While technology is not the only area of the stock market that’s currently growing, it continues to be a major force in equities trading. And while the mega-cap tech stocks tend to get all the media and investor attention, there are many lesser known names that are also posting significant increases in their share prices and outperforming the broader market. For investors, being aware of these less popular names can help deepen a portfolio.
Some companies that investors may be unfamiliar with have seen their share prices more than double in the last year, many beating the performances of much larger and better known technology concerns. Being able to look beyond the usual suspects and find stocks that are quiet compounders can help grow an investment portfolio over time and make a big difference in long-term performance. Here are three tech stocks flying under the radar to buy in April 2024.
Applied Materials (AMAT)
While much of the talk related to semiconductor stocks focuses on Nvidia (NASDAQ:NVDA), shares of microchip equipment maker Applied Materials (NASDAQ:AMAT) have been quietly outperforming. AMAT stock has risen 36% in 2024 thus far, bringing its 12-month increase to 88%. The stock is among the top performers in both the S&P 500 and Nasdaq 100 indices. The growth has been fueled by strong demand for its products, which has translated into positive earnings for the company.
Applied Materials makes the products and equipment needed to manufacture microchips and semiconductors. Its clients include Intel (NASDAQ:INTC) and Taiwan Semiconductor Manufacturing (NYSE:TSM). As one might expect, business is booming with the AI revolution in full-swing. Applied Materials reported earnings per share (EPS) of $2.12 for the fourth quarter of 2023, which beat analysts’ estimates of $1.90. Revenue came in at $6.71 billion, which beat forecasts of $6.48 billion.
Western Digital (WDC)
Western Digital (NASDAQ:WDC) is another tech stock that has been flying under the radar despite outperforming the market in 2024. The company makes computer drives and specializes in data storage which, despite not being very exciting, is an essential component of the tech sector. This is why WDC stock has nearly doubled in the past 12 months, including a 39% increase this year. For shareholders, Western Digital Corp. has proven to be an unheralded gem of an investment.
In recent weeks, analysts across Wall Street have been raising their ratings and price targets on WDC stock. The bullish outlook is being driven by Western Digital’s plan to split its hard-disk drive and flash businesses into two independent publicly traded companies. Analysts also see upside from growing consumer and corporate demand for Western Digital’s products, which is being driven by the growth of AI applications. The corporate split is planned for the second half of this year.
eBay (EBAY)
After years of underperformance, many investors had given up on e-commerce company eBay (NASDAQ:EBAY). The stock seemed destined to become a value trap. However, after years of being stuck in neutral, EBAY stock has quietly undergone a revival in 2024. Since January, the share price has risen nearly 12% which is the company’s best start to a year in nearly a decade. The rebound is due to solid earnings and guidance from the company, as well as returning capital to long suffering shareholders.
In February, eBay announced that it’s raising its quarterly dividend payment by 8%. eBay now pays shareholders a quarterly dividend of 27 cents per share, up from the previous 25 cents. The increased payout to stockholders lifts the dividend yield on eBay’s stock to 2.14%, which is much better than what’s offered by most technology companies. eBay also announced a new $2 billion stock buyback program. While EBAY stock is up 15% this year, it has increased only 32% over the last five years due to poor past performance.
On the date of publication, Joel Baglole held long positions in NVDA and AMAT. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.