SNX - 3 Under-the-Radar Tech Stocks That Could Take Off
2023-08-15 13:14:16 ET
InvestorPlace - Stock Market News, Stock Advice & Trading Tips
U.S. stocks have rallied since the start of the year thanks to the significant performance of large tech stocks that dabble in Artificial Intelligence ( AI ). Big-cap tech companies have pushed the market to bullish territory while their prices reach new heights. Several industries are already reaping the benefits of AI integration, increasing efficiency and production by notable margins. Furthermore, the technology’s widening applications open new opportunities for companies looking into facilitating raw material production, component manufacture, and implementation solutions for AI leaders. It might be worth looking at these companies as we pivot from the more expensive AI stocks . So let’s look at some tech stocks ready to take off.
Benchmark Electronics (BHE)
Benchmark Electronics, Inc. (NYSE: BHE ) is a technology solutions company offering product manufacturing services for design and engineering. BHE’s services offer various products as an OMS, EMS, and ODM provider that ranges from concept to production and aftermarket support services. The company has several manufacturing facilities worldwide, including in the Americas, Europe, and Asia. Its extensive list of solutions supports industries like aerospace and defense (A&D), Industrials, Healthcare, Communication, and other Tech companies from conception to production.
Benchmark Electronics finished its 2nd quarter with solid results. Even with lower expectations from analysts, BHE beat revenue estimates by 5.92% at $733.23 million. Its EPS also beat estimates by 2.13% at $0.48 a share. Despite the challenges and slowdown in the semiconductor and capital equipment market, BHE delivered results beyond expectations. This continued resiliency and the ongoing trend of outsourcing make it one of our top-secret tech stocks that could start taking off soon.
TD Synnex Corp (SNX)
TD Synnex Corporation (NYSE: SNX ) is a solutions provider for Information Technology ( IT ) ecosystem and employs more than 23,000 workers, and serves more than 150,000 customers in 100+ countries. SNX’s two primary solution services include endpoint solutions catering to PCs, mobile phones, accessories, and small gadgets. Its advanced solutions provide businesses with system design, logistics, financial services, and online services. The company serves clients in the Americas, Asia-Pacific -Japan, and Europe.
While SNX’s reported revenue and EPS may have missed expectations, it still offers much value with its strong management team and a long-term shift to higher-margin software service. Analysts love it as it provides long-term growth opportunities with its broad product portfolio and ability to shift resources and investments quickly. SNX recently joined hands with CoreStack as a strategic partner to enable growth and scalability to their partner ecosystem. With the rise in A.I., the company can enhance the efficiency of its processes and further boost growth, making it one of the most promising under-the-radar tech stocks to buy.
TTM Technologies (TTMI)
TTM Technologies Inc. (NASDAQ: TTMI ) manufactures technologically advanced PCBs (printed circuit boards), specialty components, and technologically advanced solutions globally. These serve various markets, including data centers, automotive, medical, industrial, network and communications, and aerospace and defense. TTMI segments are: PCB and RF, and Specialty Components (RF&S Components) have operations globally, including North America, Asia Pacific, and EMEA.
While the revenue for the 2nd quarter of 2023 dropped -10%, its net income and EPS still beat expectations. EPS came at $0.32 and exceeded expectations by 60%; net income arrived at $33.04 million, a surprise at 48.70%. According to Tom Edman, CEO of TTM, “Revenues were within the guided range due to the strength of their Aerospace and Defense and Data Center Computing end markets.” TTMI has continued to gain momentum and has more room to grow. Its resiliency and permanence have made it one of your portfolio’s leading stealth tech stocks.
On the date of publication, Rick Orford 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
Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.
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