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3 Tech Stocks Under $10 to Boost Your Portfolio in 2024
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The broader equity market is poised to close on a high note in 2023. The S&P 500 Index has returned more than 20% year to date, while the Dow Jones Industrial Average and the Nasdaq Composite have risen 13% and 42%, respectively, over the same period.
Tech-focused exchange-traded fund, Technology Select Sector SPDR ETF (XLK), has jumped 52.4% year to date, giving way to a sharp rebound in 2023 and slow yet steady growth in 2024 as companies continue to protect profitability after a massive sell-off in 2022 on recession concerns, inflationary pressure, increased oil prices and higher interest rates.
Though the latest Summary of Economic Projections doesn’t indicate a recession for the U.S. economy, the growth rate will still slow down to 1.4% in 2024. For 2023, the U.S. economy is anticipated to grow 2.6%.
The latest forecast for worldwide IT spending by Gartner indicates bright prospects for tech stocks in the near term. Despite the ongoing macroeconomic and geopolitical challenges, the independent research firm forecasts worldwide IT spending to increase 8% year over year to $5.1 trillion in 2024.
The sector’s upside in 2024 is likely to be driven by the impressive long-term growth prospects of tech companies, including Audioeye (AEYE - Free Report) , Arlo Technologies (ARLO - Free Report) and Crexendo (CXDO - Free Report) , owing to continuous digital transformations. The rapid adoption of cloud computing and the ongoing integration of AI and machine learning are expected to be major growth drivers in 2024.
Growing demand to modernize workflow across industries is expected to drive the demand for generative AI applications such as Microsoft-backed OpenAI’s ChatGPT, Anthropic’s Claude, Google’s Bard and its latest Gemini Pro for enterprises.
Moreover, the growing demand for e-commerce, contactless delivery through drones and digital payment highlights the urgency for accelerated 5G network development.
Meanwhile, blockchain, IoT, smartphones, autonomous vehicles, storage solutions, AR/VR and wearables, networking and connectivity solutions — including Wi-Fi as well as Wi-Fi/Bluetooth integrated SOCs — and the need for high-speed data in both communications networks and data centers offer significant growth opportunities.
Our Picks
Per the Zacks proprietary methodology, stocks with the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer solid investment opportunities. The Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
Based on this, here we pick three technology stocks currently trading for less than $10 a share that have strong fundamentals and are well-poised for growth in 2024.
While these stocks trade under $10 and can be more volatile than their costlier peers, strong bottom-line projections and positive estimate revisions in recent times point toward strong momentum in the near term.
The chart below shows the price performance of the three stocks year to date.
Year-to-Date Performance
Image Source: Zacks Investment Research
AudioEye engages in creating cloud-based cross-platform/cross-browser screen reader solution for web browsing. Rapid uptick in the company’s voice-driven technologies to facilitate mobility and usability of Internet-based content through content publication and distribution software is expected to drive revenues in the near term.
AudioEye’s strength in web accessibility and monitoring solutions across the Internet, print, broadcast and other media is likely to aid top-line growth in 2024. The company is expanding its offerings with new capabilities and solutions, including the Enterprise Accessibility Maturity, Accessibility Health Advisor and AI-driven Automation and Expert Audits. Expanding clientele of government agencies and schools is another positive.
The stock is currently priced at $4.10 and has a Growth Score of A. The Zacks Consensus Estimate for this currently Zacks Rank #2 company’s 2024 earnings has moved north 62.5% to 13 cents per share in the past 60 days.
Arlo Technologies offers product design, wireless connectivity, cloud infrastructure and cutting-edge AI capabilities that focus on delivering a seamless, smart home experience. ARLO’s cloud-based platform provides users visibility, insight and a powerful means to help protect and connect in real-time. ARLO’s connected devices include wire-free smart Wi-Fi and LTE-enabled cameras, advanced baby monitors and smart security lights.
The company’s expanding portfolio of products and services has been acting as a key catalyst. Arlo Total Security, a comprehensive subscription service offering 24/7 professional monitoring and security hardware at affordable monthly prices and no upfront costs, is expected to pick up demand in the near term. ARLO’s expanding partner base has been acting as a tailwind.
The stock is currently priced at $9.33 and has a Growth Score of A. The consensus estimate for this currently Zacks Rank #2 company’s 2024 earnings has moved north 7.9% to 41 cents per share in the past 60 days.
Crexendo is a provider of Unified Communications as a Service, Call Center as a Service, communication platform software solutions and collaboration services designed to provide enterprise-class cloud communication solutions to any business through its business partners, agents and direct channels. Crexendo's recent introduction of its API 2.0 solidifies its position in cloud communication with innovative CPaaS capabilities and advanced AI features.
The company recently achieved a milestone with its cloud communication platform user base exceeding 4 million globally. This remarkable growth follows Crexendo's strategic acquisition of the NetSapiens platform in June 2021, which initially served 1.7 million users. Fueled by the addition of new licensees and robust growth within its existing network of more than 220 licensees, Crexendo continues to thrive.
The stock is currently priced at $4.03 and has a Growth Score of A. The Zacks Consensus Estimate for this currently Zacks Rank #2 company’s 2024 earnings has moved north 23.5% to 21 cents per share in the past 60 days.
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3 Tech Stocks Under $10 to Boost Your Portfolio in 2024
The broader equity market is poised to close on a high note in 2023. The S&P 500 Index has returned more than 20% year to date, while the Dow Jones Industrial Average and the Nasdaq Composite have risen 13% and 42%, respectively, over the same period.
Tech-focused exchange-traded fund, Technology Select Sector SPDR ETF (XLK), has jumped 52.4% year to date, giving way to a sharp rebound in 2023 and slow yet steady growth in 2024 as companies continue to protect profitability after a massive sell-off in 2022 on recession concerns, inflationary pressure, increased oil prices and higher interest rates.
Though the latest Summary of Economic Projections doesn’t indicate a recession for the U.S. economy, the growth rate will still slow down to 1.4% in 2024. For 2023, the U.S. economy is anticipated to grow 2.6%.
The latest forecast for worldwide IT spending by Gartner indicates bright prospects for tech stocks in the near term. Despite the ongoing macroeconomic and geopolitical challenges, the independent research firm forecasts worldwide IT spending to increase 8% year over year to $5.1 trillion in 2024.
The sector’s upside in 2024 is likely to be driven by the impressive long-term growth prospects of tech companies, including Audioeye (AEYE - Free Report) , Arlo Technologies (ARLO - Free Report) and Crexendo (CXDO - Free Report) , owing to continuous digital transformations. The rapid adoption of cloud computing and the ongoing integration of AI and machine learning are expected to be major growth drivers in 2024.
Growing demand to modernize workflow across industries is expected to drive the demand for generative AI applications such as Microsoft-backed OpenAI’s ChatGPT, Anthropic’s Claude, Google’s Bard and its latest Gemini Pro for enterprises.
Moreover, the growing demand for e-commerce, contactless delivery through drones and digital payment highlights the urgency for accelerated 5G network development.
Meanwhile, blockchain, IoT, smartphones, autonomous vehicles, storage solutions, AR/VR and wearables, networking and connectivity solutions — including Wi-Fi as well as Wi-Fi/Bluetooth integrated SOCs — and the need for high-speed data in both communications networks and data centers offer significant growth opportunities.
Our Picks
Per the Zacks proprietary methodology, stocks with the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy) offer solid investment opportunities. The Growth Style Score condenses all the essential metrics from a company’s financial statements to get a true sense of the quality and sustainability of its growth. You can see the complete list of today’s Zacks #1 Rank stocks here.
Based on this, here we pick three technology stocks currently trading for less than $10 a share that have strong fundamentals and are well-poised for growth in 2024.
While these stocks trade under $10 and can be more volatile than their costlier peers, strong bottom-line projections and positive estimate revisions in recent times point toward strong momentum in the near term.
The chart below shows the price performance of the three stocks year to date.
Year-to-Date Performance
Image Source: Zacks Investment Research
AudioEye engages in creating cloud-based cross-platform/cross-browser screen reader solution for web browsing. Rapid uptick in the company’s voice-driven technologies to facilitate mobility and usability of Internet-based content through content publication and distribution software is expected to drive revenues in the near term.
AudioEye’s strength in web accessibility and monitoring solutions across the Internet, print, broadcast and other media is likely to aid top-line growth in 2024. The company is expanding its offerings with new capabilities and solutions, including the Enterprise Accessibility Maturity, Accessibility Health Advisor and AI-driven Automation and Expert Audits. Expanding clientele of government agencies and schools is another positive.
The stock is currently priced at $4.10 and has a Growth Score of A. The Zacks Consensus Estimate for this currently Zacks Rank #2 company’s 2024 earnings has moved north 62.5% to 13 cents per share in the past 60 days.
Arlo Technologies offers product design, wireless connectivity, cloud infrastructure and cutting-edge AI capabilities that focus on delivering a seamless, smart home experience. ARLO’s cloud-based platform provides users visibility, insight and a powerful means to help protect and connect in real-time. ARLO’s connected devices include wire-free smart Wi-Fi and LTE-enabled cameras, advanced baby monitors and smart security lights.
The company’s expanding portfolio of products and services has been acting as a key catalyst. Arlo Total Security, a comprehensive subscription service offering 24/7 professional monitoring and security hardware at affordable monthly prices and no upfront costs, is expected to pick up demand in the near term. ARLO’s expanding partner base has been acting as a tailwind.
The stock is currently priced at $9.33 and has a Growth Score of A. The consensus estimate for this currently Zacks Rank #2 company’s 2024 earnings has moved north 7.9% to 41 cents per share in the past 60 days.
Crexendo is a provider of Unified Communications as a Service, Call Center as a Service, communication platform software solutions and collaboration services designed to provide enterprise-class cloud communication solutions to any business through its business partners, agents and direct channels. Crexendo's recent introduction of its API 2.0 solidifies its position in cloud communication with innovative CPaaS capabilities and advanced AI features.
The company recently achieved a milestone with its cloud communication platform user base exceeding 4 million globally. This remarkable growth follows Crexendo's strategic acquisition of the NetSapiens platform in June 2021, which initially served 1.7 million users. Fueled by the addition of new licensees and robust growth within its existing network of more than 220 licensees, Crexendo continues to thrive.
The stock is currently priced at $4.03 and has a Growth Score of A. The Zacks Consensus Estimate for this currently Zacks Rank #2 company’s 2024 earnings has moved north 23.5% to 21 cents per share in the past 60 days.