Cheap Tech Stocks to Consider for Your Portfolio
A cheap tech stock can become a diamond in the rough for your investment portfolio. In fact, some of the most experienced investors have made their names through this industry.
Remember the Tesla (Nasdaq: TSLA) initial public offering (IPO) in 2010 was for $17 a share. It’s now trading over $1,800 and rising faster than ever, making Elon Musk the fourth richest man in the world. And to make it easier for smaller buyers to invest, there’s an upcoming 5-for-1 Tesla stock split.
Now, it may be difficult to reach the levels of Elon Musk. But you can carve out your own piece of the pie by making educated investments in undervalued tech stocks.
Best Cheap Tech Stocks on the Market
The technology industry has been at the forefront of the stock market for quite some time. In general, the industry commonly outperforms the rest of the market.
Just look at Microsoft (Nasdaq: MSFT), Amazon (Nasdaq: AMZN), Apple (Nasdaq: AAPL) and Alphabet (Nasdaq: GOOGL). All of these companies have become stock market juggernauts over the years. And they show no signs of slowing down as we enter the 2020s.
However, what cheap tech stocks have the potential to burst onto the scene in the next decade? Is there another Tesla out there?
Let’s take a deeper look. Consider these four tech stocks for your portfolio going forward.
- Western Digital Corp. (Nasdaq: WDC)
- Amkor Technology Inc. (Nasdaq: AMKR)
- Celestica Inc. (NYSE: CLS)
- Zynga Inc. (Nasdaq: ZNGA)
For context, each of these stocks is currently trading below $15 a share outside of Western Digital. If you would like to dig further down the rabbit hole, you may want to consider a few tech penny stocks for your next investment.
Western Digital Corp.
Western Digital is the sole stock in this list trading above $15 a share. But it certainly deserves some recognition as one of the best cheap tech stocks.
The computer hard drive manufacturer and data storage company from San Jose, California, has “undervalued” written all over. While it’s trading at over $30 a share, that’s still less than one times its sales.
Its fourth quarter fiscal 2020 earnings report paints a broader picture. Earnings-per-share (EPS) was higher than analyst estimates and revenues grew by 18% year over year.
Yet, the company cut its revenue forecasts for 2021 from $3.9 billion to $3.7 billion. This change quickly translated to the stock market as the stock has slid since the report’s release in early August. Now may be the time to pounce as the stock’s upside and potential are as good as they get.
Amkor Technology Inc.
Amkor is a company that has become a popular cheap tech stock to buy, and for good reason. The semiconductor product packaging and test services provider is trading below $15 at the moment.
However, it’s nearly doubled in value since the beginning of the coronavirus pandemic. Investors have taken notice as it continues to outperform other technology stocks and here’s why.
Its latest earnings report shows that net sales were up 31% year over year. The growth is steady and it hasn’t been affected by the pandemic.
This consistency alone has caught the eyes of investors across the country. It’s trending upward and fast. So you may want to jump on this train before it takes off for good.
Celestica is a Canadian company that manufactures multinational electronics. It’s trading around $8 a share and has shown steady growth in 2020.
So why is this cheap tech stock one to watch? The earnings and revenue tell you everything you need to know.
It’s surpassed EPS estimates for each of the past four quarters. And revenues for the quarter ending in June of 2020 reached $1.49 billion. You may want to add this to your tech stocks list while its share price is undervalued in the market.
Zynga is a cheap tech stock that is growing as quick as anyone on this list. The mobile video game developer is trading below $10 a share and has tons of upside.
Not only is it the maker of popular games such as FarmVille and Words with Friends, but also it’s producing more major titles than ever before. Furthermore, the company recently acquired an Istanbul-based mobile game developer with titles that have been downloaded more than 250 million times.
Zynga stock is skyrocketing as a result of the recent acquisition and its upcoming mobile games. You may want to keep a close eye on this one as it has the potential to shake up the gaming market.
Investing in Cheap Tech Stocks
The technology industry isn’t going anywhere. So why not diversify your portfolio with proven winners in the stock market?
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From penny stocks to blue chips, there’s always an investment opportunity to consider. Therefore, you don’t want to overlook cheap tech stocks for your growing portfolio.