What are the top 20 Undervalued Stocks (selected over 5 market cap classes) in the Technology Sector? I have used the analysis tools on the website stockcalc.com to generate the content of this blog post. Have a look down the Welcome page www.stockcalc.com/Welcome for some of the free lists and reports available.
Or start your StockCalc 30 Day Free Trial
Undervalued Stocks -Technology Sector
Today our focus is the Technology sector and we are looking at companies that are undervalued based on our Weighted Average Valuation (WAV) calculation which we do for the 8000 stocks each night in the StockCalc database. The Technology sector is comprised of companies in the following Industry groups: Application Software, Computer Hardware, Consumer Electronics, Semiconductors and Electrical Components. For example the sector includes companies that design, develop, market, and support hardware and software programs, including those that are cloud-based, for specific consumer and business functions. The stocks are generally not held for their dividends but rather capital appreciation.
We generate our Weighted Average Valuation (WAV) from 5 models and Analyst consensus. Overview of the models used: Discounted Cash Flow (DCF value) is a valuation technique where cash flow projections are discounted back to the present to calculate value per share. A Comparables model values the company on the basis of ratios from selected comparable companies. We actually do 3 types of comparables models. An Adjusted Book Value (ABV) is calculated by multiplying book value per share by its historical Price to Book ratio. If we have Analyst coverage we look at the consensus target price.
Today’s Data – Technology
In the table below we can see the close price (Apr 12th 2021) and valuation for these companies along with the ratio of valuation to price as well as their market cap class and average trading volume.
| Stock Symbol | Company Name | Close Price($) | Valuation ($) | Value/ Price | M Cap Class | Average Volume |
|---|---|---|---|---|---|---|
| BKI-N | Black Knight | 74.26 | 85.13 | 1.15 | Large Cap | 650614 |
| CRM-N | Salesforce.com | 228.76 | 262.00 | 1.15 | Large Cap | 6205676 |
| ADI-Q | Analog Devices | 159.73 | 180.00 | 1.13 | Large Cap | 2026743 |
| CTXS-Q | Citrix Systems | 142.06 | 157.00 | 1.11 | Large Cap | 798943 |
| SHOP-N | Shopify | 1202.00 | 1324.85 | 1.10 | Large Cap | 1030514 |
| MSP-N | Datto Holding | 23.85 | 32.79 | 1.37 | Mid Cap | 380761 |
| CRSR-Q | Corsair Gaming | 33.67 | 42.84 | 1.27 | Mid Cap | 657094 |
| STMP-Q | Stamps.com | 207.61 | 244.14 | 1.18 | Mid Cap | 171026 |
| APPF-Q | AppFolio | 142.50 | 166.89 | 1.17 | Mid Cap | 127772 |
| BLKB-Q | Blackbaud | 71.55 | 82.13 | 1.15 | Mid Cap | 260796 |
| EBIX-Q | Ebix | 30.05 | 58.33 | 1.94 | Small Cap | 251650 |
| OPRA-Q | Opera | 10.62 | 17.24 | 1.62 | Small Cap | 211606 |
| VHC-N | VirnetX Holding | 5.04 | 7.59 | 1.51 | Small Cap | 505982 |
| IMXI-Q | International Money | 14.85 | 18.25 | 1.23 | Small Cap | 70283 |
| ZEPP-N | Zepp Health | 10.51 | 12.84 | 1.22 | Small Cap | 239979 |
| WTRH-Q | Waitr Hldgs | 2.76 | 4.29 | 1.55 | Micro Cap | 1778011 |
| DAKT-Q | Daktronics | 6.31 | 9.02 | 1.43 | Micro Cap | 79138 |
| PCYG-Q | Park City Gr | 5.28 | 7.19 | 1.36 | Micro Cap | 57141 |
| INOD-Q | Innodata | 6.94 | 8.78 | 1.26 | Micro Cap | 92037 |
| FKWL-Q | Franklin Wireless | 12.75 | 15.39 | 1.21 | Micro Cap | 152953 |
N-NYSE, Q-Nasdaq, A-American, T-Toronto, X-Toronto Venture
Lets look at a few companies…
Lets look at a couple of the companies on this list to get a better understanding of them.
Salesforce.com
http://www.salesforce.com
Salesforce.com Inc is a software-as-a-service company that provides enterprise cloud computing solutions, offering social and mobile cloud apps and platform services, as well as professional services to facilitate the adoption of its solutions.
Corsair Gaming
https://www.corsair.com
Corsair Gaming Inc is engaged in the business of providing high-performance gear for gamers and content creators. The product portfolio includes Cases, Keyboards, Mice, Headsets, Power Supplies, Gaming Computers, Gaming Chairs, Mouse pads, and other related products. The company operates in two segments namely, Gamer and Creator peripherals and Gaming Components and systems.
Daktronics
https://www.daktronics.com
Daktronics Inc along with its subsidiaries is engaged in the design, manufacture and sale of electronic display systems and related products for Commercial, Live Events, Schools and Theatres, and Transportation.