These under-the-radar tech stocks may be worthwhile considerations since they trade at, what some consider to be, more realistic price points. These brands also have the potential to surge later in the year due to having more room to maneuver.
Nano Dimension (NNDM)
Nano Dimension (NASDAQ:NNDM) specializes in the 3D printing of electronics. In general, the 3D printing industry captivated investors’ attention and imagination back in 2019, but has since reduced in popularity due to the tropes and hype over artificial intelligence (AI) and related technologies.
There’s good reason to believe that NNDM could be a strong performer this year. For one, it reported year-over-year (YOY) revenue growth of 22% in the third quarter, bringing its total organic revenue growth to 33% for the year. However, it’s important to note that NNDM presently has negative earnings and cash flow. Though disruptive tech companies more commonly encounter this issue.
But if NNDM’s management guidance is anything to go by, now could be a good time to hop on board this company. In October, Yoav Stern, the CEO of Nano Dimension, stated, “Given our pipeline, we look forward to closing even more strategic new relationships, and ultimately hoping to finish 2023 as the best year and organic growth we have ever done.” Poised for growth, NNDM is a good contender for investors looking at under-the-radar tech stocks.
Cerence (CRNC)
Cerence’s (NASDAQ:CRNC) technologies power AI-driven interfaces for voice, touch, gesture and gaze innovations for the automotive market. This makes Cerence an important company that has a strong influence in both the electric and autonomous driving markets.
Cerence also has bright prospects for this financial year. Despite a 10% revenue decrease in fiscal year 2023, its net loss narrowed significantly by 82%. The company’s revenue also beat analyst expectations by 2.3%, and there’s a forecast of an average 11% annual revenue increase over the next three years.
Adding to the bull case is the fact that CRNC is expected to reach break-even profitability next year, and its trailing price-to-sales ratio is higher than its forward measure, meaning it could be undervalued based on both of these metrics. Analysts collectively predict that CRNC’s share could appreciate by 35.7% within the next twelve months.
Desktop Metal (DM)
Desktop Metal (NYSE:DM) is another 3D printing stock that warrants special attention. It specializes in 3D printing technology in the metal sector. The company’s technology enables the creation of complex metal parts with a level of efficiency and detail that traditional manufacturing methods can’t match. Alongside its printing technology, Desktop Metal invests in the development of advanced printing materials including various types of metals and alloys tailored for use in its 3D printing systems.
Of all the stocks on this list, DM stock has the biggest upside per analyst expectations. As a collective, analysts predict that its share will soar an estimated 302.89%, and this also comes with a buy recommendation. This recommendation comes amid its revenues surging 85.95% for 2022. Although its earnings and free cash flow are currently negative, its top line is expected to swell as well as see an improvement in its earnings per share (EPS).
On the date of publication, Matthew Farley did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.