Although the tech-heavy Nasdaq declined significantly earlier this month, it advanced 0.71% yesterday, representing its fifth straight day of gains, its longest daily winning streak since late August. Last month, Goldman Sachs Group, Inc…
(GS) advised investors to hold on to high-growth tech stocks for long-term growth, despite market volatility.
Furthermore, as several companies extend their work-from-home arrangements due to uncertainty related to COVID-19, and businesses continue with their digital transformations, the technology industry could continue to grow for the foreseeable future. Investors’ interest in the tech stocks is evident in the Technology Select Sector SPDR Fund’s (XLK) 7.1% returns over the past three months and more than 2% gains over the past month.
So, we think it could be wise to bet on quality tech stocks eGain Corporation (EGAN – Get Rating), AstroNova, Inc. (ALOT – Get Rating), and inTEST Corporation (INTT – Get Rating). They are lesser-known but have significant growth potential. Moreover, they are rated A (Strong Buy) in our POWR Ratings system.
eGain Corporation (EGAN – Get Rating)
EGAN in Sunnyvale, Calif., develops, licenses, implements, and supports customer service infrastructure software solutions worldwide. It provides unified cloud software solutions to automate, augment, and orchestrate customer engagement. Its market capitalization is $328.34 million.
On September 1, 2021, Ashu Roy, EGAN’s CEO, said, “We are taking actions to translate our product leadership into market dominance in knowledge management and digital customer engagement, including continuing to invest in the coming year to further build out our platform API offerings, develop our partner ecosystem and expand our market coverage. We expect these investments to accelerate our growth trajectory in fiscal 2022 and beyond.”
EGAN’s total revenue increased 6.4% year-over-year to $20.25 million in the fourth quarter ended June 30, 2021. Its gross profit came in at $15.17 million, up 8.3% year-over-year. The company’s total assets were $114.56 million for the period ended June 30, 2021, compared to $93.70 million for the period ended June 30, 2020. Also, its non-GAAP EPS remained flat in the quarter at $0.08.
Analysts expect EGAN’s revenue and EPS to increase 16.6% and 1,000%, respectively, year-over-year to $103.93 million and $0.22 in its fiscal year 2023. In addition, it has surpassed the consensus EPS estimates in three of the trailing four quarters. Over the past six months, the stock has gained 9.1% in price to close yesterday’s trading session at $10.47.
EGAN’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall A rating, which indicates a Strong Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 distinct factors, each with its own weighting.
EGAN has an A grade for Quality, and a B grade for Stability, Value, and Sentiment. Within the Software – Application industry, it is ranked #4 out of 160 stocks. Click here to see EGAN’s ratings for Growth and Momentum as well.
Click here to check out our Software Industry Report for 2021
AstroNova, Inc. (ALOT – Get Rating)
With a market capitalization of $121.58 million, ALOT in West Warwick, R.I., designs, develops, manufactures, and distributes specialty printers and data acquisition and analysis systems in several countries globally. The company operates through two segments: Product Identification; (PI) and Test & Measurement (T&M).
On July 13, 2021, ALOT announced its promotion as a Tier 1 supplier by Airbus for the A320 family of commercial aircraft. Gregory A. Woods, the company’s President and CEO, commented…
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