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4 Cheap Tech Stocks to Buy in January

4 Cheap Tech Stocks to Buy in January

Posted On January 14, 2022 2:32 pm
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Inflation hit a record high in December. In addition, Economist Leslie Preston of TD Economics said, “After reaching new highs core inflation is likely to get even higher in the first quarter of 2022 on a year-on-year basis.” This is expected to stunt the performance of overvalued tech stocks as the Fed looks ahead to raise interest rates this year. However, the overall tech industry is projected to grow significantly with the digitization and remote working trends.

ETF Trends CEO Tom Lydon recently stated, “Value stocks in particular likely have more room to run.” Also, most experts believe cheap tech stocks might outperform the rest in the near term. According to Silicon Valley legend John Chambers, “Overall, tech is still a great opportunity” to invest.

Given this backdrop, we think it could be wise to add fundamentally sound yet cheap tech stocks Dell Technologies Inc. (DELL – Get Rating), Hewlett Packard Enterprise Company (HPE – Get Rating), LG Display Co., Ltd. (LPL – Get Rating), and NetScout Systems, Inc. (NTCT – Get Rating) to one’s portfolio now. These stocks have an overall Strong Buy or Buy rating in our POWR Ratings system. Moreover, they have an A grade for Value.

Dell Technologies Inc. (DELL – Get Rating)

Round Rock, Tex.-based DELL designs, develops, manufactures, markets, sells, and supports Information technology solutions, products, and services worldwide. The company’s segments include its Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).

On Nov. 23, 2021, Chuck Whitten, the company’s co-chief operating officer, said, “We are uniquely positioned in the data era, with durable advantages and market-leading positions. Our strategy is focused on growing our core business and in adjacent multi-billion-dollar markets, including multi-cloud, edge, telecom and as-a-Service.”

DELL’s total net revenue increased 20.9% year-over-year to $28.39 billion for its fiscal 2022 third quarter, ended Oct. 29, 2021. The company’s gross margin increased 11% year-over-year to $8.06 billion, while its net income came in at $3.89 billion, up 341.3% year-over-year. Also, its non-GAAP EPS was $2.37, up 16.7% year-over-year.

DELL’s 0.74x forward EV/S is 81.9% lower than the 4.07x industry average Its 0.43x forward P/S is also 89.2% lower than the 3.99x industry average.

Analysts expect DELL’s revenue to be $105.20 billion in its fiscal 2022, representing an 11.5% year-over-year rise. The company’s EPS is expected to increase 3% year-over-year to $8.24 in fiscal 2022. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters. The stock has gained 4.1% in price over the past month to close yesterday’s trading session at $59.95.

DELL’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, which equates to a Buy in our POWR Ratings system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

Also, the stock has an A grade for Value and a B grade for Sentiment. It is ranked #8 of 49 stocks in the B-Rated Technology – Hardware industry. Click here to see the additional POWR Ratings for Growth, Momentum, Stability, and Quality for DELL.

Hewlett Packard Enterprise Company (HPE – Get Rating)

HPE provides solutions that allow customers to seamlessly capture, analyze, and act upon data in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. HPE delivers unique, open, and intelligent technology solutions as a service.  HPE is headquartered in Palo Alto, Calif.

On Nov.30, 2021, Tarek Robbiati, EVP and CFO of HPE, said, “The demand environment has been incredibly strong and

, the overall tech industry is projected to grow significantly with the digitization and remote working trends.

ETF Trends CEO Tom Lydon recently stated, “Value stocks in particular likely have more room to run.” Also, most experts believe cheap tech stocks might outperform the rest in the near term. According to Silicon Valley legend John Chambers, “Overall, tech is still a great opportunity” to invest.

Given this backdrop, we think it could be wise to add fundamentally sound yet cheap tech stocks Dell Technologies Inc. (DELL – Get Rating), Hewlett Packard Enterprise Company (HPE – Get Rating), LG Display Co., Ltd. (LPL – Get Rating), and NetScout Systems, Inc. (NTCT – Get Rating) to one’s portfolio now. These stocks have an overall Strong Buy or Buy rating in our POWR Ratings system. Moreover, they have an A grade for Value.

Dell Technologies Inc. (DELL – Get Rating)

Round Rock, Tex.-based DELL designs, develops, manufactures, markets, sells, and supports Information technology solutions, products, and services worldwide. The company’s segments include its Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG).

On Nov. 23, 2021, Chuck Whitten, the company’s co-chief operating officer, said, “We are uniquely positioned in the data era, with durable advantages and market-leading positions. Our strategy is focused on growing our core business and in adjacent multi-billion-dollar markets, including multi-cloud, edge, telecom and as-a-Service.”

DELL’s total net revenue increased 20.9% year-over-year to $28.39 billion for its fiscal 2022 third quarter, ended Oct. 29, 2021. The company’s gross margin increased 11% year-over-year to $8.06 billion, while its net income came in at $3.89 billion, up 341.3% year-over-year. Also, its non-GAAP EPS was $2.37, up 16.7% year-over-year.

DELL’s 0.74x forward EV/S is 81.9% lower than the 4.07x industry average Its 0.43x forward P/S is also 89.2% lower than the 3.99x industry average.

Analysts expect DELL’s revenue to be $105.20 billion in its fiscal 2022, representing an 11.5% year-over-year rise. The company’s EPS is expected to increase 3% year-over-year to $8.24 in fiscal 2022. In addition, it surpassed the consensus EPS estimates in each of the trailing four quarters. The stock has gained 4.1% in price over the past month to close yesterday’s trading session at $59.95.

DELL’s POWR Ratings reflect this promising outlook. The stock has an overall B rating, which equates to a Buy in our POWR Ratings system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.

Also, the stock has an A grade for Value and a B grade for Sentiment. It is ranked #8 of 49 stocks in the B-Rated Technology – Hardware industry. Click here to see the additional POWR Ratings for Growth, Momentum, Stability, and Quality for DELL.

Hewlett Packard Enterprise Company (HPE – Get Rating)

HPE provides solutions that allow customers to seamlessly capture, analyze, and act upon data in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. HPE delivers unique, open, and intelligent technology solutions as a service.  HPE is headquartered in Palo Alto, Calif.

On Nov.30, 2021, Tarek Robbiati, EVP and CFO of HPE, said, “The demand environment has been incredibly strong and…

 

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