3 Cheap Tech Stocks To Buy For Long-Term Growth Potential

The firm’s longer-term earnings outlook has turned far more positive since its report. This positivity helps Mitek grab a Zacks Rank #2 (Buy) at the moment, alongside its “A” grade for Growth and “B” for Momentum in our Style Scores system.

Zacks estimates call for its FY20 revenue to jump 17%, with FY21 expected to come in another 15% higher sales. Mitek’s adjusted EPS figures are projected to surge 38% and 16% over this same stretch. And it boasts a strong history of quarterly earnings beats.

MITK’s offerings are tailor-made for an economy that is only becoming more mobile and digital-centric. This has helped attract investors, as the stock has soared 245% in the last five years to crush the tech sector’s 120%, which includes an 80% climb off the market’s lows.

Plus, the stock sits about 10% off its recent highs. On top of that, Mitek trades at a discount to the tech sector and 35% below its own two-year median in terms of forward earnings. And it is part of the Zacks’ Computer - Optical Imaging industry that is highly-ranked right now.

ChannelAdvisor Corporation (ECOM)

Prior Close: $14.30 USD

ChannelAdvisor is a cloud-based firm that offers e-commerce solutions that help brands and retailers connect with customers, grow sales, and more. The company topped our Q2 estimates in early August. “Our second quarter results were exceptional, with record revenues and record adjusted EBITDA both substantially exceeding our original guidance for the quarter,” CEO David Spitz said in prepared remarks.

ECOM, which has been around since 2001, enables its clients to improve sales and optimize fulfillment on platforms like Amazon (AMZN - Free Report) and eBay (EBAY - Free Report) . Investors should note that the company acquired Paris-based e-commerce analytics firm, BlueBoard, in July.

ChannelAdvisor’s strong earnings revisions help it hold a Zacks Rank #1 (Strong Buy) at the moment, with its FY20 consensus up 40% and FY21 up 26%. The firm also lands “B” grades for Growth and Momentum.

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