We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Welcome to Episode #195 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.
Technology stocks are soaring and are again the darlings of Wall Street.
Many are complaining that tech is overvalued and too hot to handle. We know the stocks that are soaring, such as Zoom Video.
But are there any value stocks in the technology sector?
Screening for Tech Values
It’s pretty easy to find technology stocks as you can screen using Zacks Sectors for Computer & Technology.
Adding a Zacks Rank of #1 (Strong Buy) and #2 (Buy) hopefully will provide companies with rising earnings estimates.
To find value, Tracey screened with a P/E under 20.
That screen returned just 29 stocks.
There is value after all.
But to get companies with growth, you can screen with the PEG ratio, instead of the P/E ratio.
This was a much narrower screen which resulted in just 8 companies with value PEG ratios under 1.0.
5 Cheap Tech Stocks Right Now
1. Microchip Technology (MCHP - Free Report) is a leading provider of smart, connected and secure embedded control solutions. On June 2, it updated its financial outlook for the fiscal first quarter which ends on June 31 and said it was seeing better-than-expected sales. It raised its quarterly sales outlook. Shares are up 54% over the last 3 months but are still down 3% on the year. The company is trading with a forward P/E of 18.2.
2. Amkor Technology (AMKR - Free Report) is in outsourced semiconductor packaging and tech services. Earnings are expected to rise 25% in 2020 despite the pandemic. Impressive. Shares are up 71% in the last 3 months but are still down 8.2% year-to-date. It has a forward P/E of 17.6.
3. CommScope (COMM - Free Report) is a global leader in infrastructure solutions for communications networks including broadband. Shares are down 40% year-to-date, although they’re off their coronavirus lows. It’s cheap, with a forward P/E of just 7.3.
4. Dropbox (DBX - Free Report) which operates a global collaboration platform is expected to grow earnings by 52% in 2020 as sales are forecast to jump 13.7%. That’s impressive during a pandemic. It has a PEG ratio of just 0.96. A PEG ratio under 1.0 usually indicates a company is undervalued.
5. Celestica (CLS - Free Report) is a Canadian leader in design, manufacturing and supply chain solutions. It’s a small cap with a market cap of just $826 million. Earnings are expected to rise 14.8% in 2020. Shares have been hot over the last 3 months, soaring 127%. But they still trade with a forward P/E of just 10.7.
What else should you know about finding value in technology stocks?
Tune into this week’s podcast to find out.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
5 Cheap Tech Stocks in 2020
Welcome to Episode #195 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.
Technology stocks are soaring and are again the darlings of Wall Street.
Many are complaining that tech is overvalued and too hot to handle. We know the stocks that are soaring, such as Zoom Video.
But are there any value stocks in the technology sector?
Screening for Tech Values
It’s pretty easy to find technology stocks as you can screen using Zacks Sectors for Computer & Technology.
Adding a Zacks Rank of #1 (Strong Buy) and #2 (Buy) hopefully will provide companies with rising earnings estimates.
To find value, Tracey screened with a P/E under 20.
That screen returned just 29 stocks.
There is value after all.
But to get companies with growth, you can screen with the PEG ratio, instead of the P/E ratio.
This was a much narrower screen which resulted in just 8 companies with value PEG ratios under 1.0.
5 Cheap Tech Stocks Right Now
1. Microchip Technology (MCHP - Free Report) is a leading provider of smart, connected and secure embedded control solutions. On June 2, it updated its financial outlook for the fiscal first quarter which ends on June 31 and said it was seeing better-than-expected sales. It raised its quarterly sales outlook. Shares are up 54% over the last 3 months but are still down 3% on the year. The company is trading with a forward P/E of 18.2.
2. Amkor Technology (AMKR - Free Report) is in outsourced semiconductor packaging and tech services. Earnings are expected to rise 25% in 2020 despite the pandemic. Impressive. Shares are up 71% in the last 3 months but are still down 8.2% year-to-date. It has a forward P/E of 17.6.
3. CommScope (COMM - Free Report) is a global leader in infrastructure solutions for communications networks including broadband. Shares are down 40% year-to-date, although they’re off their coronavirus lows. It’s cheap, with a forward P/E of just 7.3.
4. Dropbox (DBX - Free Report) which operates a global collaboration platform is expected to grow earnings by 52% in 2020 as sales are forecast to jump 13.7%. That’s impressive during a pandemic. It has a PEG ratio of just 0.96. A PEG ratio under 1.0 usually indicates a company is undervalued.
5. Celestica (CLS - Free Report) is a Canadian leader in design, manufacturing and supply chain solutions. It’s a small cap with a market cap of just $826 million. Earnings are expected to rise 14.8% in 2020. Shares have been hot over the last 3 months, soaring 127%. But they still trade with a forward P/E of just 10.7.
What else should you know about finding value in technology stocks?
Tune into this week’s podcast to find out.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>