Although several methods exist to make you rich, few other segments offer ease of access and upside potential than millionaire-maker tech stocks. Tied to some of the most innovative firms in the business ecosystem, these securities might fly higher once broader conditions normalize. Of course, that’s a tricky matter at the moment.
Unfortunately, millionaire-maker tech stocks suffer disproportionately in the present environment. With the Federal Reserve committed to attacking inflation through benchmark interest rate hikes, the money stock shrunk in response. However, this action also kills incentives for expansionary initiatives which technology firms thrive on.
Still, another, more positive narrative rings true. Given the macroeconomic headwinds, millionaire-maker tech stocks find themselves on discount. If you have contrarianism running through your veins, these ideas may draw intrigue.
Micron Technology (MU)
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As one of the top producers of computer memory and data storage solutions, Micron Technology (NASDAQ:MU) commands exceptional relevance. At the same time, MU stock dropped nearly 39% in equity value on a year-to-date basis. Here’s the thing: the volatility isn’t exactly what you would call unwarranted.
With demand for computers and consumer electronics weakening, memory sales dropped significantly. Of course, this dynamic hurt Micron but it wasn’t an exclusive headwind. At the same time, management is getting ahead of the demand fallout, scaling back production of its chip wafers. In addition, Micro aims to cut capital expenses.
What that leaves us with is an undervalued investment. Currently, MU shares trade at 7.6-times trailing earnings, below the industry median price-earnings ratio of 17.3 times. Also, its Shiller PE ratio is 12 times, well below the industry median of 27.4 times. Combined with Micron’s excellent profit margins, MU has the makings of one of the millionaire-maker tech stocks to buy.
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Based in Puerto Rico, Evertec (NYSE:EVTC) is a leading electronic transactions and technology company. The company provides services across three key areas: merchant acquiring, payment processing, and business solutions. In addition, Evertec notes that it owns and operates the largest debit network in the Caribbean.
Unfortunately, the dour environment for the global economy negatively affected EVTC. Since the beginning of this year, shares gave up more than 34% of their equity value. Further, the company posted mixed results for its third quarter, beating revenue expectations but also missing the earnings target. Still, forward-looking investors may have a discount on their hands.
Fundamentally, Evertec enjoys excellent profit margins. For instance, its net margin of 41% beats out over 97% of its competitors. As well, the company enjoys a solid balance sheet. On top of this, the market prices EVTC at 9-times TTM earnings, which is comparatively undervalued.
In fact, Gurufocus.com notes that EVTC features eight good signs and no negatives, a rarity. Therefore, it belongs on your list of millionaire-maker tech stocks to buy.
Headquartered in Camarillo, California, Semtech (NASDAQ:SMTC) is a supplier of analog and mixed-signal semiconductors and advanced algorithms for consumer, enterprise computing, communications, and industrial end markets. Unfortunately, due to the aforementioned weaknesses in the global economy – particularly in the tech space – SMTC suffered sharp losses.
How sharp? We’re talking about an erosion of 67% of equity value since the beginning of the year, an absolute beatdown. Unfortunately, Semtech didn’t help its own cause out, downgrading expectations for its fiscal Q3. What made the matter particularly painful was that in Q2, the company did very well, generating record revenue and earnings.
Still, the organization, which specializes in applications for the Internet of Things, offers great value for contrarians. Similar to Evertec, Gurufocus.com notes that Semtech features five good signs with no blights. Again, it’s a rarity, reflecting the all-around fiscal resilience undergirding SMTC. Not surprisingly, then, the company deserves a look as one of the millionaire-maker tech stocks to buy.
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Headquartered in Norcross, Georgia, CoreCard (NYSE:CCRD) is a leading issuer-processor and provider of card management and transaction processing systems. It offers an array of account management and system of record solutions to support the complex requirements of the evolving global financial services industry. Sadly, the challenge with this narrative is that the global economy is also evolving but not in the right direction.
As you might expect, CCRD feels the heat. Since the start of this year, shares gave up 26% of equity value. Still, it’s wrong to overlook the company based on this performance metric. For instance, over the trailing month, CCRD gained a staggering 31%. Part of the reason could be the value proposition, with CoreCard trading at an attractive multiple.
Per data from Gurufocus.com, the market prices CCRD at 16-times TTM earnings, below the sector median of 25.6 times. As well, CoreCard features a strong balance sheet, with a cash-to-debt ratio of 12 times. That’s better than nearly 66% of the competition.
Finally, the investment resource identifies five good signs with CoreCard, with no negatives. Thus, it’s well worth considering for millionaire-maker tech stocks to buy.
United Microelectronics (UMC)
A leading global semiconductor foundry company, United Microelectronics (NYSE:UMC) undergirds various industries and innovations. Per its website, UMC in part provides diversified process technology solutions to power the IoT and wearable world. Additionally, the company plays a pivotal role in the mobile and wireless communication sectors.
Obviously, UMC does not represent an island to itself. With global macroeconomic pressures hurting many other millionaire-maker tech stocks to buy, I’m afraid UMC offers no exception in terms of volatility. Since the beginning of this year, shares plunged nearly 36%. Nevertheless, near-term momentum strengthened conspicuously, with UMC gaining almost 27% of equity value.
What drives this sentiment spike? Quite possibly, investors are getting word that UMC is criminally undervalued. Despite its stable balance sheet and strong growth and outstanding profitability metrics, the market prices UMC at only 9.7-times forward earnings, below the industry median of 15.3 times. However, this discount won’t last, making UMC one of the millionaire-maker tech stocks to buy now.
Surge Components (SPRS)
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Based out of Deer Park, New York, Surge Components (OTCMKTS:SPRS) specializes in technological components. From electronic switches to capacitors (electrolytic, film, and ceramic) to discrete semiconductors, Surge undergirds the needs of various industries and applications. Still, as an unsung hero, the underlying narrative presents great risks.
Since the Jan. opener, SPRS dropped about 16% in equity value. Structurally, SPRS being traded over the counter creates challenges for prospective investors. With an average share volume of 6,680, liquidity will be a concern. Also, at the time of writing, Surge features a market capitalization of less than $18 million. Of course, such nano-cap plays provide incredible upside in the context of millionaire-maker tech stocks. Still, you should recognize the dangers.
Despite some flaws, however, Gurufocus.com notes that the company features six good signs and no negatives. Therefore, SPRS represents a hidden gem among speculative millionaire-maker tech stocks to buy. Perhaps most notably, Surge commands a stable balance sheet, backed by a cash-to-debt ratio of 5 times.
Mind C.T.I. (MNDO)
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Based in Israel, Mind C.T.I. (NASDAQ:MNDO) is a global provider of billing and customer care solutions for voice, data, video, and content services. Trading hands for a little over two bucks, MNDO presents significant risks. For instance, since the start of the year, MNDO gave up 31% of its equity value. While other millionaire-maker tech stocks flourished in the trailing month, MNDO only gained less than 2%.
However, for the patient speculator, MNDO deserves a second look. Broadly speaking, the company slips well under the radar. Simultaneously, though, this quality enables traders to take moonshots smartly. One of the strongest attributes undergirding Mind is its balance sheet. With a cash-to-debt ratio of 17.7 times (above nearly 70% of the competition), MNDO can weather economic turbulence.
Additionally, the company enjoys outstanding profit margins. For example, its net margin stands at 25%, beating out over 94% of its rivals. Enticingly, the market prices MNDO at only 8-times trailing earnings, below the sector median of 25.6 times.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
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