In this article we will take a look at the 10 best affordable tech stocks to invest in now. You can skip our comprehensive analysis of the tech industry’s outlook for 2021 and some of the major growth catalysts for tech stocks and go directly to 5 Best Affordable Tech Stocks to Invest In Now.
Technology is a vast industry, comprising sub-sectors like software, computers, electronics, artificial intelligence (AI), and other businesses related to information technology. Tech stocks are getting a lot of attention amid sterling returns and growth even in the midst of the pandemic. Earlier this week, tech stocks gained on the back of fresh jobs data that showed US jobless claims fell to a new low. Increasing yields and concerns about inflation have took a toll on the tech sector but analysts think that the broader technology sector is set for a rebound.
In this article we are going to mention some of the best and affordable tech stocks in the market. These stocks have long-term growth potential and are protected against the short-term volatility. It’s important to discuss affordable tech stocks because not everyone can buy expensive names like Visa Inc. (NYSE: V), Airbnb, Inc. (NASDAQ: ABNB), Mastercard Incorporated (NYSE: MA), Microsoft Corporation (NASDAQ: MSFT) and other notable tech giants in the fintech and software space. But an important thing to note here that that these expensive stocks were once affordable and cheap.
For example, Visa Inc. (NYSE: V), a leading global digital payment provider, was trading below $22 in April 2008. The company is one of the best performing tech stocks with strong revenues in Q1 2021 despite a slight drop from Q1 FY2020. The payments company reported net revenues of $5.7 billion and GAAP and non-GAAP net income of $3.1 billion in Q1 FY2021. Visa Inc. (NYSE: V) recently announced a partnership with Airbnb, Inc. (NASDAQ: ABNB) to allow Airbnb Hosts in some markets to access their earnings much easier and quickly.
Microsoft Corporation (NASDAQ: MSFT), which currently trades at $246, was trading below $35 in May 2001. It is one of the most popular tech stocks, with 258 elite hedge funds having stakes in the company as of the end of the fourth quarter, out of the 887 funds tracked by Insider Monkey.
Another stock that was once affordable is Mastercard Incorporated (NYSE: MA). It was trading below $5 in June 2006.
But that doesn’t mean that the market is out of cheap and affordable stocks. There are hundreds of stocks with strong business models and future growth potential that are trading in affordable price ranges today. For example, Hewlett Packard Enterprise Company (NYSE: HPE), one of the most notable enterprise software and tech companies, is trading at around $16. Hewlett Packard Enterprise (NYSE:HPE) is gaining ground as media reports suggest an activist investor might be loading up on the company’s shares, based on the latest 13F data. Latest filings show that Bank of America bought a whopping 39.5 million shares of Hewlett Packard Enterprise (NYSE:HPE) in the first quarter of 2021. Usually, Bank of America buys shares on behalf of funds. The basis of the latest speculation around Hewlett Packard Enterprise (NYSE:HPE) is Bank of America buying FirstEnergy shares in the previous two quarters. It was later disclosed that activist investor and billionaire Carl Icahn was the actual holder of these stakes in FirstEnergy.
It takes deep research and attention to fundamentals to spot the best affordable tech stocks to invest in now. But it’s not as easy as it sounds.
Even the hedge fund industry, which was once known for its impeccable stock-picking skills, is losing its reputation fast. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
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In this article, we review the 10 most affordable tech stocks to invest in now. We chose the stocks that are trading below $20, with strong growth potential and fundamentals.
Best Affordable Tech Stocks to Invest In Now
10. FireEye, Inc. (NASDAQ: FEYE)
Price as of May 12, 2021: $19.21 per share
Number of Hedge Fund Holders: 31
FireEye, Inc. (NASDAQ: FEYE) is a U.S-based technology company that offers intelligence-based cybersecurity solutions to help organizations prepare for, prevent, investigate, respond to, and remediate cyber-attacks.
The company has announced integrating Microsoft Defender for Endpoint into its Mandiant Managed Defense, Mandiant’s managed detection and response service. The integration is in line with the company’s Mandiant strategy that involves unveiling innovative security products to allow security teams access to actionable intelligence from the frontline, irrespective of security controls. The two platforms allow security teams to quickly and effectively apply proven response tactics to direct swift, decisive security operations. FEYE ranks 10th in the list of best affordable tech stocks to invest in now.
FireEye, Inc. (NASDAQ: FEYE) recently announced its financial results for Q1 2021, with revenues increasing by 10% to $246 million compared to what was reported in a similar period in 2020. The company reported $643 million in annualized recurring revenue, representing a 9% increase compared to what was reported in Q1 2020. Annualized recurring revenue from record platform, cloud subscription, and managed services amounted to $352 million. This represents a 22% increase compared to what was reported in the first quarter of 2020.
9. Amkor Technology, Inc. (NASDAQ: AMKR)
Price as of May 12, 2021: $18.06 per share
Number of Hedge Fund Holders: 24
Amkor Technology, Inc. (NASDAQ: AMKR) offers outsourced semiconductor packaging and test services. The technology company reported a 15% increase in revenue for Q1 2021 to $1.33 billion in the recently announced financial results. Amkor Technology, Inc. (NASDAQ: AMKR) reported a gross margin of 20.0% and an operating income margin of 10.9% during the quarter. Net income during the quarter amounted to $120 million, while earnings per diluted share were $0.49. AMKR ranks 9th in the list of best affordable tech stocks to invest in now.
Amkor Technology, Inc. (NASDAQ: AMKR) projects its net sales for 2021 to range between $1.29 billion and $1.39 billion, while net income will range between $77 million and $127 million.
Amkor Technology, Inc. (NASDAQ: AMKR) has unveiled measures to help propel its agenda to achieve Industry 4.0 initiatives to further boost its position as an industry leader in quality and efficiency excellence. With the integration, Amkor Technology, Inc. (NASDAQ: AMKR) is now relying on real-time, in-process decision-making to gain asset utilization, product quality, and efficiency in production, marketing, and supply. Amkor Technology, Inc. (NASDAQ: AMKR) is banking on the Industry 4.0-era tools to reduce cycle times for advanced packaging processing.
The stock was recently upgraded to ‘Buy’ from ‘Hold’ by CFRA, while Credit Suisse’s Randy Abrams upgraded the stock to ‘Outperform’ from ‘Neutral.’ Like Visa Inc. (NYSE: V), Airbnb, Inc. (NASDAQ: ABNB), Mastercard Incorporated (NYSE: MA) and Microsoft Corporation (NASDAQ: MSFT), AMKR is one of the best tech stocks to buy now.
8. SolarWinds Corporation (NYSE: SWI)
Price as of May 12, 2021: $16.11 per share
Number of Hedge Fund Holders: 24
SolarWinds Corporation (NYSE: SWI) is a U.S-based information technology (IT) infrastructure management software company with clients worldwide. The company recently announced strong financial results for the Q1 2021 with a 4% growth in total revenue to $256.9 million compared to what was reported in a similar period in 2019. SWI ranks 8th in the list of best affordable tech stocks to invest in now.
SolarWinds Corporation (NYSE: SWI) has also announced that it has integrated N-able N-central with Microsoft Corporation (NASDAQ: MSFT) Intune to allow MSPs better manage and protect their clients’ devices and applications. Microsoft Corporation (NASDAQ: MSFT) Intune is part of the Microsoft 365 Business Premium apps package. The integration allows N-central users to access Intune-managed devices to streamline development and configuration directly from the N-central dashboard.
Like Visa Inc. (NYSE: V), Airbnb, Inc. (NASDAQ: ABNB), Mastercard Incorporated (NYSE: MA) and Microsoft Corporation (NASDAQ: MSFT), SWI is one of the best tech stocks to buy now.
7. Hewlett Packard Enterprise Company (NYSE: HPE)
Price as of May 12, 2021: $15.68 per share
Number of Hedge Fund Holders: 30
Hewlett Packard Enterprise Company (NYSE: HPE) is a global tech company that supplies solutions that allow customers to seamlessly collect, analyze, and draw meaningful, actionable insights from data. HPE ranks 7th in the list of best affordable tech stocks to invest in now.
Hewlett Packard Enterprise Company (NYSE: HPE) has unveiled an innovative technology that transforms Hewlett Packard Enterprise Company (NYSE: HPE) Storage into a cloud-native, software-defined data services business. In line with this development, Hewlett Packard Enterprise Company (NYSE: HPE) unveiled a new data services platform to boost its Unified DataOps vision to create a new data experience that integrates cloud models into any data operations.
Hewlett Packard Enterprise Company (NYSE: HPE) has landed a $40M SGD contract to construct a new supercomputer for the National Supercomputing Centre (NSCC) Singapore. NSCC is the country’s high-performance computing (HPC) resource center that supports science, computing, and engineering needs of research, academics, and industry communities.
6. Flex Ltd. (NASDAQ: FLEX)
Price as of May 12, 2021: $16.72 per share
Number of Hedge Fund Holders: 44
Flex Ltd. (NASDAQ: FLEX) specializes in design, engineering, production, and supply chain solutions to equipment producers in Asia, Europe, and the Americas. The company reported strong financial results for the fourth quarter and fiscal year ended March 31, 2021, with net sales amounting to $6.3 billion and GAAP net income totaled $240 million. FLEX ranks 6th in the list of best affordable tech stocks to invest in now.
The company projects to report between $25 billion and $26 billion for FY 2021. Flex Ltd. (NASDAQ: FLEX) has also projected a GAAP EPS of between $1.30 and $1.45 for the period. Like Hewlett Packard Enterprise (NYSE:HPE), Visa Inc. (NYSE: V), Airbnb, Inc. (NASDAQ: ABNB), Mastercard Incorporated (NYSE: MA) and Microsoft Corporation (NASDAQ: MSFT), FLEX is one of the best tech stocks to buy now.
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Disclosure: None. 10 Best Affordable Tech Stocks to Invest In Now is originally published on Insider Monkey.
