What's in a bargain? I'd argue the best bargain -- at least when it comes to the stock market -- is a stock that you can buy low and sell high.
So, let's have a look at three tech stocks that fit the bill: Qualcomm (QCOM +1.23%), The Trade Desk (TTD 1.36%), and UiPath (PATH 1.98%).
Image source: Getty Images.
Qualcomm
First up is Qualcomm, a mainstay of the tech sector. The company, which has long been known as a linchpin within the wireless technology industry, looks like a bargain thanks to its combination of smartphone technology and promising ventures.
NASDAQ: QCOM
Key Data Points
To start, Qualcomm remains a key part of the 5G ecosystem. As 5G networks continue to expand, Qualcomm will see further benefits thanks to its development of mobile chipsets and other related technology.
In addition, the company is expanding into newer, more growth-oriented sub-sectors, such as automotive, data centers, and Internet of Things (IoT). This expansion should excite investors as it adds a dash of much-needed revenue diversity to a company often tied to the fortunes of the wireless market.
At any rate, Qualcomm remains a value buy. Shares trade at a forward price-to-earnings (P/E) multiple of only 12 and a price-to-sales (P/S) ratio of only 3.2 -- remarkably low figures for the tech sector.
The Trade Desk
The Trade Desk operates a cloud-based platform that helps customers manage their digital ad campaigns.
NASDAQ: TTD
Key Data Points
The digital ad market is a large and fast-growing sector. Analysts place its size at over $670 billion already, with some expecting it may exceed $1 trillion by 2027.
The Trade Desk carved out a lucrative niche within the sector by focusing on programmatic advertising. This practice improves customers' return on investment by automating ad buys based on data-driven methodology.
As a result, The Trade Desk posted impressive financial results. As of its most recent quarter (the three months ending on Jun. 30, 2023), the company recorded $1.7 billion in trailing 12-month revenue, with quarterly revenue growing 23% year over year. In addition, The Trade Desk is profitable. It generated $129 million in net income, with an operating margin of 9%.
Granted, prospective investors will have to pay up to own shares. The stock trades with a P/S ratio above 22. However, given the company's leadership in this huge and fast-growing field, The Trade Desk remains a stock to consider for growth-oriented investors. Indeed, for buy-and-hold investors, it might prove to be quite the bargain.
UiPath
UiPath is a leading company in the field of Robotic Process Automation (RPA). In short, RPA helps organizations become more efficient by automating repetitive tasks.
NYSE: PATH
Key Data Points
Think about a loan application review process. Several steps require rote review and verification: downloading and classifying attachments, confirming completion of forms, and data entry of figures into internal systems.
By utilizing RPA, an organization could increase efficiency by automating the data entry and verification tasks, freeing up a human worker for other duties.
At any rate, business appears to be booming for UiPath. Revenue increased to $1.2 billion over the last 12 months, with quarterly revenue rising 19% year over year. While the company is not yet profitable, it does generate positive free cash flow. Furthermore, its balance sheet is solid with $1.8 billion in cash and less than $0.1 billion in debt.
Moreover, shares trade at under $20 per share, which will appeal to certain investors looking for a low-priced stock to add to their portfolio.
To sum up, UiPath remains an up-and-coming company within an innovative and fast-growing sector. Growth investors willing to buy and hold should keep the company in mind.
