11 Tech Stocks With Low PE Ratios


In this article, we look at 11 technology stocks with low PE ratios. Go directly to see more such companies 5 Tech Stocks With Low PE Ratios.

Tech stocks have been decimated in 2022 as rising inflation, rising costs, supply chain issues and the Russia-Ukraine war began to dampen market optimism. However, some analysts believe that the market could bounce back in 2023. If so, tech stocks’ strong fundamentals and attractive valuations can bring strong returns to shareholders. According to a Bloomberg report published in December, several prominent analysts believe that the market could grow again in 2023. In a Bloomberg News survey, 71 percent of respondents think U.S. stocks are likely to rise this year, down from 19 percent forecast. The survey included 134 fund managers, including those from BlackRock Inc., Goldman Sachs Asset Management and Amundi SA. However, if inflation persists or the economy enters a deep recession, the stock market could take a hit again, respondents said.

The report cites Pia Hack, chief investment officer at Swedish bank Robur. Although the economy is likely to slow down in 2023 and profits will decline, analysts have discounted some in 2022.

“We will have better visibility into 2023 and that will hopefully help the markets,” Haque added.

However, market recovery will not be easy or smooth, many analysts believe. At JPMorgan Chase & Co. Global equity strategist Mislav Matjaka believes that the risk he sees in the stock market in 2022 is not over and this makes the analyst “concerned about the outlook for 2023” especially for the first half of the period. To a separate Bloomberg report.

The latest report of the investment firm It gives an opportunity to get an idea of ​​what to expect in 2023. The company said it expects economic growth to remain muted in 2023. He still sees a “reasonable” chance of a soft landing, but it’s even. Chance of mild failure. Job losses and volatility will offset wage increases and consumer benefits from lower inflation in 2023, the report said.

The Stifel report said that as we move into mid-2023, investors may begin to see a new “growth cycle” that will be reflected in optimism if the Federal Reserve decides to halt rate hikes and China continues its reopening policy after lifting COVID restrictions. These factors, according to the report, could push the stock market higher in 2023. In the year In 2023, Stifel expects to post revenue growth in the 0-5% range. The firm also expects an S&P 500 total return of 6% and a corresponding price target. 4,000 at the end of the year.

Image courtesy of Sergey Tokmakov. Law from Pixabay

Our method

For this article, we used stock filters to identify PE ratios under 15. We then selected 11 stocks that are popular among the top hedge funds tracked by Insider Monkey. For each stock, we’ve listed the number of hedge funds that held stakes in it as of the end of September. We have cited analyst ratings and growth catalysts for these companies. The list is arranged in descending order of PE ratios.

11 Tech Stocks With Low PE Ratios

11. Applied Materials, Inc. (NASDAQ:Huge)

P/E ratio: 14.67

Number of Hedge Fund Holders: 67

Applied Materials, Inc. (NASDAQ: AMAT) sells materials engineering solutions to the semiconductor industry. It is currently one of the most important tech stocks with a low PE ratio. In December, Bernstein analyst Stacey Rasgon mentioned several stocks as semiconductor picks for 2023, and Applied Materials Inc. ( NASDAQ:AMAT ) was one of them. Applied Materials, Inc. ( NASDAQ:AMAT ) is also dividend-paying. Applied Materials, Inc. (NASDAQ:AMAT) declared a quarterly dividend of $0.26/share in December. At the time, the dividend was 0.95%. The dividend will be paid on February 23 to shareholders on March 16.

As of the end of the third quarter, 67 hedge funds tracked by Insider Monkey held Applied Materials, Inc. (NASDAQ: AMAT ) reported that they have shares.

10. Flex Ltd. (NASDAQ:FLEX)

P/E ratio: 13.63

Number of hedge fund holders: 57

Flex Ltd. (NASDAQ:FLEX) is a Singapore-based manufacturing company that performed well last year, gaining 31%. Still, Flex Ltd. (NASDAQ:FLEX) has a low PE ratio compared to peers. Flex Ltd. (NASDAQ:FLEX) is one of the world’s largest electronics manufacturing services and OEM companies by revenue. Flex Ltd. ( NASDAQ:FLEX ) has a diversified business model as it participates in lucrative markets including automotive, consumer healthcare, robotics and energy. In October, Flex Ltd. (NASDAQ: FLEX ) released its second-quarter results, with adjusted EPS of $0.63, beating estimates by $0.12. Revenue for the quarter rose 25 percent to $7.77 billion, beating estimates by $550 million. For Q3, Flex Ltd. (NASDAQ:FLEX) expects revenue between $7.3 billion and $7.7 billion, with consensus estimates of $7.27 billion.

9. Skyworks Solutions, Inc. (NASDAQ:SWKS)

P/E ratio: 12.94

Number of Hedge Fund Holders: 39

Another semiconductor stock on our list, Skyworks Solutions, Inc. (NASDAQ:SWKS) has lost about 33% over the past year. Skyworks Solutions, Inc. ( NASDAQ:SWKS ) management is trying to reduce the company’s reliance on mobile revenue. As of FY’22, broad market revenue from Skyworks Solutions, Inc. (NASDAQ:SWKS) accounts for about 36% of total revenue. In November, investment firm KGI Securities analyst Derek Chang said Skyworks Solutions, Inc. (NASDAQ:SWKS) was upgraded from Neutral to Outperform with a $130 price target.

A total of 39 hedge funds hold Skyworks Solutions, Inc. out of 920 funds tracked by Insider Monkey. (NASDAQ:SWKS) have reported shares. The total value of these shares was $964 million. Skyworks Solutions Inc. is a subsidiary of Israel’s British Millennium Management. (NASDAQ:SWKS) is the largest shareholder with a stake of $142.4 million.

Heartland Advisors About Skyworks Solutions, Inc. Here’s what (NASDAQ:SWKS) specifically said in its Q3 2022 investor letter:

“Prior to risk early in the quarter, we were looking for opportunities to transition from our defensive position away from looking for beaten-down, high-quality ‘first-cycle’ leads. Existing holdings; Skyworks Solutions, Inc. (NASDAQ:SWKS ), added to weakness, represents one such opportunity.

SkyWork is one of two leading suppliers of radio frequency system components to smartphone makers and electronics manufacturers. At every level of product complexity, over the past two decades, the competitive landscape has shrunk, while gross margins have increased dramatically. 5G represents another such step, potentially increasing how much SkyWork can do with each smartphone.

Apple is a big customer, accounting for more than half of SkyWorks’ sales. That customer focus has depressed Skyworks’ valuations over time. More recently, concerns about the global recession and concerns over consumer demand have put further valuation pressure on. However, the handset business is expected to benefit from 5G content, which will help offset some of the macroeconomic pressures. Away from the phone business, Skyworks’ growth is expected to accelerate to other global drivers such as WIFI 6 and the growth of the Industrial Internet (ie the “Internet of Things”).

With a P/E of less than eight and a dividend yield of 2.3%, SWKS rarely gets this cheap, making it a compelling high-quality stock for long-term investors.

8. Western Digital Corporation (NASDAQ:WDC)

P/E ratio: 12.91

Number of Hedge Fund Holders: 46

Western Digital Corporation (NASDAQ:WDC) is one of the world’s leading data storage products companies. Western Digital Corporation ( NASDAQ:WDC ) has lost about 44% in value over the past year. However, some incentives point to possible growth in the near future. Earlier this month, Benchmark analyst Mark Miller raised his rating on Western Digital Corp. (NASDAQ:WDC) to Sell from Sell after media reports suggested that Western Digital Corp. (NASDAQ:WDC) had resumed merger talks with Japan’s Kyoxia. The analyst said the memory chip market could be headed for a recovery from its “worst slump in years.” However, the analyst cautioned investors that some factors could still delay this recovery. These factors include PC, data center and mobile chip sales expected to remain soft in 2023.

7. Seagate Technology Holdings plc (NASDAQ:STX)

P/E ratio: 11.12

Number of Hedge Fund Holders: 28

Shares of data storage products company Seagate Technology Holdings Plc (NASDAQ: STX ) have taken a huge beating over the past year, losing nearly half their value. Seagate Technology Holdings plc (NASDAQ: STX ) is expected to suffer from volatility in the data storage market in the coming months. That’s why Western Digital Corporation (NASDAQ:WDC) is only suitable for those willing to protect. In November, Susquehanna upgraded its rating for Seagate Technology Holdings plc (NASDAQ: STX ) after Seagate Technology Holdings plc (NASDAQ: STX ) conducted a debt swap to boost its balance sheet. According to new estimates, the investment firm expects Seagate’s fiscal 2023 earnings to be $1.79 per share, down from its previous view of $1.87 and below the consensus estimate of $1.98.

At the end of the third quarter, 28 hedge funds tracked by Insider Monkey reported holdings in Seagate Technology Holdings plc (NASDAQ: STX ). The total value of these shares was $1.1 billion.

ClearBridge Investments made the following comments about Seagate Technology Holdings plc (NASDAQ:STX) in its Q3 2022 investor letter.

“In cyclical technology, disk drive makers Seagate Technology Holdings Pvt (NASDAQ: STX ) and Western Digital ( WDC ) have been hit by an inventory correction due to slowing growth in their core PC and server markets, as well as disproportionate demand from budget-conscious hyperscale cloud providers. While these two stocks remain cheap on a valuation basis, they have clearly seen a slowdown in business over the past two quarters.

6. NetApp, Inc. (NASDAQ:NTAP)

P/E ratio: 9.82

Number of Hedge Fund Holders: 36

NetApp, Inc. (NASDAQ: NTAP) is a hybrid cloud and data management company. Over the past 12 months, NetApp, Inc. ( NASDAQ:NTAP ) has lost about 32% in value. As of January 13, NetApp, Inc. (NASDAQ:NTAP) has a PE ratio of 9.8. In November, NetApp, Inc. (NASDAQ: NTAP ) after posting mixed quarterly results and giving weak guidance, the stock fell. However, investment firm Citi said the fall created a buying opportunity. The company NetApp, Inc. (NASDAQ: NTAP ) believes it is steadily gaining market share. In a note, Citi analyst Jim Suva attributed the weak guidance to the global macro environment and foreign exchange headwinds. The company thinks it has a good position in the cloud storage market. The analyst at NetApp, Inc. (NASDAQ:NTAP) has a $110 price target with a Buy rating.

As of the end of the third quarter, 36 hedge funds tracked by Insider Monkey held NetApp, Inc. (NASDAQ:NTAP) has reported a stake in The total value of these shares was $587.1 million.

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Disclosure: None 11 Tech Stocks With Low PE Ratios Originally published on Insider Monkey.



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