly, I think these results will surely encourage investors, and we look forward to seeing more success in future quarters. That is why it is one of the best under-the-radar tech stocks to buy right now.
TipRanks data has indicated a 43.08% upside potential in this stock, with the price target set at $18.00 per share.
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On the publication date, Faizan Farooque 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.