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

ECOM has jumped 65% in 2020, which includes a recent pullback. ECOM was trading above $20 a share at the end of August and even higher at the start of last month. This gives the stock over 30% more room to run before it climbs back to its recent peak.

ECOM also trades at a discount to the tech sector despite its outperformance over the last 12 months. Let’s also not forget that ChannelAdvisor is part of an industry that will expand for year to come, as e-commerce accounted for only 16% of total U.S. retail sales in Q2 despite near perfect conditions to dominate.

DouYu International (DOYU)

Prior Close: $15.42 USD

DouYu (Free Report) is a Chinese video gaming and e-sports focused live streaming company that went public in July 2019. The firm has drawn comparisons to Amazon’s Twitch for its ability to allow people to watch video games live. DOYU operates across both PC and mobile apps and it says it “has gained coveted access to a wide variety of premium eSports content.” The firm also stands to grow within the booming gaming global video space that is projected to soar from $159 billion in 2020 to over $200 billion by 2023.

DouYu is backed by Chinese social media and gaming powerhouse Tencent (TCEHY - Free Report) . And investors should note that firm Tencent proposed in August that DouYu enter into a stock-for-stock merger with rival HUYA (HUYA - Free Report) . The firm is currently evaluating the “preliminary non-binding proposal.” The deal would create a mega power in the streaming gaming industry in the world’s second-largest economy. But it’s unclear if it will happen.

DouYu beat our Q2 estimates in August and its growth outlook appears solid. The firm’s adjusted fiscal 2020 earnings are projected to soar over 220% to $0.55 a share on 26% higher sales that would see it reach $1.31 billion.This is expected to be followed up by another 34% earnings growth and 30% stronger revenue in FY21. DouYu’s consensus earnings estimates have climbed since its release to help it land a Zacks Rank #2 (Buy) at the moment, alongside “B” grades for Growth and Momentum.

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