Though investors rotated away from expensive technology stocks earlier this month, according to Kyle Rodda, a market analyst at IG Australia, “The narrative over the last couple of days has been earnings focused and tech stocks have led the charge. There’s momentum there, simple as that.”
Furthermore, the Nasdaq Composite has jumped to 15,021.81 recently. Investors’ interest in the tech stocks is evidenced by the Technology Select Sector SPDR Fund’s (XLK) 4.7% returns over the past three months. Consistent innovations in artificial intelligence (AI) and the internet of things (IoT), among others, are expected to drive the technology sector’s growth.
So, we think it could be wise to add tech stocks Summit Wireless Technologies, Inc. (WISA), Safe-T Group Ltd (SFET), and Auddia Inc. (AUUD) to one’s watch list now. These stocks are trading below $5, and Wall Street analysts expect them to deliver significant returns in the near term.
Summit Wireless Technologies, Inc. (WISA)
WISA in San Jose, Calif., develops, manufactures, and sells modules and integrated circuits for several countries’ home entertainment and wireless audio markets. It also offers TX modules for integration into televisions, audio-visual receivers, and media hubs.
On July 21, 2021, WISA launched its WiSA SoundSend Certified program. Tony Ostrom, WISA’s President, said, “Wiser is helping its TV manufacturing members across the globe easily acquire this standout certification as they’re witnessing SoundSend proves to be an integral part of seamless, wireless home cinema while allowing connection to incredible speaker solutions from a large and growing roster of WiSA members.”
For the second quarter, ended June 30, 2021, WISA’s revenue increased 354.3% year-over-year to $1.58 million. The company’s gross profit came in at $459,000, representing a 3,725% year-over-year rise. In addition, its total assets were $15.88 million for the period ended June 30, 2021, versus $11.3 million for the period ended December 31, 2020.
WISA’s revenue is expected to be $6.85 million in its fiscal year 2021, representing a 184.9% year-over-year rise. The company’s EPS is expected to increase 59.1% in the current year.
Over the past year, the stock has gained 19.7% in price to close yesterday’s trading session at $2.73. Wall Street analysts expect the stock to hit $5.75 in the near term, which indicates a potential upside of 110.6%.
Safe-T Group Ltd (SFET)
Headquartered in Herzliya, Israel, SFET provides intelligent data collection and cybersecurity solutions internationally. The company serves finance, healthcare, retail sectors, government agencies, commercial companies, and educational institutions.
On September 30, 2021, SFET completed the development of iShield, its latest and most advanced cybersecurity product for consumers. SFET’s CEO, Shachar Daniel, said, “We are excited to bring our iShield technology to the market to provide a critical new level of protection for users, and we look forward to its commercial launch through our online marketing channels by the beginning of 2022.”
SFET’s revenue increased 65.6% year-over-year to $1.78 million for its fiscal second quarter, ended June 30, 2021. Its gross profit increased 58.8% from the same period last year to $805,000. Its total assets increased 41.6% year-over-year to $30.57 million.
Analysts expect SFET’s revenue to be $14.57 million for its fiscal 2022, representing a 58.9% year-over-year rise. The company’s EPS is expected to increase 20.6% in the next year.
Over the past year, the stock has gained 1.9% in price to close yesterday’s trading session at $1.09. Wall Street analysts expect the stock to hit $2 in the near term, which indicates a potential 83.5% upside.
Auddia Inc. (AUUD)
AUUD develops software products for the audio and podcast markets. The Boulder, Colo.-based company’s flagship product is Auddia, a subscription-based mobile application that enables users to listen to various streaming AM/FM radio stations without commercials.
On May 13, 2021, AUUD partnered with Amateuro Sonoma Media LLC. and Lakes Media Network to launch its commercial-free, premium listening experience. Jeff Thramann, founder and executive chairman of AUUD, said, “We have been filing patents and advancing our AI-for-audio platform for a number of years. Through the process, we have been in dialog with multiple leading broadcasters who have consistently advised us to partner with influential independent broadcasters to bring the Auddia platform to market.”
AUUD’s cash came in at $4.58 million for the period ended June 30, 2021, compared to $117,914 for the period ended December 31, 2020. Its total assets were $9.22 million, compared to $2.31 million in the prior year period, and its total current assets came in at $6.58 million, versus $118,042 for the same period last year.
For its fiscal year 2021, analysts expect AUUD’s EPS to increase 94.4% year-over-year. Its revenue is expected to be $2.34 million for its fiscal period ending December 2022.
Over the past six months, the stock has gained 6% in price to close yesterday’s trading session at $2.47. Wall Street analysts expect the stock to hit $9 in the near term, which indicates a potential 264.4% upside.
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WISA shares were trading at $2.60 per share on Friday afternoon, down $0.13 (-4.76%). Year-to-date, WISA has declined -26.55%, versus a 22.17% rise in the benchmark S&P 500 index during the same period.
About the Author: Riddhima Chakraborty
Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...
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