雅虎香港財經 The 3 Most Undervalued Tech Stocks to Buy in June 2024
With all the tech attention on market movers like Nvidia (NASDAQ:NVDA), Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT), it can seem like tech stocks are too late to get in on. However, one of the beauties of the American economy is the constant innovation its competitive landscape drives. Smaller tech companies are making moves every day, even if the attention they receive seems disproportionately low.
However, these unrecognized and undervalued tech stocks can still significantly boost an investor’s portfolio over time. As with all investing, buying into a position at the right time is exceptionally important. For example, when a stock’s intrinsic value has not been met by its market price, the theoretical upside potential can be the difference between the two, or a further increased trajectory depending on the stock’s popularity.
Thus, investors should not shy away from value tech stocks that may not have the most glamorous or exciting reputation while consistently performing.
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Marathon Digital Holdings (MARA)
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Bitcoin (BTC-USD) mining can be costly and risky. Yet in the case of Marathon Digital Holdings (NASDAQ:MARA), the business model has proven exceptionally lucrative, despite relatively reluctant investor engagement. The company runs and manages its own entirely vertically integrated system for Bitcoin mining; from its firmware to hardware design, and even cooling infrastructure.
This allows MARA to efficiently extract and store a large amount of bitcoin in its corporate treasury. The catch, however, is that this treasury relies on market interest in Bitcoin, to be high enough to translate to a generous cash amount. Despite this risk, as of right now, MARA commands an attractive price-to-earnings ratio of 14.49x and a price-to-book ratio of 3.53x.
These metrics suggest the stock is undervalued compared to the broader crypto technology sector. Thus, for investors seeking undervalued tech stocks to get in on, MARA could be a solid pick so long as Bitcoin stays relevant.
Concentrix (CNXC)
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As a technological services company, Concentrix (NASDAQ:CNXC) maintains a broad array of customers through which it has been able to grow its financial stability. The company recently reported an impressive revenue increase of 46.83% year-over-year (YOY) for its Q1 earnings report. This brought it to quarterly revenue of $2.4 billion but disappeared behind a 62.37% increase YOY in operating expenses, which cost $678 million and brought net income down to $52 million for the quarter.
The result? Despite stunning revenue growth, the company’s stock has been on a gentle discount trajectory. The stock is down roughly 37% year-to-date and may tumble further before its next earnings report. However, this dip in share value is not representative of the company’s growth and influence, as it recently debuted on the Fortune 500 list in 499th place.
The company continues to excel at expanding its service categories, from customer relations to information technology consulting, and will likely continue to grow revenue through the second half of 2024.
Telesat (TSAT)
As a company focused on communications infrastructure based in space, Telesat (NASDAQ:TSAT) will see its share of ups and downs over the years. That’s simply a reality of the costly process of producing satellites for geosynchronous and low Earth orbits that are at consistent risk from debris. Moreover, the company has seen a slowdown in revenue growth, with anticipated declines priced in for 2024.
The value proposition for Telesat is in its future networks, however. Once its broadband satellite coverage is completely operational, the company can take advantage of a rapidly growing subsection of telecommunications and internet provision. This will open revenue streams for internet infrastructure in many of the more remote and underdeveloped regions of the world where people live but do not have easy internet access.
Thus, TSAT could be undervalued for its prospects, especially considering its price-to-earnings ratio of 1.36x and price-to-book of 0.26x.
On the date of publication, Viktor Zarev 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.
Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.
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