The tech sector’s growth trajectory is nothing short of impressive, fueled by the rapid adoption of artificial intelligence (AI), cloud computing, and high-performance computing solutions. In 2024, the Nasdaq Composite surged 31.4%, leaving the S&P 500 and Dow Jones trailing behind with gains of 25.2% and 14.1%, respectively.
Investors seeking high-growth opportunities at a relatively low entry cost might consider these three stocks: Yext, Inc. (YEXT), Eventbrite, Inc. (EB), and inTEST Corporation (INTT), which are trading under $10. These companies are well-positioned to deliver substantial returns as they capitalize on industry trends.
As businesses increasingly integrate generative AI, automation, and data-driven analytics, demand for cutting-edge technology remains robust. Simultaneously, the cloud computing sector continues its upward momentum, with businesses embracing hybrid and multi-cloud solutions to enhance operational efficiency and reduce costs.
Projections indicate that worldwide IT spending will reach $5.61 trillion in 2025, reflecting a 9.8% increase, as reported by Gartner. Moreover, the global information technology (IT) market is projected to be $26.93 trillion by 2032, growing at a CAGR of 11%.
As advancements in 5G, the Internet of Things (IoT), and renewable technologies gain momentum, the tech sector remains a critical driver of both innovation and economic progress. This evolution not only fuels demand for cutting-edge solutions but also creates opportunities for smaller, affordable tech firms to carve out their niche.
With that in mind, let’s delve into the fundamentals of the above-mentioned three tech picks.
Yext, Inc. (YEXT)
YEXT provides a cloud-based platform that helps businesses manage their digital presence across search engines, apps, maps, and social networks. Its platform enables companies to control business information, optimize landing pages, manage customer reviews, and deliver accurate answers to consumer queries across various digital channels.
On February 10, 2025, the company announced the acquisition of Places Scout, a leading local SEO and location intelligence platform. Places Scout delivers real-time, location-based insights to help brands track competitors, optimize visibility, and enhance search performance. This acquisition bolsters YEXT’s competitive intelligence, benchmarking, and AI-powered analytics, reinforcing its leadership in digital presence management.
Following its recent acquisition of Hearsay Systems, YEXT continues to expand its capabilities, equipping brands with deeper insights to navigate both traditional and AI-driven search landscapes.
In terms of forward non-GAAP P/E, YEXT is trading at 20.09x, which is 20.8% lower than the industry average of 25.38x. Similarly, the stock’s forward EV/Sales multiple of 2.02 is 39.8% lower than the industry average of 3.36. Also, its forward Price/Sales ratio of 2.03 is 39.4% below the industry average of 3.35x.
In the fiscal third quarter that ended October 31, 2024, YEXT’s revenue increased 12.7% year-over-year to $113.99 million. Its gross profit grew 10.9% from the year-ago value to $87.74 million. The company’s non-GAAP net income came in at $15.62 million, indicating a 38.3% rise from the prior-year period, while its non-GAAP net income per share increased 33.3% year-over-year to $0.12. Also, its adjusted EBITDA for the quarter improved 70.9% over the prior-year period to $23.09 million.
The consensus revenue estimate of $112.77 million for the fiscal fourth quarter (ended January 2025) represents an 11.5% increase year-over-year. The consensus EPS estimate of $0.13 for the same period indicates a 32.5% improvement year-over-year. The company has an impressive earnings surprise history; it surpassed the consensus EPS estimates in three of the trailing four quarters.
Over the past six months, the stock has surged 38.9%, closing the last trading session at $6.68.
YEXT’s strong fundamentals are reflected in its POWR Ratings. The stock has an overall rating of A, which equates to a Strong Buy in our proprietary rating system. The POWR Ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
YEXT has an A grade for Growth and a B for Sentiment and Quality. It is ranked #2 out of 40 stocks in the B-rated Software – Business industry. Click here to see the additional ratings for YEXT (Value, Momentum, and Stability).
Eventbrite, Inc. (EB)
EB operates a two-sided marketplace that provides self-service ticketing and marketing tools for event creators internationally. Its platform integrates components needed to plan, promote, and produce live events that allow creators to reduce friction and costs, enhance reach, and drive ticket sales.
Last year, on October 28, EB launched a free timed-entry tool that empowers organizers to easily set up and sell multiple daily time slots for their events. This fully customizable solution brings more flexibility and is an enhanced opportunity for tours, attractions, excursions, and classes, where attendees can easily book tickets for their preferred time slot.
In terms of forward EV/Sales, EB is trading at 0.04x, 98.2% lower than the industry average of 2.06x. Likewise, the stock’s forward EV/EBITDA and Price/Sales multiples of 0.35 and 1.00 are 95.7% and 28.3% lower than their respective industry averages of 8.14 and 1.39.
During the nine-month period of 2024, which ended on September 30, EB’s net revenue increased 4.3% year-over-year to $248.60 million. Its gross profit amounted to $174.42 million, up 8% year-over-year. Also, the company’s adjusted EBITDA for the period rose 44% from the year-ago value to $28.59 million.
For the fiscal year (ending December 2025), Street expects EB’s revenue to increase 4.2% year-over-year to $338.20 million. Meanwhile, its EPS for the same period is expected to be $0.04.
The stock has gained 15.9% over the past six months to close the last trading session at $3.35.
It’s no surprise that EB has an overall rating of B, equating to a Buy in our POWR Ratings system. It has an A grade for Value and a B for Quality. Out of 25 stocks in the Internet – Services industry, EB is ranked #8.
Beyond what is stated above, we’ve also rated EB for Growth, Momentum, Stability, and Sentiment. Get all EB ratings here.
inTEST Corporation (INTT)
INTT provides test and process technology solutions for use in manufacturing and testing in automotive, defense/aerospace, industrial, life sciences, security, and semiconductor markets worldwide. The company operates through three segments: Electronic Test; Environmental Technologies; and Process Technologies.
On January 14, 2025, INTT announced two key distributor partnerships to expand its market reach and strengthen customer relationships. The company’s Electronic Test division signed a strategic agreement with Japan-based General Bussan Co., Ltd. to distribute its EMS Products, including electrical interfaces, manipulators, and docking solutions.
Meanwhile, inTEST Environmental Technologies partnered with Prodigy Processing Solutions to distribute its Thermonics® Ultra-Low Temperature and Cryogenic Chillers for the cannabis and hemp processing industries.
Commenting on this, Nick Grant, President and CEO of INTT, said, “These partnerships represent the continued advances we are making as an organization with our 5-Point Strategy to drive growth through expanded geographic reach and deepening our opportunities within our target markets.”
In terms of forward non-GAAP P/E, INTT is trading at 19.96x, which is 21.4% lower than the industry average of 25.38x. Similarly, the stock’s forward EV/Sales multiple of 0.86 is 74.3% lower than the industry average of 3.36. Also, its forward Price/Sales ratio of 0.79x is 76.5% below the industry average of 3.35x.
For the nine-month period that ended on September 30, 2024, INTT’s revenue amounted to $94.09 million, while its gross profit increased 1.6% year-over-year to $40.89 million. Its operating income amounted to $336 million, reflecting an increase of 44.9% from the prior year’s quarter.
The company’s non-GAAP net earnings came in at $959 million and $0.08 per share, up 26.8% and 25% year-over-year. In addition, its adjusted EBITDA grew 13.3% from the same period last year to $2.15 million.
Analysts expect INTT’s revenue for the fiscal fourth quarter (ended December 31, 2024) to grow 26.7% year-over-year to $35.33 million, while its EPS for the same period is expected to come in at $0.14. Moreover, it topped the EPS estimates in three of the trailing four quarters, which is promising.
INTT shares have gained 23.7% over the past six months to close the last trading session at $8.25.
INTT’s stance is apparent in its POWR Ratings. The stock has an A grade for Sentiment and a B for Value. Among 90 stocks in the Semiconductor & Wireless Chip industry, it is ranked #17. Click here to see INTT’s ratings for Growth, Momentum, Stability, and Quality.
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YEXT shares rose $0.21 (+3.14%) in premarket trading Monday. Year-to-date, YEXT has gained 5.03%, versus a 4.03% rise in the benchmark S&P 500 index during the same period.
About the Author: Shweta Kumari
Shweta's profound interest in financial research and quantitative analysis led her to pursue a career as an investment analyst. She uses her knowledge to help retail investors make educated investment decisions.
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