The technology industry is driven by innovation, and many of the most compelling stock picks are found in the bargain price range. NeoPhotonics Corp. (NYSE: NPTN) develops networking equipment for high-bandwidth communications. Some of its products include optical switching devices, high speed integrated controllers, transceivers, laser devices, and network monitoring equipment.
There’s a lot of opportunity in the optical networking market, especially as public and private sectors move towards ultrafast broadband solutions. This company has generated lower double-digit revenue growth in the previous two fiscal years. At the end of 2019, it reported a gross profit margin of 24.86% and an EBITDA margin of 4.24%.
Earnings are forecasted to increase by 61.14% this year, which will make the company even more profitable. The stock is currently trading close to 31% below its fair market value, which suggests that there will be a strong upside, especially as the market is bullish today. Bargain investors will find that this stock offers low-end exposure to the rapidly growing communications and technology industries.
- 1 Year Price Growth: 08%
- YTD Price Growth: 36%
- 3 Month Price Growth: 80%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.