Smart Choices: 3 Under-$12 Tech Stocks to Buy Now

Three stocks trading under $12 are the best buys if you’re investing in the technology sector.

| More on:
Woman has an idea

Image source: Getty Images

Canadians investing in technology stocks this year have three excellent buying opportunities. BlackBerry (TSX:BB)(NYSE:BB), Absolute Software (TSX:ABST)(NASDAQ:ABST), and Real Matters (TSX:REAL) are trading below $12 per share. Scoop them now before the prices soar sky high soon.

Multiple growth catalysts

BlackBerry, the former smartphone maker, is known today for “intelligent security everywhere.” The $6.63 billion company is now into enterprise cybersecurity, secure embedded systems, and critical event management. In Q3 fiscal 2022 (quarter ended November 30, 2021), it reported solid sequential billings and revenue growth for the Internet of Things (IoT) and cybersecurity businesses.

The company posted a net income of US$74 million versus the US$144 million net loss in the same quarter last year. John Chen, BlackBerry’s chairman and CEO, said it beat earnings expectations, despite ongoing investments to drive future top-line growth.

BlackBerry is a steal at $11.56 per share, given its growth prospects. The company recently signed several partnerships, including a tie-up with PATEO. BlackBerry and the China-based connected car company will develop in-vehicle services. Management’s collaboration with the University of Waterloo’s Water Institute will tackle water-related challenges that hamper the ecosystem and climate conditions.

Meaningful opportunities ahead

Absolute Software is the world’s only firmware-embedded endpoint visibility and control platform. The $530.38 million company is also the leader in Endpoint Resiliency. It helps businesses and organizations recover and resume normal operations amid security breaches.

The share price of $10.65 (-10.2% year to date) is a good entry point. Market analysts have a 12-month average price target of $18.96, or upside potential of 78.03%. The overall return should be higher, since this tech stock pays a 3% dividend.

In Q1 fiscal 2022 (quarter ended September 30, 2021), revenue and adjusted revenue increased 53% and 72% versus Q1 fiscal 2021. Christy Wyatt, Absolute Software’s president and CEO, said, “In the work-from-anywhere world we now live in, we’re seeing strong demand for our products and services.”

Management is confident about the meaningful opportunities ahead, as Absolute brings to market its unique offerings to the high-growth Secure Access Service Edge (SASE) and Zero Trust markets.

Record results

Real Matters is a leading network management services platform for the mortgage and insurance industries. The $612.62 million company reported record results in fiscal 2021 (year ended September 30, 2022). Its CEO, Brian Lang, said, “We continue to execute on our plan with a long-term view of the business.”

Management is more confident that ever in Absolute’s ability to achieve its fiscal 2025 objectives of doubling the U.S. Appraisal market share and tripling the U.S. Title market share from fiscal 2020 levels. Lang added, “Our business has demonstrated considerable growth since going public in 2017.”

According to Lang, consolidated revenues and net revenues have increased 66% and 78%, respectively, while adjusted EBITDA has grown five-fold. During the year, Real Matters launched 14 and 12 new lenders in U.S. Appraisal and Title, respectively. Based on analysts’ price forecasts, the $7.00 share price could climb 67.86% to $11.75 in 12 months.

Growth stocks

The technology sector could produce a new superstar this year. BlackBerry is due for a break out, while Absolute Software and Real Matters are previous TSX30 winners. All three are excellent choices for growth investors.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Absolute Software Corporation and Real Matters Inc.

More on Investing

Arrowings ascending on a chalkboard

5 Canadian Stocks That Have Gained Value Year to Date

Although many Canadian stocks have sold off this year, and by a significant amount, here are five that have actually…

Read more »

Filling up at the gas pumps.
Energy Stocks

Gas Prices Are Hitting Record Highs: 2 Stocks to Buy Now!

Buy Suncor Energy stock, Canada's integrated oil and gas giant that's benefitting immensely, as gasoline prices continue to soar.

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Bank Stocks

A Different Bank for a Comfortable Retirement

Want a comfortable retirement? Investing in this different bank today can help you reach that goal through a solid income…

Read more »

Money growing in soil , Business success concept.
Dividend Stocks

Top Canadian Dividend Stocks to Buy and Hold for the Long Term

These Canadian companies have been paying dividends for more than four decades and have been consistently growing the same.

Read more »

Bank Stocks

Bank of Montreal (TSX:BMO) Raises Dividend: Is the Stock a Buy?

Bank of Montreal is about to get a lot bigger. Should you buy the stock?

Read more »

man window buildings

Where Do Economists Expect Canadian Housing Prices to Fall Most?

Canadian housing prices may be falling -- in some regions, more than others -- but there are still plenty of…

Read more »

Business success with growing, rising charts and businessman in background
Energy Stocks

3 Hydrogen Stocks Set to Become Major Multi-Baggers

These three hydrogen stocks could certainly achieve multi-bagger status in the years to come after they overcome the present-day hurdles.

Read more »

Stocks for Beginners

Starting an Investment Portfolio? Buy These 3 Stocks!

Interested in getting a start in the stock market? Buy these three stocks today!

Read more »