3 Best Tech Stocks In Focus For October

The tech sector remains one of the most popular sectors for investors and it is no surprise that almost every day there are investors who are on the hunt for tech stocks. At this point in time, there are many tech stocks that are trading at high valuations and hence, it is perhaps prudent for investors to look into tech stocks that are cheaper. Here is a look at three of the cheaper tech stocks to track right now.

1. Cisco Systems Inc (NASDAQ:CSCO)

Cisco may be one of the world’s biggest router and networking switch companies, but it has grown at a remarkably slow pace in recent times. In the period between 2017 and 2021, it clocked a CAGR of only 1.5%. The trade standoff with China and the COVID 19 pandemic were some of the major factors behind plummeting sales as well.

However, in a recent investors event, CISCO stated that it is going to generate growth in the 5% to 7% CAGR range between 2021 and 2025 fiscal years. The growth is expected to be driven by its subscription business and the expansion of the company’s software offerings. It only trades at 16 times it future earnings and could well prove to be a steady presence in your tech portfolio.

2. Ericsson (NASDAQ:ERIC)

If you are looking into cheap 5G players then Ericsson could be the stock to look into. The telecom equipment maker has benefitted considerably due to the troubles of Huawei and currently, it is the biggest operator in the 5G equipment space along with Nokia. However, it is probably at a better position than its rival Nokia. The company has stable management and in addition to that, it has expanded smoothly without getting into the sort of financial trouble that Nokia encountered with its acquisition of Alcatel-Lucent.

Additionally, Nokia suspended its dividend but Ericsson paid out a 2% half-yearly dividend recently. At this point, Ericsson holds 144 commercial 5G agreements across the world and it is a tech stock that could be considered in light of the upcoming expansion of the 5G market.

3. Skyworks Solutions (NASDAQ:SWKS)

Last but certainly not least, radio frequency and wireless chips maker Skyworks Solutions is another cheap tech stock that could be worth tracking by investors at this point. The pandemic had disrupted its earnings and revenues considerably and the trade war resulted in the loss of 10% of its revenues from Huawei.

However, analysts have projected that revenues and earnings are both going to soar by 52% and 70% respectively as smartphone manufacturers like Apple spend more than 5G devices. Additionally, the recoveries in the auto and industrial spaces from the pandemic are also going to be a source of strength for Skyworks. The stock is currently trading 16 times its future revenues.

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