The technology industry is witnessing unprecedented growth, with new innovations emerging at a remarkable pace. The dynamic environment presents investors with a myriad of opportunities. To navigate this landscape, it is crucial to identify tech stocks that not only show promise but also align with industry trends.
Three tech stocks worth considering are Sprinklr, Inc. (CXM), Sabre Corporation (SABR), and Cricut, Inc. (CRCT). Each of these stocks is currently priced under $10, providing an accessible entry point for investors. By investing in these companies, one can capitalize on the expanding tech ecosystem and its transformative potential.
As technology evolves, several key trends drive this change. One of the most influential factors is the rise of artificial intelligence (AI). Businesses are increasingly integrating AI into their operations, leveraging its capabilities to enhance productivity and improve customer experiences.
The advancements in AI are reshaping existing business models and creating new market opportunities. In addition to AI, other technological innovations, such as quantum computing and 5G technology, are further redefining the industry.
Quantum computing enables swift resolutions to complex challenges, while 5G offers lightning-fast connectivity, fostering new applications across various sectors. Edge computing further enhances data processing efficiency, allowing companies to respond more effectively to real-time demands.
Government support plays a significant role in this growth. The Biden-Harris Administration recently announced approximately $504 million in implementation grants for 12 Tech Hubs through the U.S. Department of Commerce’s Economic Development Administration (EDA).
Additionally, the administration is investing up to $100 million to accelerate research and development in AI technologies focused on sustainable semiconductor materials. These investments reflect the government’s commitment to innovation and highlight the potential of the tech industry.
Considering the trends in the industry, let us discuss the fundamentals of three tech stocks that are priced below $10, starting with #3.
Stock #3: Sprinklr, Inc. (CXM)
CXM delivers enterprise cloud software, providing a Unified Customer Experience Management platform. The platform enables customer-facing teams to break down internal silos, engage across digital channels, and access a full suite of tools to enhance customer experiences.
On October 2, CXM launched a local data hosting solution for its Sprinklr platform in Switzerland via Microsoft Azure. The addition allows CXM clients to securely host data within Switzerland, meeting regional security and governance standards.
By offering localized data storage, CXM could strengthen its appeal to Swiss businesses, particularly those in heavily regulated sectors, supporting its growth through enhanced customer confidence and a tailored approach to compliance.
On June 6, CXM announced a strategic partnership with Reddit, Inc. (RDDT), integrating RDDT's Data and Advertising APIs into CXM. The partnership provides CXM clients with unique engagement opportunities through RDDT's interest-based communities, offering context-rich advertising that aligns with evolving privacy standards.
The collaboration would enrich CXM’s platform, delivering new, valuable engagement tools to its enterprise customers and positioning it as a leader in adaptable customer experience management.
CXM’s trailing-12-month gross profit margin of 74.22% is 47.6% higher than the industry average of 50.30%. Its trailing-12-month net income margin of 6.54% is 78.8% higher than the sector average of 3.66%. Likewise, the stock’s trailing-12-month ROTA of 5.14% is 151.1% higher than the industry average of 2.00%.
For the fiscal 2025 second quarter that ended on July 31, 2024, CXM’s total revenue increased 10.5% year-over-year to $197.21 million. Its non-GAAP gross profit grew 5.8% from the year-ago value to $143.61 million. Plus, the company’s non-GAAP net income and non-GAAP net income per share came in at $17.13 million and $0.06, respectively.
Analysts expect CXM’s revenue for the fiscal year ending January 2026 to increase 4.3% year-over-year to $819.91 million. Its EPS is expected to grow 26.7% from the prior year to $0.42. In addition, the company topped the consensus revenue estimates in all of the trailing four quarters, which is impressive.
Shares of CXM have surged 4% over the past five days to close the last trading session at $7.37.
CXM’s POWR Ratings reflect its fundamentals. The stock has a B grade for Value and Quality. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
CXM is ranked #57 out of 130 stocks within the Software – Application industry. To check the stock’s ratings for Growth, Momentum, Stability, and Sentiment, click here.
Stock #2: Sabre Corporation (SABR)
SABR powers the global travel industry as a software and technology company, supporting a broad range of travel businesses, from airlines and hotels to travel agencies and suppliers. The company operates through two key segments: Travel Solutions and Hospitality Solutions.
On October 28, SABR announced an agreement for Serko Limited to acquire GetThere, SABR’s business travel management solution. The move would sharpen SABR’s focus on delivering robust technology across the travel sector, reinforcing its vision as the industry’s most valued platform provider.
By enabling Serko to drive GetThere’s expansion, SABR can capitalize on Serko’s strengths while concentrating on its core innovations in travel technology.
On October 22, SABR secured a multi-year distribution agreement with World Travel, Inc., a leading U.S. Travel Management Company. The partnership grants thousands of World Travel agents access to SABR’s marketplace, featuring seamless booking across NDC and EDIFACT content.
The expanded reach would elevate SABR’s standing in corporate travel, providing agents with enriched booking options that align with modern travel needs.
SABR’s trailing-12-month gross profit margin of 59.47% is 58.3% higher than the industry average of 37.57%. The stock’s trailing-12-month EBIT margin of 11.15% is 38.6% higher than the sector average of 8.05%. Additionally, its trailing-12-month EBITDA margin of 12.91% is 13.5% higher than the 11.38% industry average.
For the fiscal second quarter that ended on June 30, 2024, SABR’s revenue increased 4% year-over-year to $767.24 million. Its adjusted operating income rose 132.1% from the prior year’s quarter to $106.99 million. Additionally, the company’s adjusted EBITDA grew 76.2% from the year-ago value to $128.69 million.
As of June 30, 2024, SABR’s total current assets stood at $1.17 billion, compared to $1.16 billion on December 31, 2023.
For the fiscal year ending December 2025, Street expects SABR’s revenue to increase 5.3% year-over-year to $3.05 billion. Its EPS for the same period is expected to come in at $0.21. Moreover, the company surpassed the consensus revenue and EPS estimates in three of the four trailing quarters.
Shares of SABR have surged 15.2% over the past three months and 43.2% over the past six months to close the last trading session at $4.01.
SABR’s solid prospects are projected in its POWR Ratings. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
SABR has a B grade for Growth, Value, and Quality. It is ranked #22 out of 76 stocks in the Technology – Services industry.
Click here to see SABR’s ratings for Stability, Sentiment, and Momentum.
Stock #1: Cricut, Inc. (CRCT)
CRCT is a creative technology company that designs and builds an ecosystem of connected cutting machines, accessories, and materials optimized for scalability and integration. It operates across three segments: Connected Machines; Subscriptions; and Accessories and Materials.
CRCT’s trailing-12-month EBITDA margin of 18% is 58.2% higher than the industry average of 11.38%. Its trailing-12-month levered FCF margin of 12.36% is 148.6% higher than the sector average of 4.99%. Furthermore, the stock’s trailing-12-month net income margin of 9.16% is 102.9% higher than the 4.51% industry average.
CRCT’s total revenue for the fiscal 2024 second quarter, which ended June 30, came in at $167.95 million. Its income from operations increased 37.3% year-over-year to $26.43 million. Moreover, the company’s net income and EPS rose 23.4% and 28.6% from the previous year’s quarter to $19.77 million and $0.09 respectively.
The consensus revenue estimate of $746.34 million for the fiscal year ending December 2025 reflects a year-over-year rise of 1.4%. Its EPS is expected to increase 11.3% from the prior year to $0.30. Furthermore, the company has surpassed the consensus EPS estimates in three of four trailing quarters.
CRCT’s stock has surged 5.6% over the past three months and 26% over the past six months to close the last trading session at $6.79.
CRCT’s POWR Ratings reflect its robust outlook. The stock has an overall rating of B, which translates to a Buy in our proprietary rating system.
It has an A grade for Quality and a B for Value and Sentiment. CRCT is ranked #12 out of 43 stocks in the B-rated Technology - Hardware industry.
Click here to check out additional CRCT ratings for Growth, Stability, and Momentum.
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CXM shares fell $0.02 (-0.27%) in premarket trading Tuesday. Year-to-date, CXM has declined -38.95%, versus a 23.12% rise in the benchmark S&P 500 index during the same period.
About the Author: Aanchal Sugandh
Aanchal's passion for financial markets drives her work as an investment analyst and journalist. She earned her bachelor's degree in finance and is pursuing the CFA program. She is proficient at assessing the long-term prospects of stocks with her fundamental analysis skills. Her goal is to help investors build portfolios with sustainable returns.
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