7 tech stocks to put on your January buying list

While many investors may still be reeling from the chaos of 2022, the volatility also points to contrarian (and bargain) prospects among attractive tech stocks. Admittedly, red ink by itself doesn’t always equate to opportunity. Still, even with looming recession fears, the underlying innovation sector won’t remain contracted indefinitely.

I’m not ruling out the possibility of a recession. But some of the hottest tech stocks have already taken a big hit. Once the weak hands are wiped out, investors may try to ditch names in other sectors. Also, people frequently take advantage of commercialized innovations. Meltdown or not, the demand for advanced technology will almost certainly increase in the long run. Admittedly, there are choppy concerns with these discounted ideas. Still, if you have the stomach, these are the most compelling discounts on tech stocks.

CTSHMore	Cognizant Technology	$59.75
KLIC	cricket and sofa	$46.91
Simo	silicon motion	$62.11
CCRD	core card	$29.25
PLAB	photonics	$17.50
plus	eplus	$45.47
ITRN	Ituran location and management	$21.41

Cognizant Technology (CTSH)

Based in New Jersey, Cognizant Technology (Nasdaq:CTSHMore) is a multinational information technology services and consulting company. Cognizant offers several solutions including business process services, cloud computing applications, industrial automation and artificial intelligence. Today, the company has a market capitalization of just under $30 billion.

Indeed, Cognizant, like many tech stocks you buy for comparison, suffered heavy losses in 2022. But bullish traders appear to be looking to reverse this narrative. Over the past five days, CTSH has been able to return his 2.5%.

Cognizant’s valuation is significantly undervalued according to Gurufocus.com’s own fair market value calculations. Objectively, the market estimates his CTSH at 12.4 times futures profit. In contrast, the sector median is almost 24 times higher. Additionally, technology companies enjoy strong profitability metrics and balance sheet stability. As a goodbye, since the first quarter of 2021, Cognizant has exceeded its earnings-per-share consensus target. So buying tech stocks in January is worth serious consideration.

Cricket and Sofa (KLIC)

located in singapore Cricket and the sofa industry (Nasdaq:KLIC) may have received the least attention among state-side investors. But that could change soon, moving in part to one of the tech stocks to buy for its relevance.

According to a public profile, Kulicke is a leading provider of semiconductor, LED and electronic assembly solutions serving the global automotive, consumer, communications, computing and industrial markets. With such a broad footprint across diverse industries, even a global recession may not be enough to overthrow KLIC.

To be fair, the market hasn’t been in Kulicke’s favor, with the stock losing more than 24% of its market value over the past year. However, in the past six months, KLIC has risen nearly 15% of his. Part of this enthusiasm for the second half of 2022 is focused on fundamentals. In its latest financial fourth quarter report, Kulicke beat analysts’ sales and earnings estimates. According to TipRanks, the analyst’s average price target pegs his KLIC at $60, representing a 33% upside potential. This is one tech stock to buy, especially since Wall Street is only priced at 6.4 times its price/earnings ratio.

Silicon Motion (SIMO)

leaving Taiwan, silicon motion (Nasdaq:Simo) focuses on the development of NAND flash controller integrated circuits for solid state storage devices. Today, Silicon Motion has a market cap of just over $2.1 billion. Like other tech stocks, SIMO has endured his 2022 crash. A year later, the stock gave up nearly 30% of his market value.

However, it is also true that bullish traders have tried to right the ship in recent sessions. In the last month, SIMO won his 1% of the hard fought. Long term, investors may be very happy to have taken a risk with Silicon Motion.

First, consider the analyst’s opinion. He is only four to cover SIMO, but is rated as a strong buy by consensus. 3 separate buy ratings and 1 hold. The average target price is $88.25, up nearly 38% since the time of writing.

Second, SIMO offers excellent discounts, with market-price shares less than 10 times futures earnings. In contrast, the sector median is 16.7x. So don’t miss this opportunity among tech stocks.

Core card (CCRD)

Calling Norcross, Georgia home, core card (New York Stock Exchange:CCRD) provides powerful and integrated solutions for all types of card issuing programs, including complex credit, according to its website. However, to be clear, CoreCard may face a difficult situation ahead. Credit card debt recently hit a record high, signaling a fundamental problem in the consumer economy.

Still, there could be a bullish case here for patient contrarians. According to Gurufocus.com, the underlying business has 5 green flags and no red flags. This is actually unusual for an investment resource. Among the attributes it identified are strong financial strength and low bankruptcy risk (according to Altman Z-Score 16.3).

Objectively, CoreCard’s return on equity is over 32%, outperforming its competitors at 93%. This statistic also reflects a strong ability to convert equity financing into profits. Similarly, CCRD has a market price of 15.9x, below the sector median of 25.5x. Finally, hedge funds have started building positions on CoreCard. If institutional investors consider it one of the tech stocks to buy, it could do very well.

Photonics (PLAB)

A specialty tech company photonics (Nasdaq:PLAB) focuses on photomask products and services. According to the company’s website, it is a world leader in this field, with applications in mainstream nodes, integrated circuits, and flat panel displays. Today, the company has a market capitalization of just over $1 billion. In subsequent years, PLAB lost 12.4% of his.

Still, the bulls have been working hard to create positive momentum in the last few days. PLAB has enjoyed some good stocks, so he could very well be one of the top tech stocks to buy later this year. For example, his three-year revenue growth at Photronics was 19.2%, outperforming his nearly 73% peers. In conclusion, the company’s net profit margin is 14.4%, ahead of industry players’ 61%.

PLAB is slightly underestimated according to Gurufocus.com’s own FMV calculations. Objectively, you can make the same case. The stock is currently trading at an 8.6x trailing gain. Also, the market price is 1.2 times his PLAB sales. Both stats are undervalued for the underlying industry. Finally, TipRanks says insider buying sentiment is positive. That’s another reason I see PLAB as one of the tech stocks to buy.

eplus (plus)

Headquartered in Herndon, Virginia, eplus (Nasdaq:plus) is a company that sells and finances IT assets. According to its website, ePlus designs innovative technology solutions for the world’s most forward-thinking companies. These services include areas such as cloud computing, data centers, and cybersecurity.

Despite its exceptional relevance, PLUS never ventured on the positive side of the price chart. In the most recent year, the stock gave up over 18% of its equity value. This is similar to benchmark stock indices. To be honest, the latest session shows a choppy profile. Still, for those looking to take a risk and buy among undervalued tech stocks, ePlus may be your ticket.

Objectively, ePlus offers an undervalued investment. Currently, the market price shows 11.5 times more tracking revenue and 0.61 times more sales than PLUS. Both stats are well below the median stats for their respective sectors. Also, ePlus is 2.2 times the price of physical books. The sector median is 3.4x. Finally, TipRanks states that hedge fund sentiment on PLUS ping is “positive.” This helps you buy attractive ideas among tech stocks.

Ituran Location and Control (ITRN)

save the most dangerous ideas for last, Ituran location and management (Nasdaq:ITRN) operates outside Israel. The company provides stolen vehicle recovery and tracking services and sells GPS wireless communication products. ITRN is a related business and has failed to attract the attention of Wall Street, especially with property crime on the rise.

Well, not in a good way, but it got some attention. In his most recent year, the stock has fallen nearly 21%. The main problem, however, is the recent sharp deterioration in sentiment, with ITRN losing 10% of him in the past month. Still, for investors with a high risk tolerance, buying speculative technology stocks may be worthwhile.

First, Ituran enjoys a solid balance sheet, notably an above-average debt-to-equity ratio of 0.16x. In terms of profitability, the company enjoys nearly 13% of his net profit, beating his competitors’ more than 82%. ROE was 27%, reflecting a very high quality business. Finally, the market values ​​his ITRN at 11.6x his trailing return, below the sector median of 16.6x. If you can handle the near-term potential volatility, Ituran may be one of the tech stocks to buy.

Josh Enomoto on publication date I did not have any positions (directly or indirectly) in any of the securities mentioned in this article. The opinions expressed in this article are those of the subject author of InvestorPlace.com. Publication guidelines.