It’d be great if we all had money to buy even one share of Berkshire Hathaway Inc. (NYSE:BRK.B), which, as of March 17, was trading at $506,139. But, alas, there’s reality. You have to twiddle your pennies and hope that you buy “some stuff” that will stand the test of time (and grow, preferably, exponentially!).
Michael Gelband’s Exodus Point launched in 2018 with $8.5 billion in assets. Expectations were high that the former Millennium Management executive would be able to take the skills he had learned at Izzy Englander’s hedge fund and replicate its performance, after a decade of running its fixed income business. The fund looks to be proving Read More
Therefore, you're naturally left with the idea that you can scoop up "the big one" for cheap. Easier said than done, especially if you're not well-versed in fundamental analysis or if you can't dip into Warren Buffett's brain with the right methodology to identify and buy securities priced well below their true value. (Anyone else envy Graham and Dodd's security analysis principles? Can we all agree that they're a pretty good basis for investment decisions?)
Let's walk through some true great tech stocks that have massive potential. (Quick, before everyone else picks up on how awesome they are.)
Why Buy Undervalued Tech Stocks?
Tech stocks have been catapulting downward recently, not to mention that investors have sold tech stocks like crazy. This means you have some major opportunities, especially if you plan to haul these shares around for the long term.
But what does it actually mean to be undervalued? An undervalued company stock is one that is consistently profitable and has burgeoning long-term growth prospects. However, its share price is cheap compared to many of its peers. Undervalued tech stocks can be a real prize for buy-and-hold investors willing to wait for blossoming returns.
Bank of America even reported that mutual funds and hedge funds flimsy on tech outstripped the percentage that were overweight by 10%, the lowest number of tech stocks by a long shot — for years.
Another telling sign: The tech-heavy Nasdaq Composite is down double digit from their high just mere months ago.
Sounds good, right?
Check Out These 3 Great Tech Stocks Under $15
Let's go into the fun details of some stocks you can definitely tap. Sorry to be a broken record, but this way, you can get them before everyone else does!
SEMrush Holdings Inc., at $11.27 to date, offers a big opportunity with a small-cost package. Founded in Boston and with additional offices in Pennsylvania, Texas, the Czech Republic, Cyprus, Poland and Russia, develops an online visibility management software as a service (SaaS) platform. The company helps businesses with their search engine optimization (SEO), pay-per-click, content, social media and competitive research campaigns. With SEMrush, companies can build, manage and measure campaigns across various marketing channels.
SEMrush's 2021 revenue ratcheted up more than 50% year over year and logged more than 82,000 customers as of year-end 2021. SEMrush also completed its successful IPO and grew revenue by more than 50% and added 15,000 paid customers and strong growth.
In Q4, SEMrush saw fourth quarter revenue of $53.7 million, up 47% year over year. It also saw full year 2021 revenue up $188 million, showing upward momentum of more than 50% year-over-year.
However, the company, still in growth stages, saw a net loss of $3.9 million for Q4 and $3.3 million for the full year 2021. It saw a non-GAAP net loss of $2.9 million for Q4 and non-GAAP net loss of $0.5 million for the full year 2021.
Cash flow from operations grew nearly $24 million for full year 2021 and ended the year with cash and cash equivalents of nearly $270 million and zero debt, a major upside.
Hello Group Inc., headquartered in Beijing, China, is a mobile-based social networking platform that includes the Hello mobile application and related features, functionalities, tools and services for users and platform partners. The company offers live video, value added and mobile game services, and at $7.27 as of today's date, it's a decided bargain.
In Q3 2021, net revenues decreased by 0.2% year over year to $583.4 million. Net income decreased to $62.6 million in Q3 2021. Non-GAAP net income decreased to $88.7 million.
Monthly active users had increased 115.5 million in September 2021 from 113.6 million in September 2020.
For the first nine months of 2021, net revenues decreased 2.9% year over year to $1,691.9 million for the first nine months of 2021 and net income was $206.3 million for the first nine months of 2021. Non-GAAP net income was $272.6 million for the first nine months of 2021.
Baozun Inc., at a price of $6.75 per share today, is headquartered in Shanghai, China. It's a holding company that provides brand electronic commerce (e-commerce) services and solutions for apparel and accessories, appliances, electronics, home and furnishings, food and health products, beauty and cosmetics, consumer goods, baby products and insurance and automobiles.
Total net revenues were $1,497.9 million, a decrease of 5.2% year-over-year compared to $304.9 million from last year. Income from operations was $0.6 million. Operating margin was 0.1%, compared with 9% compared to last year.
Non-GAAP income from operations was $11.1 million and non-GAAP operating margin was 2.2%, compared with 10% in the same quarter of last year.
In fiscal year 2021, total net revenues were $1,474.5 million, an increase of 6.2% year-over-year compared to service revenues of $866.6 million, an increase of 11.7%.
Income from operations was RMB7.0 million (US$1.1 million), compared with RMB558.7 million for the fiscal year of 2020. Non-GAAP income from operations was $35.2 million and net loss attributable to ordinary shareholders was $34.5 million.
Scoop Up Winners Now
It's important to identify the downturns when you can and figure out when they'll present best-case scenarios for you to invest. The tech space offers tons of upside potential. Whether you're looking for bargain-level prices or just looking for something in the $100-range, it's possible to find tech stocks worth your while right now.
Before you consider SEMrush, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SEMrush wasn't on the list.
While SEMrush currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.
Article by Melissa Brock, MarketBeat