Tech stocks suffered a brutal sell-off at the end of 2021. However, this has since created many lucrative opportunities for contrarians to buy low and sell high. Within this article, we’ll explore a quartet of intriguing tech firms that could be underpriced in the market. This includes FTSE 250-listed Playtech, which is currently the subject of a protracted takeover.
According to a review by oddschecker, Playtech almost exclusively powers the Betfair Casino platform, as well as other UK-licensed sites such as Mansion and Ladbrokes. We’ll also look at big-name tech stocks, like Dell Technologies, which have a fascinating price-to-earnings ratio.
1. Lumen Technologies (NYSE: LUMN)
Lumen Technologies, formerly known as CenturyLink, saw its share price surge by almost a third (28%) last year, but LUMN has plunged somewhat in 2022. This has come as a surprise to most contrarian investors, given that the stock is priced at only three times its trailing 12-month available cash flow, opening up lucrative dividend yield possibilities for shareholders.
With significant investment in cybersecurity, edge computing and collaborative software, Lumen Technologies is certainly well-poised to deliver strong returns.
2. Playtech (LON: PTEC)
Playtech is an iGaming software development company that’s been powering the iGaming market for more than two decades. A member of the FTSE 250, the Isle of Man-headquartered company specialises heavily in video and live dealer casino games.
It’s currently the subject of a buyout bid from Hong Kong-based TTB Partners, with “positive progress” made in recent weeks, suggesting a surge in share price could be possible if a deal is closed. Its Q1 2022 trading update also pointed to its board’s “great confidence” in the remainder of 2022 and beyond.
3. Dell Technologies (NYSE: DELL)
In terms of its 12-month trailing price-to-earnings ratio index, Dell Technologies is at 6.7 alongside HP Inc. This makes it one of the best value tech stocks in all the major stock markets today. The global tech giants now have a global employee base of 39,000-plus, serving in 180 nations.
Despite this, its share price is 55% down in the last 12 months, significantly below the market average of -8.4%, although its earnings per share belies the current market sentiment.
4. Qualcomm (NASDAQ: QCOM)
According to The Motley Fool, Qualcomm’s share price was worth only 22 times its trailing 12-month available cash flow in Q1 2022, leaving plenty of potential upside. Most smartphone devices are powered by some form of Qualcomm microchip and the drive for 5G-compatible devices will keep the company busy in the coming years.
Its latest mobility chip concepts are sure to drive further growth, while investors in Qualcomm also benefit from a not-insignificant dividend yield as well as potential share repurchases.
To find tech stocks with growth potential, be sure to look for equities that have distinctly encouraging growth prospects. If earnings are likely to move into another stratosphere, it can sometimes be worth paying a premium today to avoid that unwanted feeling of the fear of missing out (FOMO).