3 Data Storage Stocks That Are Undervalued After Tech Selloff

Investors know that technology stocks have skyrocketed over the last few years, helping lift the S&P 500 and the Nasdaq to new heights. They also understand that this recent bearish turn can be attributed, in large part, to investors selling these same tech stocks.

The recent market-wide downturn obviously offers investors the chance to buy stocks on the dip. This widely-adopted strategy sounds simple enough, but just because a stock’s price is technically cheaper doesn’t mean it’s automatically attractive to investors.

With that said, as market volatility continues, investors should consider looking to the memory and computer storage industries to find newly undervalued stocks.

In the past, investors bemoaned this business as far too cyclical. However, these industries are no longer tethered to the historic PC industry. In fact, the rise of connected devices, the IoT, VR, and AI promise to be secular trends that render these concerns somewhat void.

Now, let’s take a look at three memory solutions firms that have become even more attractive to value investors amid this downturn.

1. Micron (MU – Free Report)  

Micron’s post-earnings selloff presents investors with an amazing chance to buy the stock at a newly reduced price. Micron not only sits over 12% below its 52-week high, but it is also now trading at 5.1x forward earnings, which marks a discount to the broader semiconductor space.

Meanwhile, analysts have turned more positive regarding Micron’s future earnings. Within the last seven days, we have seen nine revisions to Micron’s full-year earnings estimates, with 100% agreement to the upside. These revisions lifted the Zacks Consensus Estimate by $0.36 in this timeframe.

Investors should also note that our current Zacks Consensus Estimates are calling for Micron’s full-year earnings to soar by 121%, while its revenues are expected to climb by 42.6%. Micron is currently a Zacks Rank #1 (Strong Buy), which means now might not be a bad time to buy Micron stock while it is relatively cheap.