What technology stocks are undervalued today?
9/24/2025 01:36pm
**Quick take:**
Based on today’s market snapshot, a handful of mid-cap and small-cap technology names screen as **meaningfully undervalued**—trading at a low P/E yet still growing earnings fast enough to drive PEG ratios below 1.0 📉🚀
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### 10 Tech Stocks That Look Cheap Right Now
| Ticker | Company | TTM P/E | PEG | 5-Year EPS CAGR | Market Cap (US$) |
|-------|---------|--------|-----|-----------------|------------------|
| UPWK | Upwork | 10.6× | 0.03 | 109 % | $2.6 B |
| DXC | DXC Technology | 6.5× | 0.23 | 5.8 % | $2.4 B |
| YELP | Yelp | 13.3× | 0.44 | 2.9 % | $2.0 B |
| NTGR | NETGEAR | 13.1× | 0.60 | 1.3 % | $0.8 B |
| CTLP | Cantaloupe | 12.1× | 0.04 | 4.7 % | $0.8 B |
| IBTA | Ibotta | 7.6× | 0.13 | 0.8 % | $0.7 B |
| FUFU | BitFuFu | 12.6× | 0.03 | 1.0 % | $0.6 B |
| FEIM | Frequency Electronics | 13.3× | 0.26 | 1.1 % | $0.29 B |
| INSE | Inspired Entertainment | 4.3× | 0.01 | 1.4 % | $0.26 B |
| SQNS | Sequans Communications | 2.6× | 0.01 | 2.1 % | $0.14 B |
**Why they matter**
1. **Low absolute valuation** – All trade below 15× TTM earnings, well under the S&P 500’s ~22× multiple.
2. **Growth still intact** – Positive 5-year EPS growth suggests their low P/E is not merely a by-product of collapsing earnings.
3. **PEG < 1** – Classic “growth at a reasonable price” signal; you’re paying less than $1 for each percentage point of expected growth.
**Caveats to keep front-of-mind**
• Most names above the $2 B mark (UPWK, DXC, YELP) offer better liquidity; the smaller caps can be volatile and thinly traded.
• PEG ratios can swing quickly if analyst growth estimates are revised—especially for cyclical or niche players.
• Cheap does **not** guarantee upside; always check debt levels, cash flow quality, and competitive positioning.
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### How to dig deeper 🔍
1. **Qualitative read-throughs** – Scan earnings calls for evidence that margins and cash conversion back up the headline EPS growth.
2. **Balance-sheet check** – Favor names where net debt/EBITDA is < 2× to avoid “value traps” hiding behind leverage.
3. **Catalyst mapping** – Identify product launches or contract wins (e.g., Upwork’s enterprise expansion, DXC’s cost-takeout programs) that could unlock the discount.
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### Bottom line
If you’re hunting for mispriced growth in tech, start with the list above—then run a deeper fundamental screen before committing capital. Prices are appealing, but make sure each story lines up with **your** risk tolerance and time horizon. 🛡️💡
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Quick question to fine-tune future ideas: *Are you aiming for near-term swing trades on these bargains, or do you prefer holding undervalued tech names for a multi-year re-rating?* 🤔