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Zacks Value Trader Highlights: Ultra Clean, A10 and Axcelis
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For Immediate Release
Chicago, IL – September 11, 2020 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
While it is still tough being a value investor in 2020, as the growth stocks have soared since the March coronavirus sell-off, the recent stock market pull-back has presented a buying opportunity for value investors.
Why not look at the technology sector and see if anything is on sale?
While the big cap technology names soared, and remain expensive, value investors might be able to find opportunities in the small cap tech names as small caps, both value and growth, have lagged.
Could value investors have a chance to get tech exposure at a reasonable valuation?
Screening for Small Cap Technology Stocks
How do you run a comprehensive screen for small cap tech stocks that are values on Zacks.com?
First, look for stocks that are Zacks Rank #1 (Strong Buy) and #2 (Buy) as that likely indicates rising earnings estimates which is a good thing.
Small caps can mean stocks with a market cap under $1 billion, but some people look as large at $2 billion. Or you can choose somewhere in the middle and go with $1.5 billion.
Adding an average volume of at least 100,000 shares a day makes sure there is plenty of trading in the stock, and some interest in it.
For P/E, a value under 15 usually means a company is cheap, especially with the S&P 500 average P/E now over 20.
But since we are looking for tech stocks, and they have rallied, boosting it up to 20 should give you more choices.
On Zacks.com’s screening tool, you can add in the sector, which in this case is Computer & Technology.
Running that screen produced 17 stocks.
3 Small Cap Tech Stocks Now on Sale
1. Ultra Clean Holdings (UCTT - Free Report) provides services, including critical subsystems, to the semiconductor industry. Earnings are expected to soar 165% in 2020 with sales forecast to rise 24%. Over the last month, shares have fallen 31%. It is dirt cheap, with a forward P/E of just 8.4. It’s a Zacks Rank #1 (Strong Buy).
2. A10 Networks (ATEN - Free Report) provides secure application solutions and secures customers’ applications across multi-cloud networks. Earnings are expected to soar 1,133% in 2020 as the Zacks Consensus has jumped to $0.37, up from last year’s earnings of just $0.03. Shares have fallen 17.7% in the last month even though the company said in Q2 that demand remained strong. It, too, is a Zacks Rank #1 (Strong Buy).
3. Axcelis Technologies (ACLS - Free Report) delivers equipment services and process expertise to the semiconductor manufacturers. Earnings are expected to jump 134% in 2020 while analysts estimate sales to soar 34%. Shares have fallen 16% in the last month, giving it a forward P/E of 18.4. And it has the Zacks Rank of #1 (Strong Buy).
Or, if you simply can’t figure out what small caps to buy, another option is to take a look at a small cap ETF that owns a lot of technology companies such as Vanguard’s S&P Small-Cap 600 Growth ETF (VIOG - Free Report) .
What else should you know about finding small cap tech on sale?
Tune into this week’s podcast to find out.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Value Trader Highlights: Ultra Clean, A10 and Axcelis
For Immediate Release
Chicago, IL – September 11, 2020 – Zacks Value Trader is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:
(https://www.zacks.com/stock/news/1056615/3-small-cap-tech-stocks-now-on-sale)
3 Small-Cap Tech Stocks Now on Sale
Welcome to Episode #205 of the Value Investor Podcast.
Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.
While it is still tough being a value investor in 2020, as the growth stocks have soared since the March coronavirus sell-off, the recent stock market pull-back has presented a buying opportunity for value investors.
Why not look at the technology sector and see if anything is on sale?
While the big cap technology names soared, and remain expensive, value investors might be able to find opportunities in the small cap tech names as small caps, both value and growth, have lagged.
Could value investors have a chance to get tech exposure at a reasonable valuation?
Screening for Small Cap Technology Stocks
How do you run a comprehensive screen for small cap tech stocks that are values on Zacks.com?
First, look for stocks that are Zacks Rank #1 (Strong Buy) and #2 (Buy) as that likely indicates rising earnings estimates which is a good thing.
Small caps can mean stocks with a market cap under $1 billion, but some people look as large at $2 billion. Or you can choose somewhere in the middle and go with $1.5 billion.
Adding an average volume of at least 100,000 shares a day makes sure there is plenty of trading in the stock, and some interest in it.
For P/E, a value under 15 usually means a company is cheap, especially with the S&P 500 average P/E now over 20.
But since we are looking for tech stocks, and they have rallied, boosting it up to 20 should give you more choices.
On Zacks.com’s screening tool, you can add in the sector, which in this case is Computer & Technology.
Running that screen produced 17 stocks.
3 Small Cap Tech Stocks Now on Sale
1. Ultra Clean Holdings (UCTT - Free Report) provides services, including critical subsystems, to the semiconductor industry. Earnings are expected to soar 165% in 2020 with sales forecast to rise 24%. Over the last month, shares have fallen 31%. It is dirt cheap, with a forward P/E of just 8.4. It’s a Zacks Rank #1 (Strong Buy).
2. A10 Networks (ATEN - Free Report) provides secure application solutions and secures customers’ applications across multi-cloud networks. Earnings are expected to soar 1,133% in 2020 as the Zacks Consensus has jumped to $0.37, up from last year’s earnings of just $0.03. Shares have fallen 17.7% in the last month even though the company said in Q2 that demand remained strong. It, too, is a Zacks Rank #1 (Strong Buy).
3. Axcelis Technologies (ACLS - Free Report) delivers equipment services and process expertise to the semiconductor manufacturers. Earnings are expected to jump 134% in 2020 while analysts estimate sales to soar 34%. Shares have fallen 16% in the last month, giving it a forward P/E of 18.4. And it has the Zacks Rank of #1 (Strong Buy).
Or, if you simply can’t figure out what small caps to buy, another option is to take a look at a small cap ETF that owns a lot of technology companies such as Vanguard’s S&P Small-Cap 600 Growth ETF (VIOG - Free Report) .
What else should you know about finding small cap tech on sale?
Tune into this week’s podcast to find out.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Click here for your free subscription to Profit from the Pros.
Follow us on Twitter: https://twitter.com/zacksresearch
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.