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7 tech stocks that could make huge moves in December

Although tech stocks represented one of the sectors most affected by the malaise of 2022, a few of these tech stocks to buy could make a surprising comeback in December. Although it’s not a guarantee, the festive spirit of the holidays seems to have lifted the mood. For example, technology centered Nasdaq Compound posted a 3% gain over the past month. Admittedly, this is not a performance to write home about. At the same time, it demonstrates that the steep losses suffered by technology stocks have been at least temporarily halted. Now the sector needs to score some key wins, which could bolster overall investor sentiment. From there, who knows what can happen?

For this list, I’m going to focus on generally undervalued tech stocks. Basically under the radar, these market ideas have the ingredients for huge moves: relevant companies, relatively strong finances, and a dose of underdog energy.

KLIC Kulicke and Soffa $47.09
SIMO Silicon motion technology $61.25
CCRD Base map $29.90
SWKS Skyworks Solutions $92.91
LRCX Search Lam $453.25
RAW Cirrus Logic $75.11
SPNS Sapiens International $19.24

Tech stocks to buy: Kulicke & Soffa (KLIC)

Source: Shutterstock

Based in Singapore, Kulicke & Soffa Industries (NASDAQ:KLIC) does not attract much attention from US investors. However, that could change quickly. While KLIC represents one of the hardest-hit tech stocks — suffering a 27% year-to-date loss — it has also received some short-term boost. Over the past five days, shares have gained almost 9%, while over the next month they have risen over 14%.

Basically, KLIC should turn out to be incredibly relevant. According to its public profile, the company is a leading provider of semiconductor, LED and electronics assembly solutions serving the global automotive, consumer, communications, computing and computing markets. and industry. Unless you anticipate that these sectors will suffer a substantial loss of demand, KLIC should be able to continue operating. Financially, KLIC is causing intrigue because of its business profile. Currently, the market values ​​KLIC at 6.65 times earnings over the past 12 months. In contrast, the industry median price-to-earnings ratio is 17.4 times.

Tech stocks to buy: Silicon Motion Technology (SIMO)

a close-up image of a semiconductor

Source: Shutterstock

Based in Taiwan, Silicon motion technology (NASDAQ:SIMO) naturally suffered from both the unease affecting technology stocks and geopolitical pressures. With heightened tensions between China and Taiwan, SIMO does not bring much confidence. As a result, stocks have lost more than 35% of equity value since the start of the year. Meanwhile, SIMO gained nearly 16% in the prior month, reflecting increasing short-term momentum as December 1 approaches.

Basically, Silicon Motion is attracting attention because it specializes in developing NAND flash controller ICs for solid-state storage devices. According to industry experts, the global SSD market could grow to $175.9 billion by 2030 from $40.7 billion in 2021. This translates to a compound annual growth rate (CAGR) of 17 .6%. Financially, SIMO represents one of the top tech stocks that could make big moves in December due to its resilience. According to Gurufocus.com, the company is debt free, giving it incredible flexibility in these uncertain times.

Tech stocks to buy: CoreCard (CCRD)

APPS stock: A digital illustration of software icons surrounding a mobile phone.

Source: Shutterstock

Based in Norcross, Georgia, Base map (NYSE:CCRD) absorbed a sizable hit similar to other tech stocks. Currently, shares are down more than 22% since the January open. However, CCRD has a market capitalization of only $254.5 million. As one of the smaller companies, it is capitalizing on broader positive sentiment. Indeed, over the previous month, CCRD gained almost 33%.

This is significant momentum heading into December. Moreover, the fundamentals could serve the business well. Specifically, CoreCard focuses on the card management system, offering powerful and integrated solutions for any type of card issuance program. According to a research paper, the card management systems market could reach $39.77 billion in 2027. Another reason to keep an eye on CCRD as one of the tech stocks to buy centers on its income statement . Currently, CoreCard’s three-year revenue growth rate stands at 34.6%, beating 88% of its peers. Moreover, its net margin is 23.2%, higher than 93% of the industry.

Skyworks Solutions (SWKS)

Here's how Broadcom Stock fell back in investors' favor

Source: ©iStock.com/lef2481

Perhaps one of the most attractive tech stocks poised for big moves in December, Skyworks Solutions (NASDAQ:SWKS) nevertheless represents a contrary argument. At the moment, potential investors are looking at a loss close to 41%. However, over the past six months, SKWS has reduced this loss to just 6.6%. Part of the rally stems from significant short-term momentum. In the prior month, shares rose 9.6%.

A semiconductor company, Skyworks manufactures chips for radio frequency and mobile communication systems. Clearly, these segments have serious relevance, providing a long upside trajectory for SWKS. For example, the 5G Internet of Things market alone could reach a valuation of over $297 billion by 2030. While many reasons to bet on SWKS exist for naysayers, a primary consideration centers on a excellent value. Currently, the market is valuing SKWS at 9.2 times forward earnings. In contrast, the underlying industry futures PE ratio is 18 times.

Lam Research (LRCX)

silicon wafer in die clamping machine in semiconductor manufacturing

Source: Shutterstock

Arguably one of the most overlooked tech stocks, Search Lam (NASDAQ:LRCX) gets a raw supply from Wall Street so far. As of this writing, LRCX stock has sold over 36% of its net worth. However, over the past six months, LRCX has managed to reduce this loss to just 5.4%. Additionally, over the past month, stocks have gained more than 21%. Again, that’s a lot of momentum to carry into December. Basically, Lam Research provides wafer fabrication equipment and related services to the semiconductor industry. As you would expect, the business is very relevant. According to Allied Market Research, experts predict that the global semiconductor wafer market will reach a valuation of $27.13 billion by 2030.

Financially, Lam provides excellent income statement indicators. Its three-year revenue growth rate (26.6%) and net margin (27%) both rank among the top echelons of the industry. Additionally, the market values ​​LRCX at 13.3 times forward earnings. For context, the median advanced PE for the industry is 18 times.

Cirrus Logic (CRUS)

In ultra modern electronic manufacturing factory, design engineer in sterile suit holds microchip with gloves and examines it.

Source: Shutterstock

Based in Austin, TX, Cirrus Logic (NASDAQ:RAW) might not be a household name among tech stocks. However, it deserves closer inspection for those looking for a clever but overlooked market idea. While stocks have slid more than 18% in stock value since the start of the year, they have gained more than 12% in the past month. Additionally, over the past five sessions, CRUS has jumped 6%.

Therefore, the momentum looks tantalizing just ahead of the December sessions. Basically, Cirrus is focused on providing low-power, high-accuracy mixed-signal processing solutions for mobile and consumer applications, including smartphones, tablets, truly wireless headphones, wearables, laptops, and laptops. augmented reality/virtual reality headsets. The latter may intrigue Cirrus, as sales of the combined segment could reach more than $52 billion by 2027. This compares favorably to the $10.5 billion the sector could reach by the end of this year.

For investors, CRUS represents a strong play among tech stocks to buy. With a stable balance sheet, the company offers strong revenue trends and profit margins. Additionally, the company is undervalued, priced at less than 15 times future earnings.

Sapiens International (SPNS)

software stocks: coding software developer working with scrum and agile development augmented reality dashboard computer icons and code fork and release management with responsive cyber security

Source: Shutterstock

For those who want to increase the risk-reward factor in their potential tech stocks, Sapiens International (NASDAQ:SPNS) can attract intrigue. Israel-based SPNS has a market capitalization of $1.1 billion, just the cusp of a small-to-medium sized company. Since the start of the year, SPNS has lost more than 45% of its net worth. Over the past six months, it has reduced that loss to 18%.

Of course, this is not a positive number. And in the previous month, stocks were actually down 2.6%. Therefore, you are taking a heavier risk here. Nevertheless, the fundamentals are appealing, with Sapiens specializing in computer software for the insurance sector. After the horrors of the coronavirus pandemic, people are much more attentive to insurance products to protect their financial well-being.

Financially, investors can view Sapiens’ 12.8% three-year revenue growth as an attractive attribute. Additionally, the company is undervalued relative to price and earnings growth (ANKLE), which came in at 0.72 times versus 1.52 times the industry median.

As of the date of publication, Josh Enomoto had no position (directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto helped negotiate major contracts with Fortune Global 500 companies. Over the past several years, he has provided critical and unique insights to investment markets, as well as various other industries including law, construction management and healthcare.


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