In this article, we discuss the 5 tech stocks with a low PE ratio. To read the detailed analysis of the technology sector, go directly to the 12 Tech Stocks with low PE ratios.
5. STMicroelectronics N.V. (NYSE:STM)
PE Ratio as of November 9: 8.72
STMicroelectronics N.V. (NYSE:STM) is a Geneva-based semiconductor company. It is one of the largest semiconductor companies in the world and serves more than 200,000 customers around the world.
On November 6, STMicroelectronics N.V. (NYSE:STM) announced that it will be further promoting Connectivity Standards Alliance’s (CSA) Matter standard for security by entering into an agreement with CommScope Holding Company, Inc. (NASDAQ:COMM) to incorporate its signature STM32WB microcontroller unit (MCU) with PKIWorks IoT security platform.
On November 1, Morgan Stanley analyst Lee Simpson upgraded STMicroelectronics N.V. (NYSE:STM) stock to Overweight from an Equal Weight rating and raised the price target to EUR 48 from EUR 40. As per the analyst’s comments, the company’s margins will make a recovery in H1 2024.
On October 26, STMicroelectronics N.V. (NYSE:STM) released its third-quarter earnings result with a GAAP EPS of $1.16, which outperformed the estimates by $0.08. The revenue grew by 2.3% YoY to $4.43 billion, surpassing the estimates by $50 million.
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4. Vishay Intertechnology, Inc. (NYSE:VSH)
PE Ratio as of November 9: 8.63
Vishay Intertechnology, Inc. (NYSE:VSH) is a Pennsylvania-based corporation that produces and sells discrete semiconductors and passive electronic components.
On November 8, Vishay Intertechnology, Inc. (NYSE:VSH) released its Q3 non-GAAP EPS of $0.60, topping the analysts’ estimates by $0.04, and the revenue reported was $853.7 million. In the quarter, the company returned $31.1 million to its shareholders.
On November 8, Vishay Intertechnology, Inc. (NYSE:VSH) announced that it signed an agreement to acquire a wafer fabrication facility and connected operations from Nexperia B.V. for nearly $177 million in cash. The Newport, South Wales, U.K. facility will expand the company’s manufacturing capacity.
Liberty Park Capital Management, LLC mentioned Vishay Intertechnology, Inc. (NYSE:VSH) in its second quarter 2023 investor letter. Here is what it said:
“Vishay Intertechnology, Inc. (NYSE:VSH) reported better-than-expected results and guidance when it reported the first- quarter results.”
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3. PagSeguro Digital Ltd. (NYSE:PAGS)
PE Ratio as of November 9: 7.65
PagSeguro Digital Ltd. (NYSE:PAGS) is a Brazil-based fintech company that provides payment processing software.
On October 27, Barclays analyst John Coffey lowered the price target on PagSeguro Digital Ltd. (NYSE:PAGS) stock to $10 from $12 and maintained an Overweight rating before the announcement of the Q3 report.
Six Wall Street analysts have covered PagSeguro Digital Ltd. (NYSE:PAGS)’s stock over the last three months, and five of them keep a Buy rating on the shares. The average analyst price target for PagSeguro Digital Ltd. (NYSE:PAGS) is $12.08, showing an upside of 62.80% from its stock price of $7.42 as of November 9.
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2. United Microelectronics Corporation (NYSE:UMC)
PE Ratio as of November 9: 7.40
United Microelectronics Corporation (NYSE:UMC) is Taiwan’s first semiconductor company founded in 1980. As of 2022, it is the third-largest dedicated chip foundry in the world, with a 7% market share. Trading at an earnings multiple of 7.40x, United Microelectronics Corporation (NYSE:UMC) makes it to the second spot on our list of tech stocks with low PE ratios.
On October 25, United Microelectronics Corporation (NYSE:UMC) announced its earnings per American Depositary Share (EPADS) of $0.20 for its third quarter, exceeding the estimates by $0.04. Its revenue of $1.77 billion was down over 24% YoY but topped the estimates by $30 million. Despite the YoY decline in net income and revenues, United Microelectronics Corporation (NYSE:UMC)’s President, Jason Wang, remains optimistic and expects stability in demand for Q4 due to rush orders from PC and smartphones. However, he still warned the customers to remain cautious.
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1. Nokia Oyj (NYSE:NOK)
PE Ratio as of November 9: 4.66
Nokia Oyj (NYSE:NOK) is a Finnish company that provides network and Internet protocol (IP) infrastructure, software, and related services. The multinational corporation has offices in Asia-Pacific and Japan, Europe, Greater China, India, Latin America, the Middle East and Africa, and North America.
On October 23, Nokia Oyj (NYSE:NOK) announced its new portfolio of carrier-grade Wi-Fi 7 broadband devices, and their certification and compliance with the standard are expected to be completed in 2024. The management commented that the devices will be able to deliver multi-gigabit broadband services that are in demand in the market.
On October 24, Nokia Oyj (NYSE:NOK) announced an expansion of its FastMile 5G Fixed Wireless Access (FWA) portfolio, which will add indoor and outdoor devices. They are set to be available in the early months of 2024. According to the management, the devices will enhance FWA services by improving operators’ network capacity.
Over the last three months, Nokia Oyj (NYSE:NOK)’s stock has been covered by five analysts who maintain a Buy rating on the company shares. The average price target is $5.68, showing an upside of 64.64% from its stock price of $3.45 as of November 9 market close.
Nokia Oyj (NYSE:NOK) was mentioned in Artisan Partners’ second quarter 2023 investor letter. Here is what it said:
“Nokia Oyj (NYSE:NOK) is the world’s third-largest provider of telecommunications equipment. The company sells its products to service providers, such as AT&T and Vodaphone. While we have held the stock, new management has simultaneously improved competitiveness and reduced costs—a remarkable achievement that has resulted in improved growth and profitability. Despite that, the share price has declined, and the valuation multiple has shrunk below 10X forward earnings. The reason is that telecommunications operators are cutting back on investment. Higher interest rates, inflation and competition are eating into customer cash flows, resulting in less capital spending. For now, Nokia will experience reduced demand. At some point, the ever-increasing need for wire and wireless bandwidth will force service providers to increase investment. In addition, Nokia’s market share is improving due to geopolitical changes and improved market competitiveness. The share price declined by 15% during the quarter.”
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