What’s enticing about tech stocks for investors and those looking for solid stock buys is the ability of companies in this sector to grow quickly and even turn around massive money-draining losses into spectacular gains.
Certainly, that doesn’t mean one should throw all caution to the wind and not examine all the financial metrics of a tech start-up, including looking at their P/E ratio, earnings history, growth trajectory and more. Keep in mind that there have been some spectacular failures in just the past year, including Quibi, Loon, Tik Lab and many more.
However, some emerging companies look promising for the rest of 2021 and into 2022.
Some top mentions:
With a market value of $4.6 billion, ACI is still technically a small-cap firm — but not all small-caps are riskier than their large-cap brethren. This is a payment systems operator that acts as an electronic intermediary between banks, merchants and banks. Its “special sauce” is that travels within the center of the mobile payments universe without competing head-on with many the others in the crowded mobile payment milieu.
ACI currently enjoys more than 6,000 clients for which it handles digital payments – those customers execute some $14 trillion in transactions daily. ACI looks strong.
This semiconductor services firm manufacturers ion implants. Without getting into details, ion implants are essential components for making microchips. Ion implanting is the coating process in which ions from one substance are implanted into another to create desired chemical and physical properties.
At a value of $1.4 billion, Axcelis is still a small company that needs to grow a lot in the minds of serious investors who like to back larger-cap companies. However, what Axcelis really has going for it is demand. Global microchip shortages are a serious problem currently and this is a company that has a solution. That bodes extremely well for the future of Axcelis.
Another firm in the semiconductor space, Cohu is not a chip maker but deals in inspection equipment. This just happens to be a highly lucrative sector right now. The reason for that is that manufacturers are producing chips with ever-growing levels of complexity. They have little margin for error. What Cohu offers is a way to inspect chips to ensure they are reliable products that deliver superior performance. That makes it an extremely attractive product that’s likely to enjoy a bright future.