Innovation always moves forward: that’s the driving narrative behind tech stocks to buy on discount. No, I’m not going to blow smoke. It really stinks to lose money on your favorite ideas, especially during these severe broader downcycles. But here’s the thing. You can mope around and feel bad about the situation. Or you can grab some compelling discounts that are now available.

To better gauge what’s a true deal from something that’s merely cheap, I’m going to focus heavily on valuations, particularly sales. Sometimes, tech firms generate earnings but usually, the focus is on expanding the top line. This way, we have a better means of comparing apples to apples.

For reference, I will be targeting seven companies from four industries. Their respective price-to-sales ratios are as follows:

• Communication equipment: 1.57X
• Computer hardware: 2.17X
• Software (application): 3.84X
• Software (infrastructure): 4.14X

So, let’s not just pick entities that are merely printing red ink. Instead, let’s be a bit more selective with our bargain hunting. Below are tech stocks to put on your watchlist.

RingCentral (RNG)

Let’s get right into it with RingCentral (NYSE:RNG). Falling under the software application sector, RingCentral provides cloud communications, video meetings, collaboration and contact center software solutions worldwide. RNG stock has been choppy this year, gaining only a bit over 1% since the beginning of the year.

Right now, shares trade hands at 1.37X trailing-year sales. That’s a discount relative to average levels seen during the first quarter, when the metric reached 1.5X. Overall, in the past year, the price-to-sales ratio stands at 1.47X. During this time, it reached an average peak of 1.52X in Q2 2023.

Looking out to the end of the year, analysts believe that sales could rise to $2.4 billion. If so, that would imply a lift of 8.7%. In the following year, sales could move up again to $2.59 billion. Further, the high-side estimate calls for $2.63 billion.

Assuming a shares outstanding count of 82.25 million, RNG stock is trading at projected high-side 2025 sales. That could turn out to be an attractive opportunity among discounted tech stocks.

Akamai Technologies (AKAM)

One of the top tech stocks in the infrastructure software realm, Akamai Technologies (NASDAQ:AKAM) provides cloud computing, security and content delivery services in the U.S. and other international markets. In particular, it’s well known for keeping users safe from various cyberattacks. Given rising concerns over net vulnerabilities, AKAM offers an intriguing opportunity.

Right now, AKAM stock trades hands at 3.7X trailing-year revenue. During Q1, the average metric shot up to 4.43X. Notably, in Q4 of last year, the price-to-sales ratio was exceptionally elevated at 4.91X. Overall, in the past year, the statistic stands at 4.46X. Therefore, AKAM is a discounted idea to consider.

For fiscal 2024, covering experts believe that revenue could rise to $3.99 billion. The high-side view calls for $4.03 billion. In the following year, sales could move up again to $4.28 billion. And the most optimistic expert believes $4.4 billion is realistic.

Assuming a shares outstanding count of 152.32 million, AKAM stock is trading at 3.21X projected high-side 2025 sales. It’s one of the tech stocks to keep on the radar.

Dell (DELL)

Computer hardware specialist Dell (NYSE:DELL) was one of the outperformers this year thanks to relevancies regarding artificial intelligence. Things were looking absolutely spectacular up until the end of May. Since then, circumstances have looked much more pedestrian. Since the start of the year, DELL stock has “only” gained about 18%.

Still, for those who appreciate value, Dell could be an intriguing idea. Presently, shares trade hands at 0.77X sales. That’s well below the average for the computer hardware sector. However, it must be said that in the past year, the price-to-sales ratio landed at 0.53X. In other words, DELL is trading at a relative premium compared to recent historical data.

However, keep in mind that analysts believe by the end of the current fiscal year, sales could rise to $96.41 billion. That would be up 9% from last year’s haul of $88.42 billion. In the following year, revenue could swing up to $103.58 billion. Further, the high-side view stands at $114.15 billion.

Assuming a shares outstanding count of 312.69 million, DELL stock is trading hands at 0.24X projected 2025 high-side revenue. That’s probably not going to last. It’s one of the tech stocks to keep tabs on.

Similarweb (SMWB)

Operating in the application software field, Similarweb (NYSE:SMWB) provides cloud-based digital intelligence solutions in the U.S. and multiple international markets. Primarily, it offers digital research intelligence solutions for its enterprise-level customers. SMWB stock has been on the move recently, with the equity gaining over 18% on Wednesday. It’s still a solid idea for tech stocks on discount.

Right now, SMWB stock trades at 2.2X sales. That’s already low for the underlying industry. Further, in Q2, the average price-to-sales ratio stood at 2.72X. And in Q1 of this year, the stat jumped to 3.21X. Overall, in the past year, the metric averaged 2.57X.

For fiscal 2024, analysts are modeling for sales to hit $244.76 million. If so, that would represent a 12.3% lift from last year’s print of $218.02 million. Also, the high-side view calls for $247 million. In the following year, revenue could bump up to $278.3 million.

Assuming a shares outstanding count of 80.93 million, SMWB is trading at 2.16X consensus 2025 sales. It’s another intriguing candidate for tech stocks to buy.

Alarum Technologies (ALAR)

Another player in the infrastructure software space, Alarum Technologies (NASDAQ:ALAR) provides Internet access and web data collection solutions. Primarily, the company offers security blanket protection against ransomware, viruses, phishing and other online threats. Due to the catastrophic impact that such threats pose, Alarum could be a tempting idea among discounted tech stocks.

Presently, ALAR stock trades hands at 3.5X sales. That’s somewhat elevated though noticeably lower than the underlying industry’s average metric of 4.14X. However, it must be said that ALAR is trading at a premium relative to the prior year’s average of 1.45X. Still, investors may want to exercise patience.

That’s because by the end of fiscal 2024, revenue might land at $36.17 million. If so, that would imply a growth rate of 36.4% from last year’s tally of $26.52 million. In the following year, experts are modeling for sales to hit $44.1 million. The high-side view calls for a top line of $45.9 million.

The shares outstanding count at time of writing is 6.87 million. If it stays the same, ALAR stock would be trading at 3.01X projected 2025 high-side sales. It’s worth a long look among attractive tech stocks.

Airgain (AIRG)

Operating in the communication equipment industry, Airgain (NASDAQ:AIRG) provides wireless connectivity solutions that create and deliver embedded components, external antennas and integrated systems worldwide. It might not be the sexiest business model ever. However, it plays a significant role in emerging technologies such as the Internet of Things. Therefore, it’s one of the top tech stocks to consider.

Right now, AIRG stock trades hands at 1.27X sales. That’s undervalued relative to the sector average of 1.57X. However, it must be said that Airgain is trading at a premium relative to recent historical data. During Q2, the average ratio sat at 1.17X. And in the past year, the metric came out to 0.82X. Still, patience could be key.

By year’s end, analysts are modeling revenue to reach $63 million. That’s up 12.4% from the prior year’s haul of $56.04 million. The high-side estimate calls for $63.3 million. In the following year, the forecast calls for $78.6 million, up 24.8% from projected 2024 revenue.

Assuming a share outstanding count of 10.78 million, AIRG stock is trading at 0.88X projected 2025 revenue. This might be a deal you can’t afford to ignore.

International Money Express (IMXI)

Saving the riskiest idea on this list of tech stocks for last, International Money Express (NASDAQ:IMXI) seems like a compelling idea. An infrastructure software specialist, International Money operates as an omnichannel money remittance service. Unfortunately, the company missed its Q2 expectations, sending IMXI stock plunging. On Wednesday, it lost over 20% of equity value.

Given the massive hemorrhaging, International may be too rich for most investors’ blood. However, for those who want to speculate, IMXI stock now trades at 0.91X sales. That’s much lower than the Q1 average of 1.26X. Also, in Q2 of last year, the stat shot up to 1.62X. In the past year, the multiple averaged 1.3X.

Looking ahead, the company adjusted down its expectations, with the high-side revenue target coming in at $677.6 million. In contrast, the prior consensus view stood at $689.26 million. Adjusting for the new realities and assuming a shares outstanding count of 32.64 million, IMXI stock is trading at 0.84X sales.

As it stands, IMXI is undervalued. If the company were to hit its high-side guidance, it would be even more of an enticing deal.

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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.