In this article, we discuss the 5 best low-cost tech stocks to buy right now. If you want to read our detailed analysis of the tech sector and its future potential growth, go directly to read 10 Best Low-Cost Tech Stocks to Buy Right Now.
5. Amkor Technology, Inc. (NASDAQ:AMKR)
Number of Hedge Fund Holders: 25
Share Price as of November 26: $22.23
Amkor Technology, Inc. (NASDAQ:AMKR) is an American semiconductor products company that also provides packaging and test services to consumers. The number of hedge funds tracked by Insider Monkey having stakes in the company grew to 25 in Q3, from 19 in the previous quarter. These stakes have a consolidated value of $208.3 million, up significantly from $154.5 million in Q2.
Since the start of 2021, Amkor Technology, Inc. (NASDAQ:AMKR) delivered a 49.09% return to shareholders, while its 12-month returns came in at 50.81%. Credit Suisse, in October, set a $27 price target on this Arizona-based company, while keeping a Neutral rating on the shares.
In Q3, Amkor Technology, Inc. (NASDAQ:AMKR) earned $1.68 billion in revenues, presenting a 24.4% year-over-year growth. With 2.4 million shares, SW Investment Management was the company’s largest shareholder in Q3.
4. GoodRx Holdings, Inc. (NASDAQ:GDRX)
Number of Hedge Fund Holders: 26
Share Price as of November 26: $36.82
GoodRx Holdings, Inc. (NASDAQ:GDRX) is a modern tech company that operates a telemedicine platform. Recently, the company was picked by UBS as one of its best stocks in the Healthtech sector. The firm expects a 30% growth in the company’s core prescription drug business in the next three years.
In Q3, GoodRx Holdings, Inc. (NASDAQ:GDRX) reported $195.1 million in revenue, beating the estimates by $0.55 million. Following the company’s strong revenue, Barclays lifted its price target on the stock to $47, while maintaining an Overweight rating on the shares.
At the end of Q3, 26 hedge funds in Insider Monkey’s database reported owning stakes in GoodRx Holdings, Inc. (NASDAQ:GDRX), down from 28 in the previous quarter. The total value of these stakes is over $1 billion, compared with $635.9 million in Q2 2021.
Baron Funds mentioned GoodRx Holdings, Inc. (NASDAQ:GDRX) in its Q3 2021 investor letter. Here is what the asset management firm has to say:
“We initiated a position in GoodRx Holdings, Inc., a leading consumerfocused digital health care platform. The company’s core offering is a free App that provides consumers with access to discounts on prescription medications. This increases medication adherence since GoodRx’s discounted prices enable consumers to afford to fill their prescriptions, resulting in better health care outcomes and lower costs to the health care system. GoodRx generates revenue each time the consumer uses the GoodRx discount card for a new or refilled prescription. As GoodRx attracts more consumers to its platform, the company increases its scale, which enables it to negotiate lower prices, which attracts more consumers. GoodRx has a growing subscription business where consumers pay monthly subscription fees to access even lower drug prices. The subscription business increases GoodRx’s revenue visibility and customer lifetime value. GoodRx has a strong brand with exceptionally high Net Promoter Scores among consumers and health care providers. With 20 million monthly visitors, GoodRx has a valuable platform that it is monetizing by adding new products and services. Recent examples include its telehealth offering, pharmaceutical manufacturer solutions business, and proprietary health care content, which should help solidify GoodRx’s positioning as the go-to health care platform for consumers. GoodRx is profitable and growing rapidly with strong margins and cash flows.”
3. Corning Incorporated (NYSE:GLW)
Number of Hedge Fund Holders: 40
Share Price as of November 26: $38.77
Corning Incorporated (NYSE:GLW) is an American technology company that deals in advanced optics for industrial and scientific applications. With a 170-year track record of life-altering inventions, the company remains one of the best low-cost tech stocks to buy right now.
As of Q3 2021, 40 hedge funds tracked by Insider Monkey were bullish on Corning Incorporated (NYSE:GLW), down from 42 in the previous quarter. These stakes hold a value of over $408 million. Among these hedge funds, Arrowstreet Capital held the largest stake in the company in Q3, worth over $111.6 million.
Recently, UBS listed Corning Incorporated (NYSE:GLW) as one of the stocks in the IT sector that is likely to cut carbon intensity in the future. The firm maintains a Buy rating on the stock. Since the beginning of 2021, Corning Incorporated (NYSE:GLW) delivered a 10.91% return to shareholders.
2. Dropbox, Inc. (NASDAQ:DBX)
Number of Hedge Fund Holders: 41
Share Price as of November 26: $24.34
Dropbox, Inc. (NASDAQ:DBX) is an American software company that provides file hosting services to its consumers. One of the best low-cost tech stocks to buy right now, Dropbox, Inc. (NASDAQ:DBX) gained 23.36% in the past year.
In the past two years, Dropbox, Inc. (NASDAQ:DBX) has beaten EPS and revenue estimates 100% of the time. Moreover, in the last three months, the company’s EPS estimates have experienced 8 upward revisions. Following the trend in Q3, Dropbox, Inc. (NASDAQ:DBX) posted an EPS of $0.37, beating the consensus by $0.02. The company’s revenue for the quarter also surpassed estimates by $5.48 million at $550.2 million.
Insider Monkey data for Q3 shows that the smart money is also taking interest in Dropbox, Inc. (NASDAQ:DBX) as 41 hedge funds tracked by Insider Monkey were bullish on the company, up from 39 in the previous quarter. These stakes have a consolidated value of $967.5 million.
1. Sonos, Inc. (NASDAQ:SONO)
Number of Hedge Fund Holders: 49
Share Price as of November 26: $32.25
Sonos, Inc. (NASDAQ:SONO), an American tech company that manufactures audio products, presented a positive hedge fund sentiment in Q3, as the number of hedge funds tracked by Insider Monkey having stakes in the company grew to 49 in Q3, from 47 in the preceding quarter. These stakes are valued at $647.4 million.
Highlighting the company’s key consumer hardware idea for 2022, Morgan Stanley, recently, lifted its price target on Sonos, Inc. (NASDAQ:SONO) to $53, with an Overweight rating on the shares. In Q3, though the company missed analysts’ estimates, the revenue experienced a 6% year-over-year growth at $359.5 million.
Since the start of 2021, Sonos, Inc. (NASDAQ:SONO) returned 41.2% to shareholders, while its 12-month gains stood at 47.6%. With a stake worth $74.8 million, D E Shaw was the company’s leading shareholder in Q3.
Greenlight Capital mentioned Sonos, Inc. (NASDAQ:SONO) in its Q3 2021 investor letter. Here is what the firm has to say:
“We expanded what was a small position in Sonos (SONO) to a size that makes it worthwhile to discuss. We’ve owned SONO, which manufactures multi-room wireless smart home sound systems, for about a year. We were initially attracted by the strength of the brand and IP, SONO’s ecosystem dynamics, and signs that the company was under-earning. We’ve been impressed with management’s ability to consistently outperform both guidance and expectations amidst a rapidly changing macro environment. We think that there is a long-term household penetration story here: SONO products are currently in approximately 11 million homes globally, a number that has grown by at least 20% in each of the last 4 years and stands to grow further as SONO adds more accessible price points, expands into new verticals, and introduces new products and services. While we acknowledge that there are near-term headwinds in the form of supply chain disruptions and a cyclical normalization in consumer electronics demand, we think these will prove to be temporary distractions in an otherwise bright growth story. Between an elevated backlog of orders that will support demand well into the next year and strong pricing power, we see earnings growing close to 25% annually for the next few years. The stock currently trades at just over 15x FY2021 adjusted earnings net of the $5 cash per share on the balance sheet today. We purchased our stake at an average price of $28.45 per share. SONO shares ended the quarter at $32.36.”
You can also take a look at 10 Best Biotech Stocks Under $6 in 2021 and Top 10 Undervalued Tech Stocks
