Under-the-radar tech stocks offer great growth opportunities. These stocks have been hammered as a result of the bear market.
This presents a unique opportunity for savvy investors to buy low and watch their investments grow over time. Even though tech stocks carry higher risk under the radar, the potential rewards are greater. With a little research, you can find many investment options that will help you achieve your financial goals.
There are always new names to watch on the stock market, especially in the technology sector. Here are three under-the-radar tech stocks to keep an eye on:
| CRWD | Crowdstrike Stocks | $145.98 |
| ORCL | oracle | $64.31 |
| ZS | Zscaler | $135.31 |
CrowdStrike Holdings (CRWD)
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TipRank’s 12-month consensus price target: $236.64
Crowdstrike Stocks (NASDAQ:CRWD) is a cybersecurity company that went public in 2019. It has seen strong growth in recent years, with its revenue increasing from $52.75 million in 2017 to $1.5 billion in 2022.
The growth is not surprising, especially considering the size of the cybersecurity market. According to a report by statisticsCybersecurity market revenue is expected to reach $159.80 billion by 2022. It is expected to grow 13.33% per year through 2027, totaling $298.70 billion from 2022-2027. CrowdStrike has a tiny slice of this market, so there’s plenty of room for growth.
At the moment, the cybersecurity company is executing its strategy well. You can look at the results for the second quarter of 2023 to confirm this. CrowdStrike reported a 58% year-over-year increase in revenue to $535 million. CrowdStrike’s subscription revenue grew 60% last year to $506 million, accounting for 95% of total revenue.
Additionally, the 1,741 new subscriptions are an impressive jump from last year. CrowdStrike’s total subscriber count is now close to 20,000.
CrowdStrike’s success is a huge win for the company’s founder and CEO, George Kurtz, who built his career on the vision that CrowdStrike would become a leader in cybersecurity. With its strong quarterly results, CrowdStrike is on track to realize Kurtz’s vision.
As the global economy increasingly relies on digital infrastructure, demand for CrowdStrike’s services will continue to grow. As a result, the company is one of a handful of under-the-radar tech stocks poised for game-changing growth in the years to come.
Oracle (ORCL)
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TipRank’s 12-month consensus price target: $90.05
A name that often comes up when it comes to under-the-radar tech stocks is oracle (NYSE:ORCL). However, the company has consistently delivered a strong performance. Oracle has a strong market position in enterprise software and is expanding its reach into new markets such as cloud computing and artificial intelligence.
In particular, the switch to cloud computing has paid off. Oracle’s earnings for the period ended August 31 were $1.03 per share. Cloud services and licensing support brought in $8.42 billion, while total revenue was $11.45 billion. According to Oracle, earnings would have been 8 cents higher without the strong dollar.
Oracle CEO Safra Catz revealed the company’s growing applications and infrastructure cloud business now accounts for 30% of total revenue. She predicts that cloud companies will take an increasing share of the overall business, which should lead her to double-digit growth.
Looking ahead, Oracle expects earnings per share to be in the range of $1.16 to $1.20, which translates to an expected revenue increase of 15% to 17%, or 21% to 23% if you choose to use the constant currency basis.
Additionally, we’ve already seen a tremendous impact from Oracle’s $28 billion acquisition of healthcare data software maker Cerner. It contributed $1.4 billion to operations in the most recent quarter alone. Catz believes the Cerner acquisition will be positive for revenue and EPS growth in the coming quarters.
Oracle has never cut its dividend in 13 years and has been on a payout streak for nine years. The current yield is low at 1.96%. But there’s plenty of room for that number to grow, as Oracle’s payout currently sits at 57%.
Zscaler (ZS)
Source: Various Photographs / Shutterstock.com
TipRank’s 12-month consensus price target: $220.71
Zscaler (NASDAQ:ZS) is a leading cloud services company providing security, analytics and management tools.
The range of security solutions includes web security, email security, mobile device management and data protection.
Zscaler is one of the hottest under-the-radar tech stocks out there. The company’s platform offers businesses a secure web gateway, mobile security and firewall capabilities. Over 6,700 customers use the Zscaler platform.
Zscaler offers an essential service in the cloud age: security. The need for secure cloud services will only increase as more devices connect to the internet and rely on remotely hosted applications. As a result, Zscaler’s business thrives during times of economic downturn because its customers want protection from cyberattacks, even when there is no demand during those times.
Zscaler is also growing rapidly, with revenue up 61% year over year in fiscal 2022, which ended July 31. Zscaler’s strong growth prospects and market-leading platform make it one of the most interesting tech stocks to stay under the radar on Clock.
At the time of publication, Faizan Farooque held (neither directly nor indirectly) positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com’s publicity guidelines.
