While technology offers some of the most compelling investment opportunities, there’s no need to pay full price if you don’t have to, thus driving the case for tech stock bargains. While you can always opt for the established entities, the securities on this list focus on the best deals available. To be sure, a clear distinction exists between merely cheap and a genuine discount. For this list of tech stock bargains, I filtered out entities based on their fiscal resilience; specifically, no enterprise on this list features an Altman Z-Score lower than 4. That way, investors can be reasonably assured of putting their money into relatively stable businesses.
As well, all of these companies enjoy at least a consensus analyst rating of moderate buy. And none of them trade over the counter, providing greater reassurances. So, with that out of the way, let’s dive into the tech stock bargains to snatch up.
|AOSL||Alpha and Omega Semiconductor||$36.06|
|SMCI||Super Micro Computer||$83.21|
|DQ||Daqo New Energy||$43.09|
Wireless Telecom (WTT)
Based in New Jersey, Wireless Telecom (NYSEAMERICAN:WTT) is a global designer and manufacturer of advanced radio frequency, and microwave components, modules, systems, and instruments. Primarily, it serves the broader telecommunications industry. However, Wireless also plays an important role in the military and aerospace sectors. Thanks to robust performances since late September last year, WTT gained almost 6% in the trailing year.
Currently, the market prices WTT at a trailing multiple of 7.31. In contrast, the sector median value stands at 18.16 times. As a discount to earnings, Wireless ranks better than 85% of the competition. In addition, the company benefits from a strong balance sheet. For example, its cash-to-debt ratio pings at 14 times, ranked above nearly 81% of industry players.
To be fair, Gurufocus.com warns that WTT represents a possible value trap. However, the one analyst covering WTT remains undeterred, rating it a buy. As well, the expert’s price target hits $2.25, implying over 18% upside potential. Thus, it’s an intriguing take on tech stock bargains.
Based in Israel, Cellebrite (NASDAQ:CLBT) represents the “…global leader in partnering with public and private organizations to transform how they manage Digital Intelligence in investigations to protect and save lives, accelerate justice, and ensure data privacy,” per its website. In the trailing year, CLBT dipped over 8%. However, in the year so far, shares gained almost 23%.
Presently, the market prices CLBT at a trailing multiple of 6.76. For comparison, the underlying sector median value stands at nearly 27 times. As a discount to earnings, Cellebrite ranks better than over 94% of its peers. On the balance sheet, the company offers a stable profile. For instance, it has zero debt, affording the enterprise much flexibility. Moreover, its Altman Z-Score pings at 5.45, reflecting low bankruptcy risk.
At the moment, Wall Street analysts peg Cellebrite as a consensus moderate buy. Further, their average price target stands at $7.25, implying nearly 31% upside potential. As well, sentiment among hedge funds rates as positive, making CLBT one of the tech stock bargains.
Alpha and Omega Semiconductor (AOSL)
Although not often discussed, Alpha and Omega Semiconductor (NASDAQ:AOSL) represents one of the more enticing tech stock bargains. It’s a designer, developer, and global supplier of a broad range of power semiconductors. Because the company touches so many relevant economic cogs, AOSL deserves consideration just as a long-term investment.
However, when focused specifically on tech stock bargains, Alpha and Omega really shines bright. Currently, the market prices AOSL at a trailing multiple of 2.32. In contrast, the sector median value stands at 18.48 times. As a discount to earnings, AOSL ranks higher than over 99% of its peers. In addition, AOSL trades hands at 1.37 times sales and 1.18 times book value. Both rate much lower than their respective median values.
Now, only one analyst covers AOSL at the moment with a buy rating. However, this expert – David Williams of Benchmark Co. – sees an upside potential of over 34%. Just as well, hedge fund sentiment for shares rates as very positive. Thus, it’s an overlooked but viable name among tech stock bargains.
Before we dive into the blockchain mining enterprise Canaan (NASDAQ:CAN), you should be aware that CAN stock is incredibly volatile. In fact, words do not exist to describe its wildness and unpredictability. Specifically, Canaan’s 60-month beta pings at 3.25. Considering that a beta of 1 indicates the volatility found in the benchmark equities index, a rating of over 3 just about tells you everything you need to know about Canaan.
However, when narrowing the discussion about tech stock bargains, Canaan ranks among the best. In particular, the market prices CAN at a trailing multiple of 1.76. For comparison, the sector median value stands at 18.16 times. As a discount to earnings, Canaan ranks superior to nearly 99% of its peers.
Conspicuously, Canaan features excellent strengths in the balance sheet, a rarity for a cryptocurrency-mining enterprise. Right now, its cash-to-debt ratio stands at a hearty 61.44 times. At the moment, only two analysts cover Canaan. However, they peg shares as a consensus moderate buy. In addition, their price target stands at $5, implying nearly 39% upside potential.
Super Micro Computer (SMCI)
Based in San Jose, California, Super Micro Computer (NASDAQ:SMCI) is a provider of high-performance and high-efficiency servers, server management software, and storage systems for various markets, including enterprise data centers, cloud computing, artificial intelligence, 5G, and edge computing. In the trailing year, SMCI gained a staggering 121%.
Given this incredible performance, a debate about its valuation erupted recently. Per Gurufocus.com’s proprietary calculations for fair market value (FMV), SMCI rates as significantly overvalued. Objectively, though, the market prices CAN at a trailing multiple of 8.02. In contrast, the sector median pings at 18.16. This ranks better than nearly 84% of the competition.
At the moment, Wall Street analysts peg SMCI as a consensus moderate buy. Moreover, their average price target stands at $122, implying an upside potential of nearly 45%. Therefore, SMCI ranks among the tech stock bargains.
Daqo New Energy (DQ)
Based in China, Daqo New Energy (NYSE:DQ) engages in the manufacture of monocrystalline silicon and polysilicon, primarily for use in solar photovoltaic systems. With so much emphasis placed on green initiatives like solar energy, DQ offers an intriguing idea among tech stock bargains. In the trailing year, DQ gained a very respectable 15%, especially considering the circumstances.
Here, we also have another dispute about valuation implications. According to Gurufocus.com, DQ rates as a possible value trap based on its FMV calculations. Objectively, the market prices DQ at a trailing multiple of 2.05. For comparison, the sector median value is 18.48. As a discount to earnings, Daqo ranks better than over 99% of its peers.
Notably, Daqo features zero debt, which should help its cause as one of the tech stock bargains. In addition, its operational stats (revenue and profitability) are simply outstanding. Currently, DQ features a consensus moderate buy rating. Moreover, the experts’ average price target of $65.50 implies an upside potential of nearly 51%.
Rounding out this list of tech stock bargains is Cepton (NASDAQ:CPTN). Headquartered in San Jose, California, Cepton provides state-of-the-art, intelligent, lidar-based solutions for a range of markets such as automotive (ADAS/AV), smart cities, smart spaces, and smart industrial applications.
While Cepton appears scientifically relevant – and I’m sure it’s exactly that – CPTN represents a dangerously risky trade. For one thing, it’s only a bit below parity on a year-to-date basis, making it rather disappointing. What’s more, since its public market debut, CPTN dropped a stunning 86% in equity value.
If you can handle the inherent volatility and unpredictability, CPTN trades hands at a trailing multiple of 5.95. In contrast, the sector median stands at nearly 27 times. As a discount to earnings, Cepton rates better than over 95% of its rivals.
Despite the obvious risks of engaging CPTN, Wall Street analysts don’t seem too worried. Currently, they peg it as a consensus moderate buy. Also, their price target of $3.33 implies an upside potential of over 154%.
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On the date of publication, Josh Enomoto 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.