Stocks with low price-to-earnings (P/E) ratios are particularly attractive to long-term investors. As the valuations of these stocks rise over time, they tend to offer appealing returns. Therefore, investors could consider looking into low P/E tech stocks, HP Inc. (HPQ),  Genpact Limited (G), and Photronics, Inc. (PLAB), which are too cheap to ignore for 2025.

Companies prioritizing digital transformation, leveraging advanced technologies to drive growth and reduce costs, increasing adoption of cloud technologies, and utilizing business intelligence for forecasting and optimizing operations to boost revenues are some of the key factors and trends propelling the expansion of the IT services market.

Another driving force behind the market is the growing emphasis on cybersecurity. The escalating frequency and sophistication of cyberattacks have raised awareness about the importance of robust cybersecurity measures. Therefore, the global information technology market is projected to grow at a CAGR of 11% by 2032.

Considering these conducive trends, let’s examine the three best tech stocks in detail:

HP Inc. (HPQ)

HPQ provides personal computing and other digital access devices, imaging and printing products, and related technologies, solutions, and services globally. The company operates in three segments: Personal Systems; Printing; and Corporate Investments.

In terms of forward non-GAAP P/E, HPQ is trading at 9.46x, 63.3% lower than the industry average of 25.74x. Likewise, the stock’s forward EV/Sales multiple of 0.72 is 79% lower than the industry average of 3.46. Similarly, its forward Price/Sales of 0.58x is 82.7% lower than the 3.35x industry average.

On October 30, HPQ announced a new HP Amplify program for partners, HP Amplify AI, a customizable program designed to improve partner capabilities in achieving positive AI outcomes, offering AI guidance, tools, resources, training, and certification.

HPQ also announced other enhancements, including new AI-powered tools, refreshed HP Future Ready AI MasterClass content in multiple languages, and global expansion of the HP Business Partner Program.

For the fourth quarter, which ended October 31, 2024, HPQ reported total net revenue of $14.06 billion, which is 4% higher than the prior quarter. Its non-GAAP earnings from operations of $1.20 billion indicate growth of 10.2% from the quarter-ago value. Furthermore, the company’s non-GAAP net earnings were $900 million and $0.93 per share, up 9.9% and 12% quarter-on-quarter, respectively.

As per the fiscal 2025 first-quarter forecast, HPQ projects non-GAAP net EPS in the range of $0.70 to $0.76. Also, for the full fiscal 2025, the company expects non-GAAP net EPS between $3.45 and $3.75.

Analysts expect HPQ’s revenue for the second quarter (ending April 2025) to increase 1.9% year-over-year to $13.05 billion, while the company’s EPS for the same quarter is expected to grow 4.2% year-over-year to $0.85. Furthermore, the company surpassed the consensus revenue estimates in three of the trailing four quarters.

Shares of HPQ have surged 7.9% over the past year to close the last trading session at $33.45.

HPQ’s bright prospects are reflected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, each weighted to an optimal degree.

The stock has a B grade for Value, Momentum, and Quality. Within the Technology – Hardware industry, HPQ is ranked #7 out of 41 stocks.

Click here to access additional HPQ ratings for Sentiment, Growth, and Stability.

Genpact Limited (G)

G provides business process outsourcing and information technology services in India, the rest of Asia, North and Latin America, and Europe. It operates through three segments: Financial services; Consumer and Healthcare; and High Tech and Manufacturing.

In terms of forward non-GAAP P/E, G is trading at 13.50x, which is 33.3% lower than the industry average of 20.23x. Also, its forward EV/EBITDA multiple of 9.99x is 16.4% lower than the industry average of 11.95.

In the third quarter that ended on September 30, 2024, G’s net revenues were reported at $1.14 billion. Its income from operations came in at $165.69 million. The company’s net income and net income per share came in at $117.59 million and $0.64, respectively.

Analysts expect G’s revenue and EPS for the fiscal first quarter (ending March 2025) to increase 7.3% and 7% year-over-year to $1.23 billion and $0.78, respectively.

The stock gained 36.7% over the past nine months to close the last trading session at $43.51.

G’s POWR Ratings reflect robust prospects. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system. G has a B grade for Momentum and Quality. It is ranked #9 out of 38 stocks in the Outsourcing – Business Services industry. 

Beyond what is stated above, we’ve also rated G for Sentiment, Growth, Stability, and Value. Get all G ratings here.

Photronics, Inc. (PLAB)

PLAB is engaged in the manufacture and sale of photomask products and services internationally. The company offers photomasks that are used in the manufacture of integrated circuits and flat panel displays (FPDs) and to transfer circuit patterns onto semiconductor wafers and FDP substrates.

In terms of forward non-GAAP P/E, PLAB is trading at 11.70x, 54.5% lower than the industry average of 25.74x. Also, the stock’s forward EV/EBIT multiple of 5.56 is 74.9% lower than the industry average of 22.20. Further, its forward Price/Sales of 1.70x is 49.2% lower than the industry average of 3.35x.

During the fourth quarter that ended October 31, 2024, PLAB reported revenue of $222.63 million, and its gross profit came in at $82.30 million. Also, net income attributable to PLAB was $33.87 million. The company’s EPS was reported at $0.54.

In addition, as of October 28, 2024, the company’s cash and cash equivalents stood at $598.49 million, compared to $499.29 million as of October 31, 2023.

Street expects PLAB’s revenue for the second quarter (ending April 2025) to grow 3.7% year-over-year to $225 million, and its EPS is expected to grow 13% year-over-year to $0.52 for the same quarter. For the fiscal year (ending October 2025), the company’s revenue and EPS are expected to increase 5.5% and 2.4% from the prior year to $915 million and $2.10, respectively.

Over the past month, PLAB’s stock has surged 2.8% year-to-date to close the last trading session at $24.22.

PLAB’s POWR Ratings reflect its bright outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.

PLAB has a B grade for Value, Quality, and Sentiment. It is ranked #3 out of 90 stocks in the Semiconductor & Wireless Chip industry.

For additional PLAB’s Stability, Growth, and Momentum, click here.  

What To Do Next?

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HPQ shares were trading at $33.12 per share on Friday afternoon, down $0.33 (-0.99%). Year-to-date, HPQ has gained 1.50%, versus a -0.99% rise in the benchmark S&P 500 index during the same period.

About the Author: Nidhi Agarwal

Nidhi is passionate about the capital market and wealth management, which led her to pursue a career as an investment analyst. She holds a bachelor's degree in finance and marketing and is pursuing the CFA program. Her fundamental approach to analyzing stocks helps investors identify the best investment opportunities. More...

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