There are a lot of great tech stocks out there beating the market that most people have never heard about. These are typically stocks that have small market capitalizations, get little attention from Wall Street analysts, and are ignored by the financial press. Yet these under-the-radar stocks quietly outperform the broader market and deliver outsized returns to their shareholders.
For people lucky enough to own these undiscovered stocks, they can provide a meaningful boost to a portfolio and deliver consistent gains. The difficult part is finding these hidden gems. Fortunately, we have dug around and discovered the following stocks that are on the rise and highly praised by the few analysts who track the progress of the companies behind the ticker symbols.
Here is treasure hunt: three tech stocks Wall Street hasn’t discovered yet.
Onto Innovation (ONTO)
Onto Innovation (NYSE:ONTO) is a semiconductor company you almost never hear about. The company was created in 2019 through the merger of other semiconductor concerns. Currently, ONTO stock has a market capitalization of $10 billion and six Wall Street analysts cover the company. Compare that to Nvidia (NASDAQ:NVDA) which has a market cap of $3 trillion and more than 40 professional analysts tracking its progress.
Yet Onto Innovation’s stock has been a powerhouse. Since its creation five years ago, ONTO stock has gained 535%, including a 53% increase so far in 2024. The few analysts who cover the company see more upside ahead. The consensus view is that Onto Innovation stock is a “strong buy,” with a median price target that is 15% higher than current levels. There are no “sell” ratings on this undiscovered tech stock.
Turtle Beach (HEAR)
For a small cap technology stock, look to Turtle Beach (NASDAQ:HEAR). Video game fans will be familiar with Turtle Beach’s main product, the headsets that gamers wear and use to communicate with one another. However, few if any investors are likely to be familiar with the company’s stock, which has a market cap of only $305 million. Right now, a total of five Wall Street analysts offer ratings and price targets on HEAR stock.
Like Onto Innovation, Turtle Beach stock is an undiscovered gem that has upside potential. Year-to-date, HEAR stock has risen 37%, outpacing the broader market. Analysts rate the stock a “strong buy” and have a median price target on it that is 57% above where the shares currently trade. The lowest estimate on Turtle Beach’s stock right now is 20% higher than current levels. This video game company is worth checking out.
Light & Wonder (LNW)
Now for a different type of gaming stock. Light & Wonder (NASDAQ:LNW), formerly known as the Scientific Games Corporation, makes games for casinos. Specifically, it makes slot machines and devices that shuffle decks of cards. You have Light & Wonder to thank for the noisy, brightly lit slot machines in casinos today. The company’s origins date back to 1917 when it created systems that allowed people to bet on horse racing.
Like the other names on this list, LNW stock has been a huge outperformer over the years. The share price is up 30% so far this year, has gained 55% in the last 12 months, and has increased 436% over the past five years. Yet the company’s market capitalization stands at only $9.5 billion and only six analysts actively cover the company. Owing to its big run over the past year, the consensus view on Light & Wonder stock is a “hold.” Investors should consider building a position in this undiscovered stock on any pullbacks. Make the right play and grab these stellar tech stocks.
On the date of publication, Joel Baglole held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
