The technology sector has been on an upward trend ever since AI came into the limelight. In some companies, microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA), industry coverage and valuations have increased significantly and show no signs of slowing down. However, just because a sector is doing well does not mean that all stocks are doing well. Some stocks take a hit during the sector's rally. This drop can lead you to look at tech stocks that you can buy at a discount.
For intrepid investors willing to take a chance, looking for oversold stocks during a bull market can be a great opportunity to buy stocks before they rebound. The contrarian approach is a high-risk strategy, but if timed right, it can yield big wins.
The question is which brand to choose. Companies that are underperforming at trading prices but are showing earnings growth may be attractive candidates. He has three companies for consideration.
Opfi (OPFI)
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AI may be the darling of the technology sector, but fintech will continue to have its place in an ever-evolving economy. Examples of companies include: opphi (New York Stock Exchange:OPFI) helps Americans access credit through its specialty products. The company uses proprietary AI-powered algorithms to help customers opt-in to programs like his OppFi TurnUp program and find affordable credit options on the market.
OppFi offers its customers a payroll deduction scheme based on SalaryTap as part of its secured installment loans.
OppFi ended 2023 on a strong note, with positive net income for the ninth year in a row.
For 2023, the company reported strong revenue growth of 12.4%, strong net income growth of 1082%, and even better adjusted EPS growth of 763.0%.
Todd Schwartz, CEO of the company, emphasized OppFi's commitment to maintain a strong balance sheet and profitability and grow expenses efficiently into FY24. While it may be underperforming on the market, consistent profitability and strong management make OPFI stock a worthy addition to your tech stock buy list.
Lantronics (LTRX)
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The Internet of Things (IoT) is a big technology that has the potential to shape the future.companies like Lantronics (NASDAQ:LTRX) are some of the market players who want to exploit this potential. This technology has the potential to be a game changer for a variety of industries, businesses, and smart cities.
Lantronix provides turnkey solutions for remote environment management Software as a Service (SaaS) and IoT. The company recently announced the release of Percepxion, his easy-to-deploy, preconfigured IoT solution that allows customers to connect to their existing connectivity and computing products. We have also expanded our M110 mobility solution family, which is preconfigured with Percepxion IoT software.
LTRX stock is down about 44% since the beginning of the year, giving investors an opportunity to buy at a deep discount, making it one of the best tech stocks to buy. On the other hand, the company's financial report shows a different trend.
Lantronix reported record second quarter 2024 revenue of $37 million. This represents an 18% year-over-year increase, with non-GAAP EPS doubling from $0.04 to $0.08 a year ago.
Additionally, the company expects continued growth with full-year sales in the range of $155 million to $165 million and non-GAAP EPS in the range of $0.35 to $0.45 per share.
With an expanding product portfolio and impressive performance, the current weak price performance may be the best time for investors to take advantage of Lantronix's growth potential.
Calix (CALX)
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Calix (New York Stock Exchange:Calcus) offers subscribers a variety of managed services that enable broadband service providers to innovate and transform their businesses. The company's platforms include Calix Cloud, Revenue EDGE, and Intelligent Access EDGE, which use machine learning to collect data and provide real-time insights to customers.
The company previously announced that it remains the only company to achieve TR-369 and TR-398 Broadband Forum certifications. Being the only company certified in these broadband protocols highlights the strength of Calix's business.
The company ended FY23 with strong numbers, benefiting from its strong cloud and managed services portfolio. Sales increased 19.8% year-over-year, and Calix expects his Q1'24 EPS to finish between $0.17 and $0.23, with sales of approximately $225 million to $231 million. doing. Despite the near-term challenges and performance decline, growth expectations and the upcoming surge in broadband investment could be a worthy catalyst for a rebound when we find a bottom.
On the date of publication, Rick Orford did not have (directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer and are influenced by InvestorPlace.com. Publishing guidelines.
