A look at the current prices of many of the top technology stocks today can be somewhat discouraging, as the sheer sticker shock makes many of them almost impossible to own on a single-stock basis. Or sure, you can add them via a mutual fund or an exchange traded fund that owns the shares, but that kind of fractional ownership is often not the path investors want to take. One idea is to look for tech companies that are lower priced and offer big upside.
We screened the Merrill Lynch research universe looking for top-quality technology stocks that were priced under $20 per share, rated Buy and looked to have good potential to the firm’s price target. While not suitable for all accounts, aggressive investors may find these four right up their alley.
This stock has been hit hard and could offer the best upside for aggressive accounts. 3D Systems Corp. (NYSE: DDD) is a leading provider of 3D content-to-print solutions, including 3D printers, print materials and on-demand custom parts services for professionals and consumers.
The company has seven print engine technologies: Stereolithography, Select Laser Sintering, Multi-Jet Molding, Fused Deposition Modeling, Film Transfer Imaging, Digital Light Processing and Powder Binding. For 2016, 35% of revenue came from the Products segment, 25% from Materials and 41% from Services.
The Merrill Lynch price target for the stock is $20, and the Wall Street consensus target is $15.73. The shares closed Wednesday at $13.75.
This stock was on fire a couple of years ago but was absolutely eviscerated after numerous earnings misses. FireEye Inc. (NASDAQ: FEYE) has been mentioned over the years as a takeover target, and trading 85% below highs that were printed this time three years ago, it may indeed be on the radar.
The company provides cybersecurity solutions for detecting, preventing, analyzing and resolving cyberattacks. The company offers vector-specific appliance solutions that provide threat protection from network to endpoint for inbound and outbound network traffic that may contain sensitive information.
FireEye also offers Central Management System that provides cross-enterprise threat data correlation to identify and block attacks across multiple attack vectors. Its Threat Analytics Platform helps to identify and respond to cyber threats by correlating enterprise-generated security event data from any security product with real-time threat intelligence, and its Malware Analysis System helps to manually execute and inspect advanced malware, zero-day and other advanced cyberattacks embedded in files, email attachments and web objects.
The company reported solid second-quarter numbers in August, and the stock has rallied smartly from lows printed in March.
Merrill Lynch recently raised the price target to $21 from $18, while the consensus target is $16.95. The stock closed Wednesday at $16.90.