Technology stocks have been driving the market’s rally to record highs, but there are still a number of hidden-gem cheap names in the sector for investors to take advantage of. CNBC Pro used the S & P 1500 Tech composite as the universe and looked at shares trading at a discount to the index, the sector as well as their respective industry based on their forward price-earnings ratio. That is, we sought to find stocks that are cheaper than their peers based on their stock price relative to their future earnings power. We also considered the following criteria: Gaining momentum: Stocks that are up in past month Analysts see gains ahead: Stocks with an upside to average analyst consensus price target of 5% or more Market cap of at least $1.5 billion The screen turned up a duo of chip stocks Western Digital and Skyworks Solutions. Chipmakers have been riding on the tailwind of the enthusiasm of artificial intelligence, and Wall Street analysts still think these two stocks have significant upside ahead. Oracle is also on the list. The database software stock surged 12% Tuesday after fiscal fourth-quarter results topped analysts’ earnings estimates. Oracle’s cloud services and license support segment, its largest business, saw a 12% increase in revenue. Investors might also want to take a closer look at First Solar, according to the screen. First Solar recently got a boost after reporting another solid quarter , with the company booked solid through 2026 and an order backlog that stretches into the end of the decade. Belden , TD SYNNEX , Corning , NetScout System s and Envestnet were also on the list.
