Two cheap tech stocks with huge potential to grow

Stocks we choose have PEG below 1. This helps us to choose stocks trading with discount and have 3 to 5 year grow expectation.

Stamps.com - (STMP): Internet company that offers logistics of individuals and companies. Technically price is on horizontal support, where we see price action pincers for probable increase in price. The company revenues rose 45.5% last year and it is expected to increase by 55.97% this year. The PEG is 0.75 which is a precondition to seek value in the shares. EPS of the company is expected to grow by 61.24% this year. The ratio of debt-equity is only 0.48.

Silicon Motion Technology Corporation - (SIMO): The company manufactures and markets universally compatible and low-power semiconductor solutions for the multimedia consumer electronics market. Low debt and high liquidity of the company makes it a good choice for purchase. The shares have risen almost double last year, as only for the last three months the growth was 33%. Expectations for earnings growth of 52.2% this year. SIMO PEG of only 0.96. Technically price is above diagonal support and CCI (50) is above 0.

Jr. Trader Nikolay Georgiev