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Investors have many options in the broader technology sector to buy for growth with an abundance of opportunity among semiconductor and software companies.
While there are certainly conglomerates as it relates to these equities here are two lesser-known stocks that investors may want to consider adding to their portfolio.
Among semiconductor companies, Allegro MicroSystems is starting to stand out with its stock sporting a Zacks Rank #1 (Strong Buy). Allegro provides integrated circuits (ICs) and application–specific analog power ICs to the automotive and industrial markets.
Allegro’s diverse product portfolio provides solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power-saving technologies for data centers and green energy applications.
Allegro’s earnings estimate revisions have remained higher over the last 30 days. Fiscal year 2023 EPS estimates are up 7% with FY24 estimates up 13%. Allegro’s earnings are expected to soar 63% this year and rise another 5% in FY24 at $1.33 per share. On the top line, sales are forecasted to climb 33% in FY23 and rise another 6% next year to $1.03 billion.
Image Source: Zacks Investment Research
Trading around $45 a share, Allegro stock is up +52% year to date to easily top the S&P 500’s +4% and the Nasdaq’s +8% while also outperforming the Electronics-Semiconductors Markets +20%.
Even better, Allegro stock Is now up a very impressive +157% over the last three years to largely outperform the broader indexes and top its Zacks Subindustry’s +117%.
When it comes to software companies, there are many options as well, with cloud products, solutions, and platforms for a variety of markets. With that being said, Asure Software looks intriguing at the moment and also sports a Zacks Rank #1 (Strong Buy).
Assure Software provides Web-based workforce management solutions that enable organizations to manage their office environment along with human resource and payroll processes.
Notably, earnings estimate revisions have gone up 25% for FY23 over the last 30 days. Asure’s fiscal 2023 earnings are now projected to leap 133% to $0.35 per share compared to EPS of $0.15 in 2022. Plus, FY24 earnings are expected to climb another 27%. Sales are forecasted to jump 10% in FY23 and rise another 10% in FY24 to $116.60 million.
Image Source: Zacks Investment Research
Shares of Asure trade at $14 and are up +51% year to date to largely outperform the broader indexes and the Internet- Delivery Services Markets +3%. More impressive, over the last three years, Asure stock is up +128% to also crush the benchmark, Nasdaq, and its Zacks Subindustry’s +4%.
Image Source: Zacks Investment Research
Bottom Line
Allegro MicroSystems and Asure Software’s top and bottom line growth remain very extractive as both companies have continued to expand over the last few years. The rising earnings estimate revisions are a good sign this growth will continue and that there could be more upside for these tech stocks.
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2 Overlooked Tech Stocks to Buy for Growth
Investors have many options in the broader technology sector to buy for growth with an abundance of opportunity among semiconductor and software companies.
While there are certainly conglomerates as it relates to these equities here are two lesser-known stocks that investors may want to consider adding to their portfolio.
Allegro MicroSystems (ALGM - Free Report)
Among semiconductor companies, Allegro MicroSystems is starting to stand out with its stock sporting a Zacks Rank #1 (Strong Buy). Allegro provides integrated circuits (ICs) and application–specific analog power ICs to the automotive and industrial markets.
Allegro’s diverse product portfolio provides solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power-saving technologies for data centers and green energy applications.
Allegro’s earnings estimate revisions have remained higher over the last 30 days. Fiscal year 2023 EPS estimates are up 7% with FY24 estimates up 13%. Allegro’s earnings are expected to soar 63% this year and rise another 5% in FY24 at $1.33 per share. On the top line, sales are forecasted to climb 33% in FY23 and rise another 6% next year to $1.03 billion.
Image Source: Zacks Investment Research
Trading around $45 a share, Allegro stock is up +52% year to date to easily top the S&P 500’s +4% and the Nasdaq’s +8% while also outperforming the Electronics-Semiconductors Markets +20%.
Even better, Allegro stock Is now up a very impressive +157% over the last three years to largely outperform the broader indexes and top its Zacks Subindustry’s +117%.
Image Source: Zacks Investment Research
Asure Software ((ASUR - Free Report) )
When it comes to software companies, there are many options as well, with cloud products, solutions, and platforms for a variety of markets. With that being said, Asure Software looks intriguing at the moment and also sports a Zacks Rank #1 (Strong Buy).
Assure Software provides Web-based workforce management solutions that enable organizations to manage their office environment along with human resource and payroll processes.
Notably, earnings estimate revisions have gone up 25% for FY23 over the last 30 days. Asure’s fiscal 2023 earnings are now projected to leap 133% to $0.35 per share compared to EPS of $0.15 in 2022. Plus, FY24 earnings are expected to climb another 27%. Sales are forecasted to jump 10% in FY23 and rise another 10% in FY24 to $116.60 million.
Image Source: Zacks Investment Research
Shares of Asure trade at $14 and are up +51% year to date to largely outperform the broader indexes and the Internet- Delivery Services Markets +3%. More impressive, over the last three years, Asure stock is up +128% to also crush the benchmark, Nasdaq, and its Zacks Subindustry’s +4%.
Image Source: Zacks Investment Research
Bottom Line
Allegro MicroSystems and Asure Software’s top and bottom line growth remain very extractive as both companies have continued to expand over the last few years. The rising earnings estimate revisions are a good sign this growth will continue and that there could be more upside for these tech stocks.