Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Technology Hardware, Storage & Peripherals industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Technology Hardware, Storage & Peripherals Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Technology Hardware, Storage & Peripherals Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Technology Hardware, Storage & Peripherals industry for Wednesday, October 16, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Technology Hardware, Storage & Peripherals industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

AstroNova, Inc.’s Value Grade

Value Grade:

AstroNova, Inc. designs, develops, manufactures, and distributes specialty printers, and data acquisition and analysis systems in the United States, Europe, Asia, Canada, Central and South America, and internationally. The company operates in two segments, Product Identification (PI) and Test & Measurement (T&M;). The PI segment offers tabletop and production-ready digital color label printers, and OEM printing systems under the QuickLabel brand; digital color label mini-presses and inline printing systems under the TrojanLabel brand; and label materials, tags material, inks, toners, and thermal transfer ribbions under the GetLabels brand. This segment also develops and licenses various specialized software programs to design and manage labels and print images; and provides training and support. This segment serves chemicals, cosmetics, food and beverage, medical products, nutraceuticals, pharmaceuticals, and other industries; and brand owners, label converters, commercial printers, and packaging manufacturers. The T&M; segment offers airborne printing solutions, such as ToughWriter used to print hard copies of navigation maps, arrival and departure information, flight itineraries, weather maps, performance data, passenger data, and various air traffic control data; ToughSwitch, an ethernet switches used to connect multiple computers or Ethernet devices; TMX data acquisition systems; Daxus DXS-100 distributed data acquisition platform; SmartCorder DDX100 portable data acquisition systems for facility and field testing; and Everest EV-5000, a digital strip chart recording system used primarily in aerospace and defense. This segment serves aerospace and aerospace and defense, automotive, commercial airline, energy, manufacturing, and transportation industries. The company was formerly known as Astro-Med, Inc. and changed its name to AstroNova, Inc. in May 2016. AstroNova, Inc. was incorporated in 1969 and is headquartered in West Warwick, Rhode Island.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

AstroNova, Inc. has a Value Score of 70, which is considered to be undervalued.

When you look at AstroNova, Inc.’s price-to-sales ratio at 0.70 compared to the industry median at 0.96, this company has a lower price relative to revenue compared to its peers. This could make AstroNova, Inc.’s stock more attractive for value investors.

AstroNova, Inc.’s price-earnings ratio is 17.10 compared to the industry median at 19.80. This means it has a lower share price relative to earnings compared to its peers. This could make AstroNova, Inc. more attractive for value investors.

Now, let’s assess AstroNova, Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 9.1, when compared to the industry median of 12.8, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. AstroNova, Inc.’s shareholder yield is lower than its industry median ratio of (1.10%). Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. AstroNova, Inc.’s price-to-book ratio is higher than its industry median ratio of 1.18. This could make AstroNova, Inc. fairly attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at AstroNova, Inc.’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. AstroNova, Inc.’s price-to-free-cash-flow ratio is lower than its industry median ratio of 16.20. This could make AstroNova, Inc. more attractive because the lower P/FCF ratio indicates that AstroNova, Inc. is undervalued. The P/FCF ratio metric can also be viewed over a long-term time frame to see if the company's cash flow to share price value is generally improving or worsening.

Eastman Kodak Company’s Value Grade

Value Grade:

Eastman Kodak Company engages in the provision of hardware, software, consumables, and services to customers in the commercial print, packaging, publishing, manufacturing, and entertainment markets worldwide. The company operates through three segments: Print, Advanced Materials and Chemicals, and Brand. The Print segment provides digital offset plate offerings and computer-to-plate imaging solutions; press systems and components under the PROSPER brand name, as well as print inks and primers under the KODAK OPTIMAX, KODACHROME, and KODAK EKTACOLOR brand names; and PRINERGY, a workflow production software, which is used by customers to manage digital and conventional print content from file creation to output. This segment offers its products to commercial industries, including commercial print, direct mail, book publishing, newspapers and magazines, décor, and packaging/labels. The Advanced Materials and Chemicals segment engages in industrial film and chemicals, motion picture, advanced materials and functional printing, and IP licensing and analytical activities. This segment also comprises the Kodak Research Laboratories, which conducts research, develops new product or new business opportunities, and files patent applications for its inventions and innovations, as well as manages licensing of its intellectual property to third parties. The Brand segment engages in the licensing of Kodak brand to third parties. The company is also involved in the operation of Eastman Business Park, a technology center and industrial complex. It sells its products and services through direct sales, third party resellers, dealers, channel partners, and distributors. The company was founded in 1880 and is headquartered in Rochester, New York.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Eastman Kodak Company has a Value Score of 95, which is considered to be undervalued.

Eastman Kodak Company’s price-earnings ratio is 8.2 compared to the industry median at 19.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Eastman Kodak Company more attractive for value investors.

Eastman Kodak Company’s price-to-book ratio is higher than its peers. This could make Eastman Kodak Company less attractive for value investors when compared to the industry median at 1.18.

You can read more about Eastman Kodak Company’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Socket Mobile, Inc.’s Value Grade

Value Grade:

Socket Mobile, Inc. provides data capture and delivery solutions in the United States, Europe, Asia, and internationally. Its products and solutions are integrated into mobile applications for applications in the areas of point of sale, commercial services, asset tracking, manufacturing and quality control processes, transportation and logistics, event management, medical, and education. The company also offers cordless data capture devices that connect through Bluetooth and work with applications running on smartphones, mobile computers, and tablets; SocketScan and DuraScan 700 series, companion scanners and 800 series, attachable scanners, and wearables; and DuraSled, a barcode scanning sled that protects phones from impact damage and provides charging solutions. In addition, it offers D600, a handheld model to reads and writes various types of electronic SmartTags and transfers data with near-field communication (NFC); S550, a contactless membership card reader/writer; and S370 product that supports barcode scanning, and NFC reading and writing technologies. Further, the company provides SocketCam C820 and C860, which are camera-based barcode scanners; software developer kits, such as CaptureSDK that enables the App providers to modify captured data, control the placement of the barcoded or RFID data in their applications, and control the feedback to the user. It serves retail, commercial services, industrial and manufacturing, transportation and logistics, and healthcare industries through a network of distributors, online resellers, and application providers, as well as online stores. The company was formerly known as Socket Communications, Inc. and changed its name to Socket Mobile, Inc. in April 2008. Socket Mobile, Inc. was founded in 1992 and is headquartered in Fremont, California.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Socket Mobile, Inc. has a Value Score of 72, which is considered to be undervalued.

Socket Mobile, Inc.’s price-to-book ratio is higher than its peers. This could make Socket Mobile, Inc. less attractive for value investors when compared to the industry median at 1.18.

You can read more about Socket Mobile, Inc.’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Technology Hardware, Storage & Peripherals Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Technology Hardware, Storage & Peripherals stocks as well as other industrys.

Choosing Which of the 3 Best Technology Hardware, Storage & Peripherals Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• AstroNova, Inc. stock has a Value Grade of B.
• Eastman Kodak Company stock has a Value Grade of A.
• Socket Mobile, Inc. stock has a Value Grade of B.

Now that you have a bit more background about each of the 3 undervalued stocks in the Technology Hardware, Storage & Peripherals industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Technology Hardware, Storage & Peripherals Stocks

Want to learn more about Technology Hardware, Storage & Peripherals stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Technology Hardware, Storage & Peripherals Stocks for Wednesday, October 16
• 3 Undervalued Technology Hardware, Storage & Peripherals Stocks for Thursday, October 10
• Why Wearable Devices Ltd’s (WLDS) Stock Is Up 1900.00%
• 3 Undervalued Technology Hardware, Storage & Peripherals Stocks for Wednesday, October 09

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