Latest news with #VontierCorp
Yahoo
5 days ago
- Business
- Yahoo
VNT- A New "Buy" in the Industrial Tech Space
We have been looking for better earnings growth to move Vontier Corp. (VNT) back on the 'Buy' list, and the company is now delivering. Vontier recently reported 2Q25 results that featured 25% year-over-year adjusted earnings growth and topped analyst expectations, observes John Eade, president Argus Research. To get more articles and chart analysis from MoneyShow, subscribe to our .) Vontier is an industrial technology company focused on transportation and mobility solutions. It is now working to diversify the business through acquisitions that will support Electric Vehicle (EV) charging infrastructure and smart energy management. We have a favorable view of Vontier's recent acquisitions and new products, and demand is starting to pick up. Vontier Corp. (VNT) In 2Q, Vontier acquired Sergeant Sudz, a leading provider of next-generation tunnel automation and smart motor control center technology for tunnel car wash operators in the US. Terms of the transaction were not disclosed. From a technical standpoint, the shares have reversed course and are now in a bullish pattern of higher highs and higher lows that dates to April. They offer value, trading at 12 times our 2026 EPS estimate. See also: SPX: Why No One Seems to Care About Tariffs Anymore The price-to-sales ratio of two is also below the peer average. We believe the valuation undervalues the company's near-term earnings prospects. We are setting a 12-month target price for VNT of $47. Recommended Action: Buy VNT. More From ATO: One of My Favorite Utilities in a Booming Market DOCS: A Healthcare Play That's on the Move After Beat-and-Raise Quarter Market Minute 8/13/25: Stocks at Highs Amid Full-Court Fed Press
Yahoo
28-03-2025
- Business
- Yahoo
Is Vontier Corp. (VNT) the Best Affordable Tech Stock to Buy According to Analysts?
We recently published a list of . In this article, we are going to take a look at where Vontier Corp. (NYSE:VNT) stands against other best affordable tech stocks to buy according to analysts. Stock affordability can be assessed in multiple ways. The most common approach is considering stocks with a market price below a certain threshold. Another method is evaluating stocks based on relative valuation metrics, such as a low price-to-earnings (P/E) ratio or other similar multiples. While we have earlier written about undervalued stocks based on P/Es (Read: ), the focus for this article is a blend of both the approaches. Apart from low valuation, investors are often drawn to lower-priced stocks, particularly those under $50, because even small price movements can lead to significant percentage gains. Additionally, many investors prefer owning a larger number of shares in lower-priced stocks rather than a few shares in higher-priced ones. However, a stock's affordability alone does not determine its quality or long-term potential. Key factors such as financial stability, business execution, and overall market conditions play a crucial role in a stock's performance. Affordable tech stocks are often found in the small- and mid-cap space, particularly within the $10-$50 range, which is the focus of this article. Recently, interest in small- and mid-cap stocks has increased following the volatility in the Magnificent 7 (Mag 7) mega-cap tech stocks. Chris Retzler, portfolio manager of the Needham Small Cap Growth Fund, discussed the outlook for small-cap stocks on CNBC's Squawk Box on January 17. He noted that while small-cap stocks have underperformed broader market indexes, recent momentum in the Russell 2000 suggests a potential shift. Chris emphasized that small-cap companies are seeking greater economic stability, which, once established, could drive broader market participation and growth. He also highlighted ongoing innovation in industries such as electric vehicles, semiconductors, and data infrastructure, which could benefit smaller firms. Similarly, in mid-February, Gene Munster, managing partner at Deepwater Asset Management, discussed a potential shift from mega-cap tech stocks toward smaller technology companies. While he remains optimistic about the long-term prospects of the Mag 7, he believes that smaller tech firms—particularly those with a market cap below $500 billion could start outperforming as investors look for new growth opportunities. Identifying the best affordable tech stocks is particularly challenging, given the sector's dynamic nature and recent volatility. To gain further insights, we look at another discussion on CNBC from March 24, where Gene Munster again shared his outlook on the tech sector. He pointed to April 2 as a key event, as new tariffs are set to take effect. While acknowledging short-term volatility, Munster remains bullish on tech stocks for the next two years, viewing the market as still in the early stages of an AI-driven growth cycle, unless disrupted by a potential recession. Despite short-term fluctuations and external factors like tariffs, the long-term outlook for tech remains strong, especially for companies positioned to capitalize on AI-driven growth and broader industry trends. That said, given the recent volatility in large tech stocks, opportunities in small- and mid-cap tech companies have come to the fore, particularly for those with strong financials and innovative offerings. As investors look beyond the Magnificent 7 and large cap tech companies, affordable tech stocks in sectors like AI, semiconductors, and data infrastructure could benefit from increased market attention. To identify the best affordable tech stocks to buy according to analysts, we screened for U.S.-listed companies with a share price between $10 and $50 and a market capitalization above $1 billion. These criteria helped us avoid volatile small-cap stocks. Next, we narrowed the selection to stocks trading at or below a forward price-to-earnings (P/E) ratio of 20 while also having an upside potential of at least 20%. From this refined list, we further filtered companies that are widely held by hedge funds, using data from Insider Monkey's Q4 2024 hedge fund holdings database. Finally, we ranked the top 12 stocks based on their upside potential, placing those with the highest projected gains at the are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). A technician analyzing a sophisticated piece of equipment in a laboratory Corp. (NYSE:VNT) is a global industrial technology company specializing in mobility solutions, fueling equipment, fleet management, and vehicle diagnostics and repair. Its mobility technologies business provides digitally enabled equipment and operating software solutions to drive automation, productivity and compliance across the mobility ecosystem. Following the Q4 results, Bank of America Securities analyst Andrew Obin reaffirmed a Buy rating on Vontier Corp. (NYSE:VNT) on February 14, with a $45 price target. His optimistic outlook is based on strong Q4 2024 performance and 2025 guidance. The analyst noted that the company's orders have grown significantly year-over-year, driven by a multi-year replacement cycle for underground tank equipment, bolstering its revenue outlook. According to him, despite comparable margins and earnings growth, the company trades at a lower valuation than peers which makes it an attractive investment. Additionally, the company's core orders are rising, previous challenges are easing, and demand for payment solutions and fuel equipment remains strong. While recurring revenue helps offset any segmental declines, further upside potential is supported by cost-saving initiatives in 2024 and potential share repurchases. Overall, VNT ranks 10th on our list of best affordable tech stocks to buy according to analysts. While we acknowledge the potential of VNT to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than VNT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
