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 Monday, November 04, 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.

Boxlight Corporation’s Value Grade

Value Grade:

Boxlight Corporation designs, produces, and distributes interactive technology solutions for the education, health, corporate, military, and government sectors in the Americas, Europe, the Middle East, Africa, and internationally. The company provides interactive and non-interactive flat panel displays and whiteboards, LED video walls, digital signages, classroom audio and campus communication, cameras and other peripherals, and media players; and accessory document cameras, teacher pads for remote control, assessment systems, and front-of-class display products under the Mimio and Clevertouch brands. It also offers MimioStudio Interactive Instructional software that enables the creation, editing, and presentation of interactive instructional lessons and activities; MimioMobile, a software accessory for MimioStudio; Oktopus Instructional and Whiteboarding software, which enables the creation, editing, and presentation of interactive instructional lessons and activities; Notes+, a software accessory; GameZones, a multi-student interactive gaming software; MimioConnect, an online student engagement platform; and LYNX, a lesson building app. In addition, the company provides Juno, a towering standard of sound quality that reinforces a teacher’s voice; Mimio MyBot system for robotics learning; Robo3D printers; MyStemKits, which offers lesson plans for grades K-12 math and science teachers; MimioView document camera; EzRoom, an integrated AV solution; Lyrik, an amplification solution; and Conductor School Communication System, an IP-based campus-wide communication and control solution; and accessories, such as mobile carts, installation accessories, and wall-mount accessories for interactive LED flat-panels and audio solutions. Further, it offers classroom training, professional development, and educator certification services. The company was formerly known as Logical Choice Corporation. Boxlight Corporation was founded in 1985 and is headquartered in Duluth, Georgia.

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.

Boxlight Corporation has a Value Score of 82, which is considered to be undervalued.

When you look at Boxlight Corporation’s price-to-sales ratio at 0.03 compared to the industry median at 0.90, this company has a lower price relative to revenue compared to its peers. This could make Boxlight Corporation’s stock more attractive for value investors.

Now, let’s assess Boxlight Corporation’s EV/EBITDA ratio, also known as enterprise multiple. At 18.1, when compared to the industry median of 12.3, the company may be considered overvalued 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. Boxlight Corporation’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. Boxlight Corporation’s price-to-book ratio is lower than its industry median ratio of 1.21. This could make Boxlight Corporation more attractive to investors looking for a new addition to their portfolio.

Lastly, let’s take a look at Boxlight Corporation’s price-to-free-cash-flow ratio (P/FCF), which can indicate a company’s market value relative to its operating cash flow. Boxlight Corporation’s price-to-free-cash-flow ratio is lower than its industry median ratio of 16.80. This could make Boxlight Corporation more attractive because the lower P/FCF ratio indicates that Boxlight Corporation 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.

CompoSecure, Inc.’s Value Grade

Value Grade:

CompoSecure, Inc. manufactures and designs metal, composite, and proprietary financial transaction cards in the United States and internationally. Its primary metal form factors include embedded, metal veneer lite, metal veneer, and full metal products. The company also offers Arculus Cold Storage Wallet, a three-factor authentication solution, which supports specific digital assets, including Bitcoin, Ethereum, non-fungible tokens and others. In addition, it offers Payments + Arculus Secure Authenticate, white-labeled cold storage wallet, Payments + Arculus Cold Storage, and Payments + Arculus Authentication + Arculus Cold Storage. The company serves financial institutions, plastic card manufacturers, system integrators, and security specialists. CompoSecure, Inc. was founded in 1910 and is based in Somerset, New Jersey. As of September 17, 2024, CompoSecure, Inc. operates as a subsidiary of Resolute Holdings I, LP.

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.

CompoSecure, Inc. has a Value Score of 65, which is considered to be undervalued.

CompoSecure, Inc.’s price-earnings ratio is 14.8 compared to the industry median at 14.8. This means that it has a higher price relative to its earnings compared to its peers. This makes CompoSecure, Inc. fairly attractive for value investors.

You can read more about CompoSecure, 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.

Immersion Corporation’s Value Grade

Value Grade:

Immersion Corporation, together with its subsidiaries, engages in the creation, design, development, and licensing of haptic technologies that allow people to use their sense of touch to engage with and experience various digital products in North America, Europe, and Asia. The company provides technology, patent, and combined licenses. It serves markets, including mobility, gaming, automotive, virtual and augmented reality, and wearables, as well as residential, commercial, and industrial Internet of Things. The company was incorporated in 1993 and is headquartered in Aventura, Florida.

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.

Immersion Corporation has a Value Score of 86, which is considered to be undervalued.

Immersion Corporation’s price-earnings ratio is 4.1 compared to the industry median at 14.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Immersion Corporation more attractive for value investors.

Immersion Corporation’s price-to-book ratio is lower than its peers. This could make Immersion Corporation more attractive for value investors when compared to the industry median at 1.21.

You can read more about Immersion Corporation’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.

• Boxlight Corporation stock has a Value Grade of A.
• CompoSecure, Inc. stock has a Value Grade of B.
• Immersion Corporation stock has a Value Grade of A.

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 Monday, November 04
• Meeting Your Asset Allocation Needs With Schwab Funds and ETFs
• When Diversification Takes a Back Seat in Index Funds
• 3 Undervalued Technology Hardware, Storage & Peripherals Stocks for Monday, October 28

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith and we accept no liability for any errors or omissions. The full disclaimer can be read here.