Certain technology companies get all the attention and generate all the media headlines. This fact leaves many companies lurking in the shadows and off the radar screens of investors. This is a sorry state of affairs as it means that investors are missing out on great stocks, a lot of which can be purchased now at bargain prices even as they begin to rise again and post solid returns.
Little-known stocks in the semiconductor, e-commerce, financial technology and cryptocurrency sectors are flying out of most investors’ view. But with a little curiosity and research, some diamonds in the rough can be unearthed. These include some former high-flying stocks that fell on hard times in recent years but are now staging a comeback and ripe for the picking.
Here are three tech stocks flying under the radar but ready to soar 50% higher.
Analog Devices (ADI)
Analog Devices (NASDAQ:ADI) is a semiconductor company that doesn’t get a lot of attention. However, the company just reported better-than-expected earnings and lifted its forward guidance, sending its share price up 9% as a result. Analog Devices announced EPS of $1.40 for what was its fiscal second quarter. That beat analysts’ consensus forecasts of $1.26. Revenue in the period totaled $2.16 billion, which beat expectations for $2.11 billion.
Analog Devices, which makes semiconductors used in data conversion and signal processing, attributed the strong results to rising demand for its automotive and industrial microchips following a prolonged slump coming out of the pandemic. Looking ahead, the company raised its forecast for the current quarter, saying it expects revenue of $2.27 billion, plus or minus $100 million. Analysts had forecast $2.16 billion in fiscal Q3 sales.
ADI stock has gained 140% over the last five years.
Block (SQ)
Financial technology firm Block (NYSE:SQ) is another technology company that’s on the rebound. The company led by founder Jack Dorsey recently reported Q1 financial results that beat Wall Street forecasts on the top and bottom lines, sending its stock up 7% in a single day. SQ stock is now up 72% from a low it reached last year on Halloween. In addition to its digital payments app, Block is also a major holder of Bitcoin (BTC-USD).
For Q1 of this year, Block announced an EPS of 85 cents compared to 72 cents, which was estimated by analysts. The profit more than quadrupled from a year ago. Revenue in the quarter totaled $5.96 billion versus $5.82 billion that was expected on Wall Street. Block said that its Cash App monthly active users reached 24 million at the end of March. Also, the company said that the $220 million it invested in Bitcoin had grown 160% to $573 million at the end of Q1.
Alibaba (BABA)
This technology company is a little riskier. But if you believe that the Chinese economy is going to stage a comeback, then you may want to consider a position in e-commerce giant Alibaba (NYSE:BABA). Despite a struggling economy and years long crackdown on publicly traded tech firms by authorities in Beijing, Alibaba has managed to hold its own. The tech giant recently reported Q1 results that were inline with Wall Street expectations.
Alibaba reported Q1 EPS of 18 cents and revenue of $30.70 billion for what was its fiscal fourth quarter. The profit figure was inline with analyst forecasts and the company’s revenue came in higher than the $30.50 billion that was penciled in. In addition to being China’s leading e-commerce concern, Alibaba is also one of the country’s top AI firms, integrating the technology wherever it can.
Interestingly, BABA stock is one of the few securities that investor Michael Burry of the “Big Short” fame has continued buying in recent quarters. So far in 2024, BABA stock has gained 11%. However, the share price remains down 4% over the last 12 months.
On the date of publication, Joel Baglole did not have (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.
