Investors are always on the hunt for the next Microsoft, Tesla or Amazon. Who hasn’t heard or read about a low-priced stock that is going to be the next big thing? The lure of turning a small amount of money into bags of cash is sort of the modern-day version of 49ers during the gold rush.
Obviously, there isn’t a foolproof way to find homerun stocks, 10-baggers or the next Amazon. There are, however, some areas of the market that are more likely to give birth to big winners. In 2021, technology stocks probably offer investors the best chance to uncover highflyers.
Some of the things you’ll see in companies that could lead to you outsized gains include rapidly increasing revenue, an expectation of profitability sooner than later and low institutional ownership. We’ve identified three technology companies that trade for less than $5, have sales growth in excess of 15%, are expected to be profitable within the next 24-months and have low institutional ownership.
Lantronix, Inc. (LTRX)
2022 Consensus Earnings Estimate: $0.26 (1)
2021 Projected Sales Growth: 17.2%
Institutional Ownership: 27.55% (2)
Lantronix Inc. is a global provider of Software as a Service (SaaS), connectivity services, engineering services, intelligent hardware and turnkey solutions for the Internet of Things (IoT) and Remote Environment Management (REM). Lantronix enables its customers to provide reliable and secure IoT Intelligent Edge and OOBM solutions while accelerating time to market. Lantronix’s products and services dramatically simplify the creation, development, deployment and management of IoT projects while providing quality, reliability and security across hardware, software and solutions.
CooTek (Cayman) Inc. (CTK)
2022 Consensus Earnings Estimate: $0.34 (3)
2022 Projected Sales Growth: 30.5%
Institutional Ownership: 1.28% (4)
CooTek is a fast-growing mobile internet company with a global vision, offering mobile applications including a portfolio of content-rich mobile applications, TouchPal Phone book and TouchPal Smart Input.
The company delivers relevant content, develops content-rich mobile application and increases Company’s user base. CooTek employs proprietary big data analytical technologies both to process data Company gathered through Company’s mobile applications and a large amount of content that Company sources and organizes from the internet. These technologies enable Company to obtain in-depth user insights and identify market opportunities.
CooTek’s content-rich mobile applications focus on three categories: online literature, scenario-base content apps and casual games. As Company’s user base and business operations continue to grow in the recent years using Company’s systematic approach, Company has demonstrated Company’s monetization capability in mobile advertising. Company leverages Company’s in-depth user insights to deliver targeted, precise and engaging advertisements that are relevant to users across Company’s various mobile applications.
CooTek launched CooTek Ads, an in-house developed advertising platform supported by Company’s proprietary big data capabilities serving advertising customers directly or through advertising agencies. This system allows advertisers to create and manage advertisement campaigns and budget, and to place advertisements in Company’s portfolio applications directly.
Trivago N.V. (TRVG)
2022 Consensus Earnings Estimate: $0.03 (5)
2022 Projected Sales Growth: 62.2%
Institutional Ownership: 54.24% (6)
trivago N.V., together with its subsidiaries, operates a hotel and accommodation search platform in the United States, Germany, the United Kingdom, Brazil, and internationally. It offers online meta-search for hotels and accommodation through online travel agencies, hotel chains, and independent hotels. The company provides access to its platform through 54 localized websites and apps in 32 languages. As of December 31, 2020, its hotel search platform offered access to approximately 5.0 million hotels and other types of accommodation worldwide. The company was incorporated in 2005 and is headquartered in Düsseldorf, Germany. trivago N.V. is a subsidiary of Expedia Group, Inc.
1 – https://finance.yahoo.com/quote/LTRX/analysis?p=LTRX
2 – https://finance.yahoo.com/quote/LTRX/key-statistics?p=LTRX
3 – https://finance.yahoo.com/quote/CTK/analysis?p=CTK
4 – https://finance.yahoo.com/quote/CTK/key-statistics?p=CTK
5 – https://finance.yahoo.com/quote/TRVG/analysis?p=TRVG
6 – https://finance.yahoo.com/quote/TRVG/key-statistics?p=TRVG