In This Article:
We recently compiled a list of the 12 Best Tech Stocks to Buy Right Now Under $10. In this article, we are going to take a look at where Yext Inc. (NYSE:YEXT) stands against the other tech stocks under $10.
Our list today highlights stocks that are priced under $10 and can offer opportunities for growth. These stocks offer diversification away from the typical large and mid-cap names with the use of lower capital. These stocks often belong to companies that are trying to create niche businesses or are in various stages of product evolution, including emerging growth firms and established businesses, giving tough competition to larger rivals. In our view, this space has the potential for high returns, particularly if these companies can successfully execute their business strategies and capitalize on market trends.
In the technology sector, many undervalued stocks are well-positioned to benefit from the ongoing trends of digital transformation, and transition to cloud and AI. Companies offering innovative software solutions, cybersecurity, and cloud services are anticipated to thrive as businesses continue to invest in technology to enhance their competitive position and security. By identifying promising companies in these areas, investors can potentially achieve good returns although with a little higher risk. That said, we believe that stock selection remains crucial in the small-cap space due to the volatility of these names. For comparison, the S&P SmallCap600 Index has underperformed the broader S&P500 Index over the last 3, 5, and 10 years which indicates that you might not get enough returns if you take a broader approach.
The technology sector continues to be driven by rapid innovation and the adoption of cutting-edge technologies. Advances in technology are significantly impacting lives, industries, and economies worldwide. The integration of AI and ML is revolutionizing workflows, enhancing productivity, and creating new revenue opportunities. Organizations globally are undergoing digital transformations to stay competitive, streamline operations, improve customer engagement, and drive innovation in their products and services.
Our Methodology
To shortlist the 12 Best Tech Stocks to Buy Right Now Under $10, we screened technology stocks with current share price below $10. We overlaid this criterion with additional criteria of market capitalization of at least $300 million and a potential upside of greater than 10%. The stocks were then arranged in ascending order of the number of hedge fund holders for each company, based on hedge fund data from Insider Monkey’s database.