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3 Tech Stocks Under $10 to Buy Before They Rebound

The COVID-19 pandemic has been a boon to the tech industry as it sped up digital transformation and accelerated tech dependence worldwide amid remote work lifestyles. The tech industry has thrived over this period, driven by sustained demand and increased adoption of advanced technologies such as artificial intelligence (AI), virtual reality (VR), cloud computing, 5G, and more. Furthermore, increased corporate and government spending is expected to benefit the tech industry.

Last month, concerns over the Federal Reserve’s aggressive interest rate hikes, weak corporate earnings of leading tech companies, strict lockdowns in China, and ongoing geopolitical crisis, triggered a brutal sell-off in tech stocks. Moreover, the tech sell-off pushed the tech-heavy Nasdaq Composite to the steepest drop since June 2020, slumping 11.4% over the past month. As a result of the recent tech rout, various high-quality tech stocks are trading at attractive prices.

Given the promising growth attributes, it could be profitable to scoop up low priced tech stocks Rackspace Technology, Inc. (RXT), Extreme Networks, Inc. (EXTR), and Yext, Inc. (YEXT) right now.

Rackspace Technology, Inc. (RXT)

RXT is a multi-cloud technology services company. The company’s multi-cloud services segment offers public and private cloud services and professional services to design and build cloud-native applications and multi-cloud solutions. Its Apps & Cross Platform segment includes managed applications, managed security services, privacy and protection services, and data services.

On April 7, RXT entered a strategic partnership with Cohesity, a leader in data management, to provide multi-cloud managed backup and recovery solutions for RXT customers worldwide. In addition, RXT and Akamai Technologies (AKAM) entered a strategic partnership to deliver global consultative services to customers to help secure their applications and APIs. These partnerships are expected to extend the company’s customer reach and boost revenue streams.

In February, RXT extended its Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS). “This agreement continues the commitment of both companies together to provide a full stack of cloud services to assist customers with becoming cloud-first businesses to accelerate their digital transformation, innovate faster, and create value. With AWS’s renowned customer obsession and the Rackspace Fanatical Experience™, we share a common culture of delivering the right outcomes for our clients,” said Neil Emerson, Chief Commercial Officer at RXT.

In the fiscal 2021 fourth quarter ended December 31, 2021, RXT’s revenue grew 8.5% year-over-year to $777.30 million, while its core revenue improved 10.6% from the year-ago value to $734.10 million. The company’s cash and cash equivalents rose 160.6% year-over-year to $272.80 million for fiscal 2021 (ended December 31). Its total current assets increased 23.3% from the prior year to $989.50 million. In addition, cash inflow from operating activities grew 217.7% year-over-year to $370.80 million.9 “MUST OWN” GROWTH STOCKS

The consensus revenue estimate of $3.26 billion for fiscal 2022 ending December 2022 represents an increase of 8.3% from the previous year. The consensus EPS estimate of $1.14 for fiscal 2023 indicates a 21.3% year-over-year rise. It’s no surprise that RXT has surpassed the consensus EPS estimates in each of the trailing four quarters.

The stock has declined 29.4% year-to-date and 59.2% over the past year and closed Friday’s trading session at $9.79.

RXT’s POWR Ratings reflect this promising outlook. It has an overall grade of B, equating to Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.

RXT has a grade of A for Growth and a B grade for Value. Within the Technology – Communication/Networking industry, it is ranked #9 of 54 stocks.

To see additional POWR Ratings (Stability, Momentum, Quality, and Sentiment) for RXT, click here.

Extreme Networks, Inc. (EXTR)

EXTR is the provider of software-driven networking solutions. The company provides wired and wireless network infrastructure equipment and develops software for network management, analytics, security, and access controls. It offers wired and wireless cloud network management solutions, including ExtremeCloud IQ and ExtremeCloud IQ Site Engine, and ExtremeCloud IQ Essentials. It also provides a cloud-native platform and applications.

Last week, EXTR entered a strategic partnership with Verizon Business to create connectivity and network insight solutions for large venues and stadiums across EMEA. This collaboration will offer extreme solutions for the international market by leveraging Extreme’s Wi-Fi and Wi-Fi Analytics solutions and Verizon’s private 5G solution. It is expected to boost the company’s market reach and revenues.

This March, EXTR announced a partnership with Cradlepoint, a cloud-delivered and LTE wireless network edge solutions leader. Under this partnership…

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