In this article, we will take a look at the 10 best tech stocks to buy right now under $10. You can skip our comprehensive analysis of these stocks and go directly to the 5 Best Tech Stocks to Buy Right Now Under $10.
Technology firms have witnessed explosive growth over the past few years as internet penetration and cheap, mass produced electronic devices transform the everyday lives of individuals. Statistics from the United States Bureau of Labor Statistics show a huge decline in price of computers, televisions, and related devices over the past two decades. Between 1997 and 2015, the Consumer Price Index for personal computers and peripheral equipment declined 96 percent. The increasing internet and computing penetration would boost the technology industry in the coming years.
Most of the decline in the price of computing devices occurred at the turn of the millennium as the dotcom boom rocked the finance world. Since technology hardware was getting cheaper, the technology-related services sector started taking off. In the years since, online shopping giant Amazon.com, Inc. (NASDAQ: AMZN) has emerged as a disruptor in the retail sector, Apple Inc. (NASDAQ: AAPL) has morphed into the biggest company in the world, and Facebook, Inc. (NASDAQ: FB) has become the home away from home for almost half the globe.
Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Facebook, Inc. (NASDAQ: FB), along with two other tech giants, now account for more than 20% of the S&P 500. They have become literally too big to fail. Their share price trades in the hundreds or thousands, and for many average investors, these ships have sailed. However, for those looking to capitalize on changing market dynamics, there are several cheaper options that offer value for money in the tech sector and are stable enough to be a good long term investment.
Nokia Corporation (NYSE: NOK), a Finnish firm once popular for making mobile phones, is now one of the leading 5G internet technology providers in the world. Since 5G offers limitless potential for growth in several sectors of the economy, there is a sound reason to bet big on Nokia Corporation (NYSE: NOK) stock that is trading well below $10 right now. Nokia Corporation (NYSE: NOK) has been around for more than a century and a half, and has time and again proved itself capable of navigating through different business conditions.
United Microelectronics Corporation (NYSE: UMC), a Chinese semiconductor manufacturer, could be a good short to mid-term bet. A global shortage of semiconductor chips on the back of supply chain issues related to the COVID-19 pandemic and increased demand as lockdown restrictions ease have sent chip makers into overdrive. United Microelectronics Corporation (NYSE: UMC) stands to benefit from the chip shortage that analysts have warned could lead to an increase in the price of tech items and may last for several months. This makes UMC one of the best tech stocks to buy right now under $10.
There is also a booming business in the Internet of Things (IoT) and cybersecurity. BlackBerry Limited (NYSE: BB), a Canadian firm that specializes in these market segments, has quietly grown in the past few years as privacy concerns and the sheer amount of electronic devices around individuals force a fundamental rethink of digital priorities. BlackBerry Limited (NYSE: BB), a sound option in the list of best tech stocks to buy right now under $10, has even won a government contract to encrypt sensitive communications. Under the deal, public servants in Canada will use Blackberry software for digital correspondences.
Technology companies have caused massive changes in the finance world as well. The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of 10 best tech stocks to buy right now under $10.
Best Tech Stocks to Buy Under $10
10. Net Element, Inc. (NASDAQ: NETE)
Number of Hedge Fund Holders: 4
Price as of May 6, 2021: $9.58 per share
Net Element, Inc. (NASDAQ: NETE) is a Florida-based financial technology firm. It was founded in 2010 and is placed tenth on our list of 10 best tech stocks to buy right now under $10. The company concentrates on the development of mobile payment solutions. It operates in North America, Russia, and some Commonwealth states. The firm has returned more than 331% to investors over the past year. It has a market cap of more than $50 million and posted more than $60 million in annual revenue in 2020.
On March 11, Net Element, Inc. (NASDAQ: NETE) and electric vehicle maker Mullen Technologies announced that they had executed an agreement to purchase an EV manufacturing facility in Mississippi. Like Nokia Corporation (NYSE: NOK) and BlackBerry Limited (NYSE: BB), NETE is one of the best cheap tech stocks to buy.
At the end of the fourth quarter of 2020, 4 hedge funds in the database of Insider Monkey held stakes worth $1.7 million in the firm, up from 2 the preceding quarter worth $1.4 million.
9. Conduent Incorporated (NASDAQ: CNDT)
Number of Hedge Fund Holders: 17
Price as of May 6, 2021: $7.31 per share
Conduent Incorporated (NASDAQ: CNDT) is a New Jersey-based business process services company. It was founded in 2016 and is placed ninth on our list of 10 best tech stocks to buy right now under $10. It has operations in 40 countries and employs more than 60,000 people across the world. The firm focuses on offering transaction-intensive processing, analytics, and automation to business owners. Conduent has returned more than 226% to investors over the course of the past twelve months.
On March 5, Conduent Incorporated (NASDAQ: CNDT) posted earnings results for the first three months of 2021, reporting a revenue of over $1 billion, beating market estimates by $10 million but still a little below the revenue for the same period last year. It also posted $0.15 in earnings per share, beating predictions by $0.04.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Icahn Capital LP is a leading shareholder in the firm with 38.1 million shares worth more than $183 million.
“During the 1st quarter, White Brook built a position in Conduent. Conduent operates in three divisions: Commercial, Government Services, and Transportation. The Government Services and Commercial divisions perform similar call center, processing, and administrative services. The Transportation segment also runs tollways and traffic ticketing systems. Their services are necessary, but typically non-core to their customers and can be done more cheaply by a scaled player like Conduent than could be done in house. The services are also unlikely to drive a customer’s purchase decision although they significantly impact the customer’s experience. Potential customers want someone with experience, that will do the job well, and don’t want to think too much about it. Larger enterprises also need a provider that has the resources to scale as necessary (product launch) and monitor their employees. This is the business process outsourcing industry of which Conduent is amongst the largest.
Five years ago I would not have considered Conduent a potential investment candidate, ten years ago I wrote off investors for even suggesting it (Xerox). The Company was birthed by Xerox in December of 2016 by spinning assets from legacy Xerox and recently acquired Affiliated Computer Systems. After becoming public at ~$15 per share, the stock traded to $23 by the end of 2018 before beelining to a Covid low of ~$2. During that time, the Company went through multiple chief executives and Board
Chairmen and a fight with largest shareholder Carl Icahn that included a burn it all down letter from a board member in April 2019 alleging board malfeasance. That move ultimately resulted in Cliff Skelton’s appointment to interim CEO, and his permanent appointment in February of 2020.
The corporate chaos was reflected internally as the company lost major contracts, was accused of bribery, and both customer and employee satisfaction deteriorated prior to Skelton’s appointment. Since, a culture change has occurred at the Company. Overall employee satisfaction has improved significantly. With increased satisfaction, employee retention has improved, resulting in improved relationships with clients and an improvement in customer churn. After years of losing business, the company is finally growing early indicators of revenue with new business signings and total contract values of new business growing. As a further sign of the different approach, customers that previously terminated relationships with Conduent due to non performance have not only reopened doors but awarded contracts to Conduent. From a financial analyst’s perspective, the Company more routinely meets or exceeds earnings expectations. There’s still more work to do, and the recovery is likely to be uneven, but Conduent has already turned around. As large contract losses under previous management finally roll off that will become evident to the uninterested as well.
There are additional tailwinds as well:
● There’s potential for an accretive sale of one or more of its business lines. The Company engaged in a review of its businesses when Skelton became CEO pre-pandemic, but any subsequent process was cut short as global business activity deteriorated.
● The Company should be a beneficiary of a return to work, whether that be via processing toll and ticket fees or providing support for insurance carriers – bouying near and medium term results.
● There’s potential opportunity in keeping some of the workforce at home and rationalizing real estate. Employees on message boards seem to like the experience of working from home over working in a call center even over a year later. The industry as a whole could have a permanently lower cost base. It remains to be seen whether those savings would be passed on to the customer, but if so, it then expands the market and opens their services to a smaller business.
● Finally, during the quarter, management voted with their own dollars, buying a modest amount of stock in the open market at a time when most management teams are selling a portion of their holdings.
The Company trades at a double digit free cash flow yield and less than 6x next year’s EBITDA – an appropriate multiple for a melting ice cube, but not a company that grows. I am excited by what the future holds for our investment in Conduent.”
8. Amtech Systems, Inc. (NASDAQ: ASYS)
Number of Hedge Fund Holders: 7
Price as of May 6, 2021: $10.00 per share
Amtech Systems, Inc. (NASDAQ: ASYS) is an Arizona-based firm that makes and sells equipment for the semiconductor and automotive industries. The firm markets solder reflow ovens, diffusion furnaces, high-temp belt furnaces, silicon wafers, sapphire substrates, silicon carbide wafers, and various glass and silica components. Amtech stock has returned more than 93% to investors over the past year. The company has a market cap of more than $143 million and posted more than $65 million in annual revenue in 2020. The stock ranks 8th in the list of best tech stocks to buy right now under $10.
On May 5, Amtech Systems, Inc. (NASDAQ: ASYS) reported more than $19 million in revenue for the first three months of 2021, a 36% increase from the same period last year. The revenue figure beat market estimates by over $1 million.
Like Nokia Corporation (NYSE: NOK) and BlackBerry Limited (NYSE: BB), ASYS is one of the best cheap tech stocks to buy.
At the end of the fourth quarter of 2020, 7 hedge funds in the database of Insider Monkey held stakes worth $14.4 million in the firm, the same as in the preceding quarter worth $11.3 million.
7. Infinera Corporation (NASDAQ: INFN)
Number of Hedge Fund Holders: 21
Price as of May 6, 2021: $8.68 per share
Infinera Corporation (NASDAQ: INFN) is a California-based company that markets optical transport networking equipment, software, and services. It was founded in 2000 and is placed seventh on our list of 10 best tech stocks to buy right now under $10. Infinera stock has returned more than 43% to investors in the past twelve months. The products made by the company service telecommunications service providers, cable providers, wholesale carriers, education institutions, and government entities.
Infinera Corporation (NASDAQ: INFN) announced quarterly results for the first three months of 2021 earlier in May, posting more than $331 million in revenue, beating market predictions by $0.4 million and up 0.2% compared to the same period last year.
Like BlackBerry Limited (NYSE: BB) and Nokia Corporation (NYSE: NOK), INFN is a cheap technology stock to buy now.
Out of the hedge funds being tracked by Insider Monkey, California-based investment firm Oaktree Capital Management is a leading shareholder in the firm with 25.1 million shares worth more than $263 million.
6. SemiLEDs Corporation (NASDAQ: LEDS)
Number of Hedge Fund Holders: 1
Price as of May 5, 2021: $5.50 per share
SemiLEDs Corporation (NASDAQ: LEDS) is a China-based company founded in 2005. It is placed sixth on our list of 10 best tech stocks to buy right now under $10. The firm markets light emitting diode chips and other LED-related products in several countries, including technology hubs like the United States, Germany, and Japan. The company stock has returned about 400% to investors over the past year. It has a market cap of over $24 million and posted more than $6 million in annual revenue in 2020.
Unlike Amazon.com, Inc. (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), and Facebook, Inc. (NASDAQ: FB), LEDS is an affordable way to ride the tech boom.
On April 8, SemiLEDs Corporation (NASDAQ: LEDS) reported earrings for the second fiscal quarter, posting more than $1.2 million in revenue, an increase of more than 68% compared to the same period last year.
At the end of the fourth quarter of 2020, 1 hedge fund in the database of Insider Monkey held stakes worth $762,000 in the firm, the same as in the previous quarter worth $585,000.
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Disclosure: None. 10 Best Tech Stocks to Buy Right Now Under $10 is originally published on Insider Monkey.