We recently published a list of 12 Best Affordable Tech Stocks to Buy According to Analysts. In this article, we are going to take a look at where Concentrix Corp. (NASDAQ:CNXC) stands against other best affordable tech stocks to buy according to analysts.
Stock affordability can be assessed in multiple ways. The most common approach is considering stocks with a market price below a certain threshold. Another method is evaluating stocks based on relative valuation metrics, such as a low price-to-earnings (P/E) ratio or other similar multiples. While we have earlier written about undervalued stocks based on P/Es (Read: Most Undervalued Tech Stocks to Invest), the focus for this article is a blend of both the approaches. Apart from low valuation, investors are often drawn to lower-priced stocks, particularly those under $50, because even small price movements can lead to significant percentage gains. Additionally, many investors prefer owning a larger number of shares in lower-priced stocks rather than a few shares in higher-priced ones.
However, a stock’s affordability alone does not determine its quality or long-term potential. Key factors such as financial stability, business execution, and overall market conditions play a crucial role in a stock’s performance.
Affordable tech stocks are often found in the small- and mid-cap space, particularly within the $10-$50 range, which is the focus of this article. Recently, interest in small- and mid-cap stocks has increased following the volatility in the Magnificent 7 (Mag 7) mega-cap tech stocks. Chris Retzler, portfolio manager of the Needham Small Cap Growth Fund, discussed the outlook for small-cap stocks on CNBC’s Squawk Box on January 17. He noted that while small-cap stocks have underperformed broader market indexes, recent momentum in the Russell 2000 suggests a potential shift. Chris emphasized that small-cap companies are seeking greater economic stability, which, once established, could drive broader market participation and growth. He also highlighted ongoing innovation in industries such as electric vehicles, semiconductors, and data infrastructure, which could benefit smaller firms.
Similarly, in mid-February, Gene Munster, managing partner at Deepwater Asset Management, discussed a potential shift from mega-cap tech stocks toward smaller technology companies. While he remains optimistic about the long-term prospects of the Mag 7, he believes that smaller tech firms—particularly those with a market cap below $500 billion could start outperforming as investors look for new growth opportunities.
