While many investors may still be reeling from the chaos of 2022, the volatility also presents contrarians with upside (and discounted) prospects among compelling tech stocks to buy. True, red ink by itself doesn’t necessarily equate to opportunity. Still, the underlying innovation sector may not stay deflated indefinitely, even with recession fears on the horizon.

It’s not to dismiss the possibility of an economic downturn. However, several enticing tech stocks to buy already incurred substantial damage. With the weak hands flushed out, investors may look to jettison names from other sectors. Also, people utilize commercialized innovations frequently. Meltdown or not, demand for advanced technologies will almost certainly rise in the long run. Admittedly, these discounted ideas present choppiness concerns. Still, if you’ve got the stomach, these are the most convincing discounts among tech stocks to buy.

Cognizant Technology (CTSH)

Based in New Jersey, Cognizant Technology (NASDAQ:CTSH) is a multinational information technology services and consulting company. Cognizant offers several solutions, including business process services, cloud-computing applications, industrial automation, and artificial intelligence. Presently, the company commands a market capitalization of just under $30 billion.

To be sure, Cognizant – like so many tech stocks to buy if we’re going to compare – suffered steep losses in 2022. In the trailing year, CTSH stumbled and gave up 35.5% of its equity value. However, bullish traders appear to be attempting to reverse this narrative. During the past five days, CTSH managed to return 2.5%.

According to Gurufocus.com’s proprietary calculations for fair market value, Cognizant rates as significantly undervalued. Objectively, the market prices CTSH at 12.4 times forward earnings. In contrast, the sector median value is nearly 24 times. Moreover, the tech firm enjoys strong profitability metrics and stability in the balance sheet. On a parting note, since the first quarter of 2021, Cognizant beat its consensus targets for earnings per share. Therefore, it’s worth serious consideration for tech stocks to buy in January.

Kulicke and Soffa (KLIC)

Located in Singapore, Kulicke and Soffa Industries (NASDAQ:KLIC) may not attract the most attention among stateside investors. However, that could change soon, transitioning to one of the tech stocks to buy in part because of its relevance.

Per its public profile, Kulicke represents a leading provider of semiconductor, LED, and electronic assembly solutions serving the global automotive, consumer, communications, computing, and industrial markets. With such a wide footprint across diverse industries, even a global recession might not be enough to capsize KLIC.

To be fair, the market hasn’t been kind to Kulicke, with shares dropping over 24% of market value in the trailing year. However, in the past six months, KLIC gained nearly 15%. Some of this enthusiasm in the back half of 2022 centers on the fundamentals. In its most recent fiscal Q4 report, Kulicke beat analysts’ estimates for the top and bottom lines. According to TipRanks, analysts’ average price target pegs KLIC at $60, symbolizing 33% upside potential. That makes it one of the tech stocks to buy, particularly as Wall Street only prices shares at 6.4-times trailing earnings.

Silicon Motion (SIMO)

Operating out of Taiwan, Silicon Motion (NASDAQ:SIMO) focuses on developing NAND flash controller integrated circuits for solid-state storage devices. Presently, Silicon Motion features a market cap of just over $2.1 billion. Like other tech stocks to buy, SIMO endured a rough outing in 2022. In the trailing year, shares gave up nearly 30% of market value.

However, it’s also true that in recent sessions, bullish traders have attempted to right the ship. In the trailing month, SIMO gained a hard-fought 1%. In the long run, investors may be quite happy that they took a risk with Silicon Motion.

First, let’s consider what the analysts have to say. Although only four cover SIMO, it rates as a consensus strong buy: three individual buy ratings and one hold. The average price target stands at $88.25, up nearly 38% from the time of writing.

Second, SIMO offers an outstanding discount, with the market pricing shares at under 10 times forward earnings. In contrast, the sector median value is 16.7 times. Therefore, you shouldn’t ignore this opportunity among tech stocks to buy.

CoreCard (CCRD)

Calling Norcross, Georgia home, CoreCard (NYSE:CCRD) delivers a powerful and integrated solution for any type of card issuing program including complex credit, according to its website. To be clear, though, CoreCard may face difficult circumstances ahead. Credit card debt soared to all-time recorded highs recently, which points toward fundamental troubles in the consumer economy.

Still, there could be a bullish case here for the patient contrarian. According to Gurufocus.com, the underlying business features five green flags and no red flags. That’s actually a rarity for the investment resource. Among the attributes it identified are strong financial strength and low bankruptcy risk (via an Altman Z-Score of 16.3).

Objectively, CoreCard’s return on equity stands at over 32%, above 93% of the competition. This stat also reflects a superior capacity to convert equity financing into profits. As well, the market prices CCRD at 15.9 times trailing earnings, below the sector median of 25.5 times. Finally, hedge funds have started to build a position in CoreCard. If institutional investors think it’s one of the tech stocks to buy, it very well might be.

Photronics (PLAB)

A specialty tech firm, Photronics (NASDAQ:PLAB) focuses on photomask products and services. According to its website, it’s the worldwide leader in the space, with applications in mainstream nodes, integrated circuits, and flat panel displays. Right now, the company features a market cap of just over $1 billion. In the trailing year, PLAB lost 12.4%.

Still, in recent days, the bulls have been pushing to generate positive momentum. It’s quite possible that PLAB could be one of the top tech stocks to buy later this year because it enjoys some good stuff. For instance, Photronics’ three-year revenue growth rate stands at 19.2%, beating nearly 73% of its peers. On the bottom line, the company’s net margin pings at 14.4%, better than 61% of industry players.

Per Gurufocus.com’s proprietary FMV calculations, PLAB is modestly undervalued. Objectively, you can make the same case. Currently, shares trade at 8.6 times trailing earnings. Also, the market prices PLAB at 1.2 times sales. Both stats ping as undervalued against the underlying industry. On a final note, TipRanks states that insider buying sentiment is positive. That’s one more reason to consider PLAB as one of the tech stocks to buy.

ePlus (PLUS)

Headquartered in Herndon, Virginia, ePlus (NASDAQ:PLUS) is an IT assets-selling and financing company. Per its website, ePlus engineers transformative technology solutions for the most visionary companies in the world. These services encompass areas such as cloud computing, data centers, and cybersecurity, among many others.

Despite exceptional relevancies, PLUS did not quite get on the positive side of the price chart. In the trailing year, shares gave up over 18% of equity value – similar to the benchmark equities index. And if we’re speaking honestly, its most recent sessions present a choppy profile. Still, for those who want to take a risk among underappreciated tech stocks to buy, ePlus may be your ticket.

On an objective basis, ePlus offers an undervalued investment. Right now, the market prices PLUS at 11.5-times trailing earnings and 0.61-times sales. Both stats rate well below their respective sector median stats. Also, ePlus is priced at 2.2-times tangible book. The sector median is 3.4 times. Finally, TipRanks notes that hedge fund sentiment for PLUS pings is “positive.” It makes for an enticing idea among tech stocks to buy.

Ituran Location and Control (ITRN)

Saving the riskiest idea for last, Ituran Location and Control (NASDAQ:ITRN) operates out of Israel. The company provides stolen vehicle recovery and tracking services and markets GPS wireless communications products. Although a relevant business – especially with rising property crime – ITRN failed to attract Wall Street’s attention.

Well, it did attract its attention, just not in a good way. In the trailing year, shares fell nearly 21%. But the main problem is that recent sentiment has been sharply negative, with ITRN losing 10% in the past month. Still, for the risk-tolerant investor, it could be worth a look among speculative tech stocks to buy.

First, Ituran enjoys a solid balance sheet, particularly an above-average debt-to-equity ratio of 0.16 times. On the profitability spectrum, the company enjoys a net margin of nearly 13%, beating over 82% of the competition. Also, its ROE of 27% reflects a very high-quality business. Finally, the market prices ITRN at 11.6-times trailing earnings, below the sector median of 16.6 times. If you can stomach potential volatility in the near term, Ituran may be one of the tech stocks to buy.

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.