One of the golden rules in the market (and in life) is to get what you pay for. Therefore, the concept of cheap tech stocks is a bit questionable. Yes, the price can be as low as less than $10. But is it really a good thing?
Whenever you take a shot in the market, you should choose higher probability or higher predictability. The former approach is more attractive because it provides greater benefits if done correctly. Otherwise, you will probably end up incurring large losses. At that point, I should have chosen a boring, predictable name.
However, you probably won't be able to hit the big bucks without taking a few calculated potshots. With that in mind, here are some cheap tech stocks to consider.
GRAB
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It falls under the application software component of undervalued tech stocks; grab (NASDAQ:grab) is committed to delivering super apps in attractive emerging markets. They are Cambodia, Indonesia, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. The company offers the Grab ecosystem, which facilitates a wide range of services such as mobility and delivery, according to its public profile.
What makes GRAB so attractive is that it currently has a three-year earnings growth rate of 72%. Furthermore, the EBITDA growth rate for the same period was 37.5%. Indeed, as a company expands, these metrics slow down. Still, GRAB stock currently trades at 2.28x tangible book value, below the sector median of 3.53x.
Experts predict that sales for the current fiscal year will be $2.75 billion. This is a 16.7% increase from last year's circulation of $2.36 billion. Next year, sales could jump to $3.22 billion, a 17% increase over projected 2024 sales.
Finally, analysts rate GRAB a unanimous Strong Buy, with a price target of $4.41.
Payoneer (PAYO)
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Working in the infrastructure software area; Payoneer (NASDAQ:payo) operates as a financial technology company. The company operates a payments infrastructure platform that provides customers with a one-stop, global, multi-currency account for their accounts receivable and payable needs. Given trends in credit card usage, PAYO could be an interesting idea for cheap tech stocks.
Notably, the company's three-year earnings growth rate is 27.5%. This is 83.74% higher than its competitors. Additionally, PAYO appears to be undervalued relative to certain metrics. The stock currently trades at just 20.21 times trailing earnings, below the sector median of 26.3 times. Additionally, PAYO's price is 16.82 times its free cash flow.
Experts estimate that this year's sales could reach $882.83 million. This is a 6.2% increase from last year's circulation of $831.1 million. Also, in fiscal year 2025, he is likely to post revenue of $968.18 million, an increase of nearly 10% over the expected revenue in 2024.
Notably, PAYO is again a unanimous Strong Buy with an average price target of $6.88. The price target is capped at $9, making it a strong choice for undervalued tech stocks.
Himax (HIMX)
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fabless semiconductor company, Himax Technologies (NASDAQ:HIMX) provides display imaging technology to multiple international markets. We primarily provide display driver integrated circuits (ICs) and timing controllers used in televisions, PC monitors, laptops, mobile phones, tablets, and automotive solutions. This is quietly relevant, making it a solid idea for cheap tech stocks.
Himax is undervalued, along with its relevance to the broader technology ecosystem. HIMX currently trades at 17.16 times trailing earnings. This is lower than its competitors in the same sector by 72.27%. Additionally, sales in subsequent years are only 0.94x. Despite the company's history of impressive profits, it's not well-loved.
Experts predict that the company will earn 39 cents a share in 2024, up from 29 cents last year. Currently, average sales targets are required to be equivalent to last year's performance. However, the cap estimate calls for $1.03 billion, an increase from $945.43 million in 2023.
Analysts rate HIMX as a moderate buy, with a price target of $7.
VTEX
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Another company in the application software industry, VTEX (New York Stock Exchange:VTEX) provides a Software-as-a-Service (SaaS) digital commerce platform for enterprise brands and retailers. According to the company profile, VTEX enables customers to implement commerce strategies such as building online stores, integrating and managing orders across channels, and creating marketplaces for third-party vendors to sell their products. Masu. Beyond the US market, we serve exciting arenas such as Brazil, Argentina, and Chile.
The company is currently built for growth. The current three-year sales growth rate is 27.1%. This is an increase of over 83% compared to other sectors. However, investors pay a premium for this increased revenue. For example, VTEX has a trailing-year sales multiple of 6.75x, which is higher than the sector median of 2.21x.
Experts expect the company's loss per share to be no more than 1 cent in 2024. This is an improvement compared to his 7 cent loss last year. Also, sales could reach $243.32 million, an increase of 20.7% from $255.44 million in 2023.
Analysts consider VTEX a Moderate Buy with a price target of $10. The stock has hit highs of $13, making it one of the cheaper tech stocks to consider.
Stratasys (SSYS)
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Focusing on the computer hardware sector of undervalued tech stocks, Stratasys (NASDAQ:SSYS) offers connected polymer-based 3D printing solutions. According to its public profile, the company offers a variety of 3D printing systems, including PolyJet printers, stereolithography printing systems, and solutions for additive manufacturing. Given the history of this subsector, SSYS is risky. Still, it may attract speculators.
Stratasys has struggled to regain momentum on the business front. However, the company's balance sheet is strong, with a current debt ratio of 8.71x. This is higher than his 76.55% of competitors. Also, SSYS trades at 1.04x his tangible book value. In theory, this means that the market prices a stock only at a modest premium to the sum of its parts.
Investors may regret not jumping on SSYS when they had the chance. Yes, the projected revenue of $634.98 million for fiscal year 2024 is not that great compared to last year's actual revenue of $627.6 million. However, projected sales for 2025 could reach $678.46 million, an increase of nearly 7% over projected sales for 2024.
Analysts rate SSYS a consensus Strong Buy, with a price target of $16.40. It's worth noting that the most optimistic target is $23 per share.
IONQ
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operates under the subcategory of computer hardware; ion Q (New York Stock Exchange:ion Q) is working on developing general-purpose quantum computing systems. According to the company profile, IonQ sells access to quantum computers with a variety of qubit capacities. It integrates with multiple cloud platforms, including those provided by. Amazon (NASDAQ:AMZN) and microsoft (NASDAQ:MSFT). Quantum computers are poised to usher in the next wave of processing innovation, making IONQ an attractive idea among cheap tech stocks.
But to be fair, the company has a high-risk, high-return proposition. On the plus side, the business enjoys a strong balance sheet, with a cash-to-debt ratio of almost 44x. This ranks him higher than 88% of his competitors. On the other hand, the appraisal value is high. IONQ trades at more than 68 times his trailing-year earnings.
Nevertheless, the growth forecast is attractive, and some speculators believe the company has the potential to grow to premium levels. Experts believe that sales in 2024 could reach $38.93 million, an increase of 76.6% from the previous year's performance of $22.04 million. Revenue in 2025 could reach $81.83 million. If this happens, sales will increase by 110.2% compared to the 2024 sales forecast.
AST Space Mobile (ASTS)
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This corresponds to the area of communication equipment. AST Space Mobile (NASDAQ:ASTS) develops and provides access to space-based cellular broadband networks for smartphones. The company is perhaps best known for providing mobile broadband services to end users outside of land-based mobile phone coverage, according to its public profile. Such capacity has important industrial applications, as well as broader connectivity relevance.
As part of the broader space economy, ASTS is receiving significant attention. Nevertheless, this is an incredibly risky proposition, with the stock price down about 56% since the beginning of the year. It's worth mentioning that without any outstanding strengths on its balance sheet, AST is primarily a narrative play.
That's not to say that Wall Street experts reject the numbers on the table. On the contrary, it expects its fiscal year 2024 revenue to reach $77.67 million. Last year, the company posted nothing on its top line. Not only that, but the most optimistic goal calls for $155 million in sales.
Finally, analysts rate the ASTS stock as a unanimous Strong Buy, with an average price target of $11.13. If the stars align, we see 420% 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.
