Finding the best cheap tech stocks to buy can be a treasure hunt for savvy investors. While the concept of cheap is relative, identifying undervalued companies with strong fundamentals can lead to significant long-term returns.
Undervalued stocks may be experiencing temporary setbacks or exist in overlooked sectors, representing hidden gems waiting to be discovered. They also can be well-known companies that simply don’t get the love they deserve. While no investment is risk-free, these stocks offer a compelling combination of affordability and long-term upside.
Now, here are the top three cheap tech stocks to buy in 2024!
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is a social media giant experiencing hyper-growth for a variety of reasons. The company is set to be a major beneficiary of the AI boom and has a number of exciting growth opportunities in 2024.
Meta, the owner of Facebook, Instagram and WhatsApp continues to attract a massive global audience. Its prowess provides the company with exceptional advertising reach, a primary revenue growth driver. After CEO Mark Zuckerberg closed out 2023 as ‘’the year of efficiency,’’ Meta is planning to ramp up its infrastructure investments into generative AI and the metaverse. Wall Street is particularly excited about its open-source Llama 3 LLM release in July, set to compete directly with Gemini Advanced and GPT4.0. In Q1 FY24, revenue increased 27% year-over-year (YOY) to $36.5 billion. Diluted EPS swelled 114% YOY to $4.71 per share, with operating margin up an astonishing 1,300 bps. That makes Meta stock one of the best cheap tech stocks to buy now.
American Express (AXP)
American Express (NYSE:AXP), a well-known financial giant, has a reputation for catering to affluent customers. However, the company has shifted its strategy in recent years and is catering to the Millenial and Gen Z populations.
American Express has always been in the shadows behind fintech giants like Visa (NYSE:V) and Mastercard (NYSE:MA). Despite the company’s strong financial performance over the last decade, investors have not paid it too much attention. Slowly but surely, that looks to be changing, as AXP has consistently delivered upbeat guidance in recent quarters. In the first quarter of 2024, management’s strong operational excellence drove strong top and bottom-line growth. Revenue increased 11% year-over-year (YOY) to $15.8 billion, with EPS up 39% YOY to $3.33 per share. The Millenial and Gen Z customer accounts grew 60% from the year prior, signaling that the company’s strategy is working. With a forward PE of 18 and strong guidance for FY24, AXP stock is among the top cheap tech stocks to snap up on weakness in Q2.
Payoneer Global (PAYO)
Payoneer Global (NASDAQ:PAYO) specializes in the facilitation of cross-border payments, particularly within the gig economy and e-commerce. The company has experienced steady growth since its IPO in 2021 and hit a key milestone in the 2023 fiscal year.
The globalization of work and the increasing prevalence of remote freelancers is a positive tailwind for Payoneer’s business. The company helps businesses and freelancers manage payments across different countries and currencies, streamlining international transactions. As more businesses seek to outsource talent internationally, Payoneer’s platform will experience a considerable rise in adoption. It achieved a key milestone with its first full year of GAAP profitability as a publicly traded company. In FY23, revenue increased 32% YOY to $831 million. GAAP net income was $93.33 million, or $0.24 per share, compared to a loss of -$0.03 per share in the year prior. With a trailing PE of 21, the stock seems reasonably valued, leaving room for plenty of growth in the years ahead.
On the date of publication, Terel Miles did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
