Recognizing intelligent and forward-thinking opportunities might be challenging in the current unstable environment. Despite this uncertainty, three under-$10 tech stocks have emerged as possible gold mines. These businesses are involved in various technology-related areas, which indicates a high possibility of significant returns by 2026.
The first one sticks out due to its remarkable revenue development trend. This expansion establishes the company as a leader in the field and highlights the growing demand for its video optimization technology. The latter has positioned itself strategically by forming solid alliances and cultivating client connections. Securing multimillion-dollar deals and concentrating on Wi-Fi 7 innovation, the firm expects to develop significantly in response to changing industry connection demands.
Finally, the third one has seen a noticeable increase in sales. Its deliberate move to a software-as-a-service (SaaS) model is responsible for this development since it has increased service revenue and improved stability even in difficult market situations. Overall, these businesses exhibit both resilience and flexibility in negotiating market conditions. Their strategic ideas and creative methods open the door to long-term growth and market leadership.
Beamr Imaging (BMR)
The revenue growth trajectory of Beamr Imaging (NASDAQ:BMR) is a fundamental strength that highlights the company’s potential for quick expansion. Although revenues rose just $0.05 million, or 2% compared to the prior year, it still indicates Beamr can hit market demand for its video optimization technologies and solutions.
A partnership with Nvidia (NASDAQ:NVDA) announced in February would see the two tech stocks work together to accelerate the adoption of AOMedia Video 1 (AV1). Beamr stock soared on the news, and though it has since returned to earth, shares remain elevated. BMR stock is up 316% year to date.
Moreover, Beamr has effective cost-control procedures in place. It managed to keep its cost of sales under control, keeping it comparatively steady from the prior year despite the meager rise in revenue. Beamr also significantly saved selling and marketing costs (down 60%) and research and development costs (down 12%).
Finally, a vital milestone was reached in February 2024 with the release of the Beamr Cloud SaaS solution, which offers cutting-edge features, including the modernization of video standards and the acceleration of adopting new standards. For instance, Beamr’s perceptual optimization technology (CABR), backed by 53 patents, makes real-time video streaming optimization possible.
Airgain (AIRG)
Value-added resellers (VARs), system integrators, distributors and major clients are among the global networks with which Airgain (NASDAQ:AIRG) has built solid ties and strategic alliances. Airgain can quickly bring its solutions to market through these alliances, address important connectivity problems and sell its products more effectively. Moreover, to demonstrate significant client validation and potential future income, the business, for example, obtained multimillion-dollar asset tracking possibilities and design wins with Tier 1 MSOs (Multiple System Operators) for Wi-Fi 7 products.
Further, Airgain creates sharp wireless solutions, focusing on advancement and flexibility. The firm positions itself to benefit from the switch from Wi-Fi 6E to Wi-Fi 7 by investing in next-generation Wi-Fi 7 design and testing capabilities. In addition, Airgain concentrates on cutting-edge developments like asset tracking and 5G connections to hit market demand.
Looking forward, the company expects its consumer, automotive and enterprise sectors to rebound due to the gradually growing demand for embedded modems, the expansion of asset tracking applications and the adoption of new wireless technologies like 5G and Wi-Fi 7. Lastly, thanks to its strategic efforts and sales indications, Airgain is positioned to accelerate its growth in the second half of 2024.
PowerFleet (PWFL)
With a focus on SaaS-based income, PowerFleet (NASDAQ:PWFL) launched a revenue transformation plan to enhance the quality of revenue streams. Compared to the first half of 2023, this strategy increased overall revenue by 6% in the back half of the year.
Furthermore, Q4 2023 saw the company’s highest sales performance in the previous six quarters, totaling $34.5 million, 9% more in constant currency than the previous year. This steady growth trajectory highlights the robustness and efficacy of PowerFleet’s revenue strategy, even in challenging market conditions.
Indeed, a core component of PowerFleet’s expansion strategy has been the move to a SaaS-focused business model. The notable rise in service income increased by 16% year-over-year (constant currency) in Q4 of 2023 and 14% for all of 2023. This growth is the proof of this beneficial shift. Similarly, in 2023, service income increased to 63% of overall revenue from 58% in 2022.
Overall, this change shows that PowerFleet’s attempts to increase recurring income streams have been successful. These often have better margins and provide greater stability.
On the date of publication, Yiannis Zourmpanos did not hold (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.
