While innovative enterprises offer significant upside potential, their price point often deters would-be investors, which is what makes these tech stocks to buy near 52-week lows so attractive. Because of broader economic pressures stemming from 2022’s headwinds, several tech firms suffered sharp losses. However, a select few might make for compelling contrarian opportunities.
In addition to trading near one-year lows, these undervalued tech stocks fall under the radar for arguably unjustified reasons. Objectively, they bring an attractive discount to the table. But fundamentally as well, these relevant innovators should grab more attention. Yet they apparently flounder in frustrating anonymity. Still, the market’s loss is your gain. These are the bargain tech stocks with growth potential.
|ITRN||Ituron Location and Control||$21.68|
Cognizant Technology (CTSH)
A multinational information technology services and consulting firm, Cognizant Technology (NASDAQ:CTSH) helps companies modernize technology, reimagine processes and transform experiences so they stay ahead in a fast-changing world, according to its website. A large enterprise with a market capitalization of over $30 billion, CTSH gained only 3% since the start of the year. In the past 365 days, it’s down over 28%.
Although the red ink is unsightly, it also makes CTSH one of the tech stocks to buy near 52-week lows. According to data from Google Finance, its one-year low sits at $51.33. At the time of writing, shares trade hands at $59.49 or 16% up. Notably, shares are down 31% below their 52-week high. Financially, the market prices CTSH at a trailing multiple of 13.46. As a discount to earnings, Cognizant ranks better than 79.46% of companies listed in the software industry. As well, it trades at 13.1-times forward earnings. Here, the sector median stat stands at a lofty 24.64 times. Therefore, it’s worth considering for undervalued tech stocks.
An Indian multinational corporation, Wipro (NYSE:WIT) provides IT, consulting, and business process services. Per its public profile, Wipro’s capabilities range across cloud computing, cyber security, digital transformation, artificial intelligence, robotics, data analytics, and other technology consulting services. It reaches customers in 167 countries. However, since the start of the year, WIT declined by more than 6%.
In the past 365 days, WIT stumbled by nearly 35%. Still, for contrarians, WIT may rank among the compelling tech stocks to buy near 52-week lows. Per Google Finance, WIT’s trailing-year low sits at $4.32. Trading at $4.41 at the time of writing, we’re talking only a 2% delta.
Financially, the market prices WIT at a trailing multiple of 16.9. As a discount to earnings, Wipro ranks better than 67.9% of its software peers. Also, WIT trades at 14.76 times forward earnings. Here, Wipro sits favorably below 75.7% of sector players. Therefore, it’s another intriguing idea among bargain tech stocks.
Founded in Israel and presently headquartered in Chesterfield, Missouri, Amdocs (NASDAQ:DOX) specializes in software and services for communications, media, and financial services providers and digital enterprises. As well, the company features relevancies in the 5G rollout and cloud-based initiatives. Since the start of the year, DOX gained a hair over parity.
Contrary to other tech stocks to buy near 52-week lows, DOX isn’t exactly hurting in the charts. Per Google Finance, DOX’s one-year low sits at $76.79. Right now, shares trade at $91.85, which is a gap of nearly 20% up. In the past 365 days, DOX gained over 12%. And in the past five years, it’s up over 36%.
Nevertheless, on a financial note, DOX ranks among the cheap tech stocks with growth potential. Right now, the market prices DOX at a trailing multiple of 20.69. As a discount to earnings, Amdocs ranks better than 60.58% of its software peers. Also, DOX trades at 16.41 times forward earnings. Against projected earnings, the company ranks better than 70.11% of the competition.
One of the most intriguing undervalued tech stocks to consider, Phototronics (NASDAQ:PLAB) is a semiconductor photomask manufacturer. According to Photo-Sciences.com, photomasks represent solid, transparent substrates featuring varied surface constitutions to enable the modulation of passing light. It’s a critical component for the development of various industrial and consumer products.
Despite its relevance, the market doesn’t seem to care much right now. Since the Jan. opener, PLAB fell more than 10%. Its one-year low sits at $13.87, whereas shares trade hands today at $15.06, or a 9% gap. On the financial side, the market prices PLAB at a trailing multiple of 8.41. As a discount to earnings, Phototronics ranks better than 85.41% of companies listed in the semiconductor space. Also, PLAB trades at 1.08 times sales. In contrast, the sector median stands at 2.54 times.
Finally, the company enjoys a strong balance sheet, with a cash-to-debt ratio of over 11 times. Therefore, it’s a choice idea among tech stocks to buy near 52-week lows.
Based in Minnesota, Clearfield (NASDAQ:CLFD) manufactures and distributes passive connectivity products. According to its public profile, Clearfield’s fiber management and enclosure platform consolidates, distributes, and protects fiber through inside plant facilities, outside plant facilities, to the home, and to the drop-off points in between. Unfortunately, the market doesn’t appreciate its relevance, with shares falling almost 53% since the January opener.
Nevertheless, for bold contrarians, CLFD may rank among the tech stocks to buy near 52-week lows. Per Google Finance, CLFD’s one-year low sits at $41.34. At the time of writing, shares trade hands at $43.38, only a 5% gap. However, on the financial front, the market prices CLFD at a trailing multiple of 11.42. As a discount to earnings, Clearfield ranks better than 74.29% of companies listed in the hardware industry. Also, shares trade at 10.73 times forward earnings. In contrast, the sector median stat comes in at 15.34 times.
As with Phototronics above, Clearfield benefits from a stable, cash-rich balance sheet. Thus, it’s an intriguing opportunity among undervalued tech stocks.
Taitron Components (TAIT)
Headquartered in Valencia, California, Taitron Components (NASDAQ:TAIT) is a national distributor of brand-name electronic components and supplier of originally designed and manufactured electronic components. Per its website, Taitron’s product offerings range from discrete semiconductors to small electronic devices. Since the January opener, TAIT gained almost 3% of its equity value.
In the trailing year, it’s a bit of a different story, with shares losing nearly 1% of market value. Still, it could be an enticing opportunity among tech stocks to buy near 52-week lows. Here, that low sits at $3.16, whereas shares presently trade hands at $3.58 or 13% up.
On the financial side, the market prices TAIT at a trailing multiple of 6.77. As a discount to earnings, Taitron ranks better than 89.61% of its peers. Also, shares trade at 1.33 times tangible book value. In contrast, the sector median stat comes in at 1.99 times. Lastly, Taitron features zero debt, affording the enterprise incredible flexibility against uncertain times. Thus, it’s one of the bargain tech stocks to consider.
Ituran Location and Control (ITRN)
Another Israeli firm, Ituran Location and Control (NASDAQ:ITRN) provides stolen vehicle recovery and tracking services. As well, it markets GPS wireless communications products. With a rise in challenging behaviors – to put it diplomatically – during the post-pandemic new normal, Ituran might see a demand boost for cynical reasons. Since the Jan. opener, ITRN gained over 3% of its equity value.
In the past 365 days, it’s a bit of a different story, with shares declining more than 3%. Also, in the past five years, ITRN slipped almost 31%. Still, it could make for one of the tech stocks to buy near 52-week lows. Here, the target price sits at $20.83. On the other hand, shares trade hands now at $21.87, or a 5% gap.
Looking at the financials, ITRN trades at a multiple of 12.02. As a discount to earnings, Ituran ranks better than 71.32% of companies listed in the hardware industry. Additionally, ITRN trades at 9.94 times the operating cash flow. In contrast, the sector median stat comes in at 14.69 times.
On the date of publication, Josh Enomoto 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.