2 Tech Stocks Stocks Under $10 Says Wall Street Will Double

Concerns over the economy sliding into recession due to monetary policy tightening led to a broad sell-off in tech stocks, as evidenced by the benchmark composite index’s 27.4% drop Nasdaq year-to-date. In addition, the consumer price index for May rose 8.6% year over year, the fastest progression in more than 40 years. The Fed is also expected to raise interest rates by half a point next week and another half point in July.

However, this presents a golden opportunity for investors to add quality tech stocks that are now trading at attractive valuations. These stocks are expected to rebound in the near term as the ongoing digital transformation and growing use of cloud computing, artificial intelligence (AI) and the Internet of Things (IoT) are expected to continue to drive growth in the technology industry. According to Gartner, Inc. (IT), global IT spending is expected to reach $4.4 trillion in 2022, up 4% year over year.

In this context, it might be a good idea to add some quality technology stocks Similarweb Ltd. (SMWB) and Taboola.com Ltd. (TBLA) to your watch list as Wall Street analysts expect these stocks to double in the near term.

Similarweb Ltd. (SMWB)

Based in Tel Aviv, Israel, SMWB provides website traffic solutions through AI-based data analytics worldwide. It offers four solutions: digital search intelligence, digital marketing, buyer intelligence, and investor intelligence. It serves businesses in various industries such as retail, travel, consumer finance, and logistics.

On May 16, 2022, SMWB announced its acquisition of Rank Ranger, a market leader in SEO and rank tracking, trusted by hundreds of businesses around the world. The acquisition expands its capabilities as a comprehensive SEO suite for businesses by combining its keyword research and analysis capabilities with Rank Ranger’s search term ranking tracking.

SMWB’s total revenue increased 25.6% year-over-year to $44.30 million for the fiscal first quarter ended March 31, 2022. Its total assets amounted to $280.96 million for the period ended March 31, 2022, compared to $227 million for the period ended March 31, 2022. December 31, 2021. Additionally, its loss per share decreased 56.4% from a year-over-year to reach $0.34.

For fiscal 2023, analysts expect SMWB’s EPS to grow 10.2% year-over-year. Its revenue is expected to grow 42.7% year-over-year to $196.42 million in fiscal 2022. The stock has lost 33% in the past three months to close yesterday’s trading session at $8.95. However, Wall Street analysts expect the stock to hit $18.50 in the short term, indicating a 106.7% upside potential.

taboola.com ltd. (TBLA)

TBLA operates an AI-based algorithmic engine platform globally. It offers Taboola, a platform that partners with websites, devices, and mobile apps to recommend editorial content and advertisements to users on the open web.

On May 26, 2022, TBLA announced that it had entered into a definitive agreement to acquire Gravity R&D to advance its AI, SmartBid and e-commerce personalization. It will also create and invest in a new research and development center at Gravity R&D headquarters in Hungary to accelerate the development of its products.

TBLA’s revenue increased 17.1% year-over-year to $354.70 million for the fiscal first quarter ended March 31, 2022. The company’s gross profit increased 25.2% year-over-year for reach $112 million. Also, its adjusted EBITDA was $34.90 million, representing a 3.9% year-over-year increase.

Analysts expect TBLA’s EPS to rise 243.5% year-over-year to $0.33 in fiscal 2022. The company’s revenue is expected to increase down 205.3% year over year to $374.62 million for the quarter ending September 30, 2022. The stock has lost 24.8%% in the past month to close the session trading yesterday at $2.96. Wall Street analysts expect the stock to hit $6.93 in the near term, indicating a upside potential of 134.1%.

SMWB stock closed at $8.88 on Friday, down -$0.07 (-0.78%). Year-to-date, the SMWB is down -50.42%, compared to a -17.67% rise in the benchmark S&P 500 over the same period.

About the Author: Nimesh Jaiswal

At Nimesh Jaiswal a fervent interest in the analysis and interpretation of financial data led him to a career as a financial analyst and journalist. The importance of financial statements in driving the price of a stock is the key approach he follows while advising investors in his articles. After…

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