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Zacks Value Investor Highlights: Microchip, Amkor, CommScope, Dropbox and Celestica

·6 min read

For Immediate Release

Chicago, IL – June 26, 2020 – Zacks Value Investor is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here:


5 Cheap Tech Stocks in 2020

Welcome to Episode #195 of the Value Investor Podcast.

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Market Edge From Zacks · 5 Cheap Tech Stocks in 2020

Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks.

Technology stocks are soaring and are again the darlings of Wall Street.

Many are complaining that tech is overvalued and too hot to handle. We know the stocks that are soaring, such as Zoom Video.

But are there any value stocks in the technology sector?

Screening for Tech Values

It’s pretty easy to find technology stocks as you can screen using Zacks Sectors for Computer & Technology.

Adding a Zacks Rank of #1 (Strong Buy) and #2 (Buy) hopefully will provide companies with rising earnings estimates.

To find value, Tracey screened with a P/E under 20.

That screen returned just 29 stocks.

There is value after all.

But to get companies with growth, you can screen with the PEG ratio, instead of the P/E ratio.

This was a much narrower screen which resulted in just 8 companies with value PEG ratios under 1.0.

5 Cheap Tech Stocks Right Now

1.       Microchip Technology MCHP is a leading provider of smart, connected and secure embedded control solutions. On June 2, it updated its financial outlook for the fiscal first quarter which ends on June 31 and said it was seeing better-than-expected sales. It raised its quarterly sales outlook. Shares are up 54% over the last 3 months but are still down 3% on the year. The company is trading with a forward P/E of 18.2.

2.       Amkor Technology AMKR is in outsourced semiconductor packaging and tech services. Earnings are expected to rise 25% in 2020 despite the pandemic. Impressive. Shares are up 71% in the last 3 months but are still down 8.2% year-to-date. It has a forward P/E of 17.6.

3.       CommScope COMM is a global leader in infrastructure solutions for communications networks including broadband. Shares are down 40% year-to-date, although they’re off their coronavirus lows. It’s cheap, with a forward P/E of just 7.3.

4.       Dropbox DBX which operates a global collaboration platform is expected to grow earnings by 52% in 2020 as sales are forecast to jump 13.7%. That’s impressive during a pandemic. It has a PEG ratio of just 0.96. A PEG ratio under 1.0 usually indicates a company is undervalued.

5.       Celestica CLS is a Canadian leader in design, manufacturing and supply chain solutions. It’s a small cap with a market cap of just $826 million. Earnings are expected to rise 14.8% in 2020. Shares have been hot over the last 3 months, soaring 127%. But they still trade with a forward P/E of just 10.7.

What else should you know about finding value in technology stocks?

Tune into this week’s podcast to find out.

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Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor of the Insider Trader and Value Investor services. You can follow her on twitter at @TraceyRyniec and she also hosts the Zacks Market Edge Podcast on iTunes.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Microchip Technology Incorporated (MCHP) : Free Stock Analysis Report
Amkor Technology, Inc. (AMKR) : Free Stock Analysis Report
Celestica, Inc. (CLS) : Free Stock Analysis Report
CommScope Holding Company, Inc. (COMM) : Free Stock Analysis Report
Dropbox, Inc. (DBX) : Free Stock Analysis Report
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