Innovators are thriving this year thanks to artificial intelligence and other advances, but finding the most undervalued tech stocks to buy in April may seem difficult. After all, this ecosystem is attracting so much attention that many companies are commanding a hefty premium.
But there are thousands of opportunities on the market. There are also plenty of ideas to consider, even in a specific field. It's impossible for Wall Street experts to cover them all. Therefore, finding undervalued gemstones, along with some research, definitely makes sense.
Of course, you have to accept a higher risk profile. If that's okay with you, these are the most undervalued tech stocks to buy in April.
Phototronics (PLAB)
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Listed in the Technology Ecosystem Semiconductor Equipment and Materials segment, phototronics (NASDAQ:PLAB) manufactures and sells photomask products and services in the United States and other countries. According to the company's public profile, the company provides photomasks used in the manufacture of integrated circuits (ICs) and flat panel displays (FPDs). We also specialize in transferring circuit patterns to semiconductor wafers.
Although most of the spotlight has focused on “front-face” semiconductor companies such as: Nvidia (NASDAQ:NVDA), investors need to find out what's going on behind the scenes. Basically, companies like Photronics are running the show well, making many undervalued technology stocks strong candidates to buy in April.
PLAB stock is currently trading at a trailing earnings multiple of 12.78. It also trades at 1.95 times trailing earnings. Both statistics are underestimates compared to the sector median. Furthermore, analysts predict that Photronics will enjoy decent earnings and sales growth in fiscal 2024.
DA Davidson is currently the only analyst covering the PLAB stock, assigning a Buy rating (but no price target).
Himax Technologies (HIMX)
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Another semiconductor company is Himax Technologies (NASDAQ:HIMX) is a fabless semiconductor company that provides display imaging technology in China, Taiwan, and many other countries. The company operates in two segments: driver ICs and non-driver products. We primarily focus on display driver ICs and timing controllers used in televisions, laptops, and automotive solutions, among many other applications.
Again, Himax is not what you would call a front-facing company. However, this is absolutely important for the smooth operation of the technology sector, especially consumer electronics. Still, Wall Street isn't necessarily rewarding his HIMX. That means the stock is currently trading at a trailing earnings multiple of 18.72x, below the sector median of 32.8x.
HIMX's top line is only 0.98x trailing year sales. Considering the broader relevance, this seems very low. To be fair, analysts are only expecting profit growth in FY2024, while expecting negative revenue growth. Investors may have to wait until fiscal 2025 for sales to expand.
Still, only one analyst rates HIMX a Buy with a price target of $7. Based on the underlying utility, this seems more reasonable. This is one of the most undervalued tech stocks to buy in April.
Viasat (VSAT)
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Developing business in the field of communication equipment, via sat (NASDAQ:VSAT) provides broadband and communications products and services worldwide. ViaSat's Satellite Services division provides satellite-based fixed broadband services, including broadband Internet access and VoIP services, to consumers and businesses, according to the company profile. We also provide in-flight entertainment and aviation software services to commercial airlines and private business jets.
Without a doubt, VSAT is one of the riskiest ideas in terms of the most undervalued tech stocks to buy in April. Since the beginning of the year, the stock has lost 41%. Over the past year, it's down almost 52%. Still, if the economy happens to move forward, demand for ViaSat could increase.
Here are the statistics. The stock trades at a trailing year earnings multiple of 2.18. The earnings multiple is approximately 0.45x. Both statistics are underground compared to the industry. But what's interesting is that analysts expect fiscal year 2024 sales to reach $4.22 billion, an increase of 65.3% from last year's print.
They also peg VSAT as a Moderate Buy with a $32.20 price target, suggesting 95% upside potential.
Publication date, Josh Enomoto did not have any positions (directly or indirectly) in any securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
