Amid a flight to safety across the broader market, investors are now eyeing up undervalued tech stocks bargains. The companies on this list were chosen due to their high growth potential as well as them trading at undervalued multiplies.
While most investors are parking their cash in the Majestic 7 to get returns, there exists great opportunities elsewhere. The benefit of investing in these lesser-known tech stocks is that they may be less efficiently priced. This means they may be great value plays as well.
So, here are the best tech stocks to buy for October that have skyrocketing potential.
Top Tech Stocks: Fortinet (FTNT)
Fortinet (NASDAQ:FTNT) is a global leader in cybersecurity, known for its comprehensive “Security Fabric.” Security Fabric provides end-to-end security services for cloud-based platforms, on-premise hardware and Internet of Things devices.
The bull case for FTNT stock is bolstered by significant institutional investment. This happened with major firms substantially increasing their holdings. Fortinet has reported robust Q1 earnings, with revenues and operating income witnessing substantial YoY growth.
Also, Fortinet’s aggressive share buyback strategy, high ROIC, and strong financial health, marked by consistent revenue, gross profit and free cash flow growth, further strengthen the investment thesis. This makes it one of those tech stocks to buy.
Garmin (NYSE:GRMN) is a tech device giant that has shown resilience despite challenges such as declining sales in certain segments. The company has managed to capture market share across various tech niches, including fitness trackers and smartwatches.
The thesis for GRMN stock is a simple one. It reported a Q2 2023 pro-forma earnings of $1.45 per share, a 1% YoY improvement, beating estimates. Net sales were $1.32 billion, a 6% increase YoY, driven by strong performances in the Fitness and Auto OEM segments.
Furthermore, the company has a solid financial position, with significant cash and cash equivalents, and has been actively returning value to shareholders through dividends and share repurchases. Garmin has raised its 2023 revenue guidance to $5.05 billion, reflecting optimism in its business outlook.
It’s therefore likely that GRMN stock will continue to outperform, thus making it one of those tech stocks to buy.
Zoom Video Communications (ZM)
Zoom Video Communications (NASDAQ:ZM) has maintained a strong presence across various sectors, including business, education, religion and sports. It continues to be the go-to video communication provider, showing resilience and stability.
The bull case for ZM revolves around its strong balance sheet with about $6 billion in cash, allowing for potential acquisitions. Despite the end of the coronavirus emergency, Zoom continues to innovate, integrating AI tools like the AI Companion and Docs to enhance customer retention and productivity.
ZM stock also retains solid market share in video conferencing, which makes it one of those tech stocks investors should keep on their radar.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines