As a rule, low-priced stocks are considered hazardous. This is the situation with many penny stocks. However, many low-priced stocks are profitable and have promising commercial prospects.
Stocks with single-digit stock prices might contain true jewels for value investors seeking a deal. This is particularly true during a bear market when an increasing number of equities are trading at low prices.
Investors should use care when examining shares with a reduced price tag. Even so, it won’t be wrong to include it in a portfolio.
To help you out, we’ve compiled a list of the top and most affordable tech stocks to purchase now.
Ubiquiti Networks, Inc. (UI)
Ubiquiti provides internet service providers with wireless and network equipment. Profitability and sales have been increasing steadily for the communications equipment manufacturer since 2018.
Over the last five years, UI’s stock has risen 294 percent, but it’s now selling at a 33% discount to its March 2021 high. However, the current reduction in price is in line with historically sound entry positions.
According to analysts, EPS growth is expected to be 35% and an average of 24% each year for the following five years. If this plan becomes a reality, the $15 billion corporation will enjoy much more growth than it has witnessed in previous years.
Since 2014, Ubiquiti has consistently increased its dividend distribution. As a result, there is a 0.9 percent dividend yield at this time.
Smith Micro Software, Inc. (SMSI)
Smith Micro Software, Inc. (SMSI) has had a mixed performance over the last month, with a 3.53 percent drop but a 5.13 percent rebound over the previous week.
SMSI’s investment case is still solid, despite the disappointing results. The company’s SafePath app is expected to be adopted by Tier-1 carriers, resulting in an EPS increase of more than 160 percent next year. In addition, 75 percent of the company’s profits show how well-run the business is.
NetSol Technologies, Inc (NTWK)
In the automotive and banking/finance industries, NetSol Technogies, Inc. (NTWK) produces software. Look at the company’s dashboard, and you’ll see it’s doing well financially. Among them are:
- A P/E multiple of 10.83x.
- A PEG multiple of 0.39x.
- A ratio of 3.70x for the price to free cash flow.
- A book/share value of 4.54.
With a strong balance sheet (current assets surpass current liabilities by 2.30x and minimal debt), investors have confidence in the company’s capacity to weather the storm ahead. According to current estimates, EPS will rise by a healthy 28% over the next five years. In addition, NetSol’s CEO, Najeeb Ghauri, has said that the company expects to expand sales and revenue by 10% in 2022 and recurring revenue by 20% in the same year.
NetSol stock’s current price of $3.18 is a good deal based on these fundamentals and the increased emphasis on the SaaS model.
Palo Alto Networks, Inc
Palo Alto specializes in network security. Among the many services it offers are firewalls for identifying and controlling apps, preventing data breaches, scanning content, and more. Enterprise customers make up more than 80,000 of the company’s clients.
In a press release on July 12, HCL Technologies and Palo Alto Networks announced a new cooperation agreement. A cloud security services platform from HCL Technologies will be integrated with the security solutions of Palo Alto Networks. The partnership’s financial details were kept under wraps.
Arrow Electronics, Inc
Electronic components, distribution, and solutions for business computers are all part of what Arrow Electronics offers its customers. More than 220,000 clients throughout the globe rely on Arrow’s services.
As of July 20, InContinuum Software, a provider of cloud computing management services, has reached a deal with Arrow. InContinuum’s CloudController platform will be integrated with Arrow’s ArrowSphere platform as part of the arrangement, which will be distributed throughout EMEA.