3 Tech Stock Disruptors to Buy Before They Take Off


  • Financial strength and prudent management strategies are driving growth across these market-leading stocks.
  • Immersion (IMMR): It’s effectively managing increased operating expenses to support top-line growth.
  • Inseego (INSG): INSG has solidified and strengthened financials with increased cash reserves and prudent debt management.
  • M-Tron (MPTI): MPTI is delivering substantial net income growth, indicating bottom-line strength.
Tech Stocks to Buy - 3 Tech Stock Disruptors to Buy Before They Take Off

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These three exceptional tech stocks to buy offer investors noteworthy opportunities. The first is notable for its skillful handling of rising operational costs and its deliberate matching of expenditures with rising income. Even with the increase in costs, the company’s cost control guarantees a favorable atmosphere for long-term top-line growth.

The second one stands out due to its improved financial standing, seen in higher cash reserves and careful debt management. The business’s proactive strategy, which includes terminating its asset-based lending (ABL) facility, highlights its dedication to sound financial management and lays the groundwork for further expansion plans. 

The third exhibits strong bottom-line growth, propelled by notable rises in net income. This growing trend highlights the company’s appeal to investors looking for promising prospects in the market and indicates the company’s successful execution of strategic goals. With that, here are three of the top tech stocks to buy now.

Immersion (IMMR)

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Immersion (NASDAQ:IMMR) has secured license agreements with Meta (NASDAQ:META) and Samsung (OTCMKTS:SSNLF), extending the availability of its crucial patents. These patents are integral to these industry giants’ hardware, software, virtual reality, computing, and gaming products, showcasing Immersion’s haptics lead.

In the first quarter of 2024, Immersion’s GAAP operating expenditures (OpEx) surged from $3.8 million to $27.2 million, while non-GAAP OpEx rose from $2.6 million to $26.1 million. Despite this significant OpEx increase, Immersion maintained a positive bottom line, demonstrating its effective cost-control measures. 

Additionally, as of Q1 2024, total cash on hand was $179.1 million. This is up $18.7 million from $160.4 million in Q4 2023. Immersion is in a solid financial position, as reflected in its solidified balance sheet. Hence, this liquidity leaves room for future expansion plans.

Overall, expanded liquidity improves its capacity to fund research initiatives, expansion prospects, and strategic investments.

Inseego (INSG)

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Inseego (NASDAQ:INSG) strengthened its financial position in Q1 2024 with increased cash reserves and a prudent debt profile. The company’s cash balance grew by $4.8 million, reaching $12.3 million by March 31.

This improved liquidity enhances Inseego’s ability to finance operations and pursue growth. Inseego also demonstrated proactive debt management by voluntarily repaying and terminating its ABL facility in April 2024, reducing the burden of interest expenses. Thus, this move allows the company to explore alternative capital structures, such as secured debt.

Additionally, Inseego delivered optimistic guidance for Q2 2024, signaling confidence in the company’s continued growth trajectory. The company’s consolidated top-line may hit $52 million to $56 million for Q2 2024, reflecting a considerable increase from Q1 2024. Hence, this forecast suggests sustained momentum in top-line growth and customer demand across product lines.

Finally, Inseego expects adjusted EBITDA to range from $6.5 million to $7.5 million for Q2 2024, indicating continued bottom-line uplift and margin expansion compared to Q1 2024. Therefore, this guidance underscores the company’s edge in its operational performance and outlook.

M-Tron (MPTI)

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Another one of the top tech stocks to buy is M-Tron (NYSEAMERICAN:MPTI)

Most recently, we learned its diluted EPS was boosted by $0.33 to $0.53 for Q1 2024, a solid boost compared to $0.20 for Q1 2023.

The substantial increase in net income per diluted share signifies solid bottom-line growth. This growth could be attributed to various factors, including increased revenue, improved gross margins, and effective cost-management initiatives. Thus, M-Tron’s fundamental ability to translate top-line growth into higher profitability enhances its attractiveness to the street and supports growth initiatives.

Moreover, the backlog stood at $46,130K in Q1 2024, a minor decrease from $47,831K in Q4 2023. However, it reflects an increase from $45,538K as of Q1 2023. Despite a minor sequential decline, the backlog remains solid. This signifies a sharp pipeline with revenue-generating opportunities. Additionally, the increase in backlog compared to Q1 2023 suggests sustained demand for M-Tron’s products and services.

Finally, the adjusted EBITDA increased by $1,234K to $2,262K for Q1 2024, a solid uplift from $1,028K for Q1 2023. Overall, the rapid growth in adjusted EBITDA reflects M-Tron’s improving operational edge and cost control measures.

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.

Yiannis Zourmpanos is the founder of Yiazou Capital Research, a stock-market research platform designed to elevate the due diligence process through in-depth business analysis.

Article printed from InvestorPlace Media, https://investorplace.com/2024/06/3-tech-stock-disruptors-to-buy-before-they-take-off/.

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