of Nasdaq It hit a record high after Fed Chairman Jerome Powell made reassuring comments to investors, with the central bank's next interest rate change expected to come in around do not have The announcement will drive prices higher even though inflation was higher than expected. The announcement was greeted with optimism, sending most tech stocks higher. And stocks like NVDA, TSLA, and AAPL are leading the way in terms of trading volume. However, investors chasing the hottest names brings volatility to the market. This got me thinking about some overlooked tech stocks that could soar 10x or more.
Unlike stocks that move with the market, you can turn your attention to other stocks that don’t usually follow the trend but can still generate significant profits for investors. To do that, you need to take their beta into consideration.
Beta is a measure of a stock's sensitivity to a stock index. If a stock's beta is 1, then the stock price will move in line with the stock index. If the beta is lower than 1, the stock price will be less volatile to market sensitivity, making it a great choice for risk-averse investors.
I used several criteria to create a list of overlooked stocks in the technology sector that have the potential to skyrocket tenfold.
- year to date (YTD) The price change exceeds 15%
- Year-on-year increase (Year-on-year change) Revenue Growth
- 5-year monthly beta less than 1
We then sort them from highest to lowest based on the stock's year-to-date price percentage return.
Verify Me (VRME)
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confirm (Nasdaq:VRME) provides specialized software and process technology for traceability and authentication using machine learning and artificial intelligence.artificial intelligenceThe company operates primarily in two business segments.
- Precision logistics: We specialize in predictive analytics to help optimize the delivery and temperature of sensitive perishable goods.
- certification: Specializing in traceability, it enables brands to connect consumers with their products.
The company operates through two subsidiaries, Trust Codes Global and PeriShip Global, which operate its main business segments.
VerifyMe had some improved metrics to report in fiscal 2023. Annual revenue increased 29% year over year to $25.3 million. Gross profit also increased 36% to $9 million. This improvement helped the net loss narrow to $3.4 million from $14.4 million in 2022.
In addition, the CEO (CEO) President Adam Stedham was pleased with the results, saying, “We have a strong balance sheet and 2023 marks our first year of positive operating cash flow.”
This continued improvement highlights the huge potential for growth. Coupled with a year-to-date price yield of 44.6% and a 5-year monthly beta of 0.53, VRME stock has the allure of being an unseen winner, poised to bolster any investor's portfolio.
Comovolt Systems (CVLT)
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Cybersecurity is extremely important in modern society. Commvault Systems (Nasdaq:CVLT) helps you ensure your online security. They offer a unified management platform that can be used anywhere, in any configuration.
Commvault offers a variety of software subscriptions, software as a service (Cloud) or partner-managed through its Metallic Portfolio. Recently, the company announced the acquisition of Appranix, which aims to keep enterprise clients up and running even during cyberattacks.
Commvault reported strong performance for FY24 with total revenue growing 7% year over year. Total ARR reached $770 million, a growth rate of 15%, while subscription ARR grew even more, at 25%. This strong performance translated into an impressive earnings turnaround of $3.85 per share, up from a loss of 80 cents last year. This success was driven by the popular Commvault Cloud platform and increased demand due to cyber threats.
Despite the good news, Commvault remains an overlooked stock, with a five-year beta of 0.65 and a year-to-date price return of 43%. A relatively unknown and impressive performer, CVLT stock could be a great choice for investors looking for a low-risk tech investment.
VERX
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It is often said that one thing in life is inevitable: taxes. That is why companies like Vertex (Nasdaq:Welks) is a leading provider of corporate tax technology solutions.
The company's solutions provide local, state and value-added tax calculations. Vertex's software products are sold as a service, through cloud subscriptions or software licenses, and are available in the United States and internationally. In addition to tax software, Vertex offers a range of services including indirect tax return preparation, payment and filing.
The company delivered strong performance in fiscal 2023, with revenue up 16.4% year over year. Software subscription revenue was $480.8 million, up 15.7%, and cloud revenue was $214.6 million, up 27.1%. The company posted a bottom line loss of 9 cents, but continued to see net revenue retention improve 113%, driven by high customer retention and the ability to scale.
With a low five-year monthly beta of 0.65 and year-to-date price volatility of 25%, VERX stock is a low-risk tech stock with a favorable outlook.
As of the publication date of this article, Rick Orford did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are solely those of the author, which is subject to InvestorPlace.com copyright. Publication Guidelines.
