In this article, we discuss the 10 best low-cost tech stocks to buy right now. You can skip our detailed analysis of the tech sector and its future potential growth, and go directly to read 5 Best Low-Cost Tech Stocks to Buy Right Now.
As technology began to dominate nearly every aspect of life today, investors remain heavily bullish on tech stocks. This goes without saying that the tech sector opened new avenues for investors during the pandemic, holding the fort during uncertain times by adapting to the new normals more quickly than other sectors.
As reported by United Nations Conference on Trade and Development (UNCTAD), technology remained crucial to address the effects of the pandemic amidst the technological wave. The frontier technology market is currently valued at $350 billion and is expected to reach $3.2 trillion by 2025, the report mentions. Due to this, the sector is becoming largely popular among investors.
According to a survey conducted by Fortune, investors reported a positive return of investments (ROI) from tech investments in 2020. Moreover, the survey also mentioned that the use of robotics and AI in respective organizations has tripled since 2018. In the past six months, the tech-heavy NASDAQ has outperformed the major benchmarks, gaining 23.8%, compared with 9.34% gains of the S&P 500 during the same time. Moreover, technology stocks drove the benchmark index to mark its 66th all-time high of 2021, the second-highest number after 1995’s 77 times, as reported by Bloomberg. In November, big tech stocks like Advanced Micro Devices, Inc. (NASDAQ:AMD), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL) particularly remained popular among individual investors.
David Lebovitz, an analyst at JPMorgan, recently presented a positive outlook on the tech sector and asserted that tech stocks are currently well-positioned to generate better profit margins across the whole financial market. Along with presenting better opportunities to beginner investors, tech stocks function as a key driver of economic growth. In this article, we will focus on low-cost tech stocks, trading under $50.
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Our Methodology:
Let’s analyze our list of the best low-cost tech stocks to buy right now. The stocks mentioned below are traded below $50 per share, as of November 26. For this list, we considered the analysts’ ratings and future growth potential of the companies. Along with this, the hedge fund sentiment was measured using data from 867 hedge funds tracked by Insider Monkey in Q3.
Best Low-Cost Tech Stocks to Buy Right Now
10. Blink Charging Co. (NASDAQ:BLNK)
Number of Hedge Funds: 6
Share Price as of November 26: $38.1
An American electric services company, Blink Charging Co. (NASDAQ:BLNK) reported record revenue of $6.4 million in Q3, up significantly 611.1% from the prior-year quarter. The company mainly specializes in providing fast EV charging stations and networks for commercial and industrial consumers.
As the U.S. Government allocated over $7.5 billion to electric network charging build-out in the U.S., HC Wainwright remained bullish on Blink Charging Co. (NASDAQ:BLNK) and recently upgraded the shares to Buy, while keeping a $50 price target on the stock. In the past year, Blink Charging Co. (NASDAQ:BLNK) delivered a 60% return to shareholders.
As of Q3, 6 hedge funds tracked by Insider Monkey reported owning stakes in Blink Charging Co. (NASDAQ:BLNK), down from 7 in the previous quarter. The total value of these stakes is over $4.3 million.
Following in the footsteps of popular stocks such as Advanced Micro Devices, Inc. (NASDAQ:AMD), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), Blink Charging Co. (NASDAQ:BLNK) is also gaining importance in the tech space.
9. EVERTEC, Inc. (NYSE:EVTC)
Number of Hedge Funds: 17
Share Price as of November 26: $42.01
EVERTEC, Inc. (NYSE:EVTC) is a technology and communication company that provides services in the transaction processing business. With over 30 years of experience and operations in more than 26 countries, EVERTEC, Inc. (NYSE:EVTC) remains one of the best low-cost tech stocks to buy right now.
Jim Simons’ Renaissance Technologies held the largest stake in EVERTEC, Inc. (NYSE:EVTC), worth over $60 million, as of Q3. Overall, 17 hedge funds tracked by Insider Monkey were bullish on the company in Q3, compared with 20 in the previous quarter. These stakes are valued at roughly $190 million.
EVERTEC, Inc. (NYSE:EVTC) announced its Q3 results on October 26 and reported revenue beat across the Payment Services and Merchant Acquiring segments. Overall, the company earned $145.9 million in revenues, experiencing a 6.9% year-over-year growth. Following its solid Q3 results, Susquehanna raised its price target on EVERTEC, Inc. (NYSE:EVTC) to $52, while maintaining a Positive rating on the shares.
8. Bentley Systems, Incorporated (NASDAQ:BSY)
Number of Hedge Fund Holders: 18
Share Price as of November 26: $49.38
Recently, KeyCorp presented a positive stance on Bentley Systems, Incorporated (NASDAQ:BSY), an American software company. The firm raised its price target on the stock to $72, while keeping an Overweight rating on the shares. The company’s software is mainly used in developing and managing infrastructure, including industrial and power plants, which, along with many other factors, places it as one of the best low-cost tech stocks to buy right now.
In its Q3 reports, Bentley Systems, Incorporated (NASDAQ:BSY) posted an EPS of $0.17, beating the estimates by $0.01. The company’s revenue for the quarter stood at $248.4 million, experiencing a 22.4% growth from the prior-year quarter. After hitting a low of $35.2 per share in November 2020, the stock bounced back, gaining 40.01% in the past year.
As per Insider Monkey’s Q3 data, 18 hedge funds tracked by Insider Monkey were bullish on Bentley Systems, Incorporated (NASDAQ:BSY), up from 17 in the previous quarter. These stakes are valued at $141.7 million, growing significantly from $81.4 million in Q2.
In addition to Advanced Micro Devices, Inc. (NASDAQ:AMD), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), Bentley Systems, Incorporated (NASDAQ:BSY) is also gaining the attention of hedge funds and growth investors.
Artisan Partners mentioned Bentley Systems, Incorporated (NASDAQ:BSY) in its Q2 2021 investor letter. Here is what the firm has to say:
“Among our top contributors (includes) Bentley Systems. Bentley Systems is the leading provider of infrastructure engineering software used to design roads, bridges, tunnels, rail systems and other public works. We believe there is a meaningful opportunity for infrastructure spend on IT over the next decade given an increased focus on improving the productivity and efficiency of design, build and maintenance. In addition, infrastructure is one of the least digitized verticals of the economy (0.5% of spend is on IT), and there are significant opportunities for software to increase its share. We believe this opportunity is particularly compelling not only in the US, where many roads, bridges, ports and water supply systems were built in the 1950s and 1960s, but also in the Asia Pacific region (China, India), which is expected to represent the bulk of global infrastructure spending over the next couple of decades as the region is forecasted to grow to nearly half of global GDP and population.”
7. Marqeta, Inc. (NASDAQ:MQ)
Number of Hedge Fund Holders: 20
Share Price as of November 26: $22.05
Though Marqeta, Inc. (NASDAQ:MQ) suffered a decline in the number of hedge funds holding stakes in the company in Q3, its innovative financial technology models were widely lauded by analysts and investors. Recently, Mizuho lifted its price target on the California-based IT service management company to $27 and maintained a Neutral rating on the shares.
In Q3, 20 hedge funds in Insider Monkey’s database reported owning a $1.1 billion worth of stake in Marqeta, Inc. (NASDAQ:MQ). In the previous quarter, 35 hedge funds held stakes in the company, valued at $1.06 billion. Among these hedge funds, Coatue Management was the largest shareholder of Marqeta, Inc. (NASDAQ:MQ) in Q3, holding stakes worth $612.4 million.
Recently, Marqeta, Inc. (NASDAQ:MQ) announced its partnership with Mastercard to launch a digital card product for consumers to get paid faster. In its Q3 results, the company posted a GAAP EPS of -$0.08, beating the consensus by $0.09.
Artisan Partners mentioned Marqeta, Inc. (NASDAQ:MQ) in its Q3 2021 investor letter. Here is what the investment management firm has to say:
“Marqeta is a digital payment software company with a focus on providing fintechs and merchants the infrastructure to build and process configurable payment cards. The company’s superior API technology allows it to easily connect to customers’ internal systems, enabling quicker product development and introduction. Marqeta’s growth over the years has been largely attributed to its partnership with Square’s Cash App—more than 70% of revenues—but we believe recent client wins (Google Pay) and the continued emergence of innovative digital payment services who need Marqeta’s technology infrastructure make for a compelling profit cycle ahead. With shares pulling back during the quarter, we initiated a small GardenSM position.”
6. Viavi Solutions Inc. (NASDAQ:VIAV)
Number of Hedge Fund Holders: 23
Share Price as of November 26: $15.15
Viavi Solutions Inc. (NASDAQ:VIAV) is an American network test and technology company that develops and manufactures testing and monitoring equipment for related organizations. The company makes it to our list of the best low-cost tech stocks to buy right now as it also manages complex 5G and fiber networks.
Viavi Solutions Inc. (NASDAQ:VIAV) announced its fiscal Q1 2022 results on November 4, beating the analysts’ estimates on nearly all grounds. The company earned $326.8 million in revenues, crushing estimates by $16.21 million. Moreover, Viavi Solutions Inc. (NASDAQ:VIAV) posted an EPS of $0.24, versus the consensus of $0.21. Appreciating the company’s 5G expansion, recently, Morgan Stanley lifted its price target on the stock to $18, while keeping an Equal Weight rating on the shares.
At the end of Q3 2021, 23 hedge funds in Insider Monkey’s database held stakes in Viavi Solutions Inc. (NASDAQ:VIAV), compared with 24 in the previous quarter. The stakes are valued at $228.4 million, up from $233.6 million in Q2. Woodline PartnersKarl was the company’s largest shareholder in Q3, owning over 3 million shares.
For those looking for tech stocks other than the obvious and most famous names like Advanced Micro Devices, Inc. (NASDAQ:AMD), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), Viavi Solutions Inc. (NASDAQ:VIAV) is a sound option.
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Disclosure. None. 10 Best Low-Cost Tech Stocks to Buy Right Now is originally published on Insider Monkey.
