3 Under-the-Radar Tech Stocks Quietly Powering the Digital Revolution
Fueled by groundbreaking breakthroughs and worldwide demand for better solutions, the technology industry is on a stable growth path. Thus, investing in fundamentally stable tech stocks, Motorola Solutions, Inc. (MSI), Power Integrations, Inc. (POWI), and CI&T Inc. (CINT) could be a wise move for investors looking to capitalize on the sector’s growth.
The tech industry is built on change, constantly evolving to meet shifting consumer demands. With AI integration surging across industries, companies are working tirelessly to stay ahead. By developing faster, smarter AI tools, they ensure innovation never slows, keeping pace with the ever-accelerating wave of technological advancement.
With such a wide spread of possibilities on how AI could change our perception of traditional operations, companies have engaged in a race to provide customers with the best version of the AI model. Big tech companies are set to spend more than $300 billion in 2025 alone on AI research and development, showcasing the industry’s commitment to providing the best product for its customers.
On the other hand, networking and connectivity all over the world have been transformed by the release and worldwide deployment of 5G. As of 2024, more than 2 billion global 5G connections have been reached, with North America ranking #1 in 5G adoption and contributing towards 32% of all wireless cellular connections.
Additionally, global IT spending is projected to grow by 8.3% this year, reaching $5.44 trillion, driven by increased adoption of cloud solutions, cybersecurity measures, automation, and advanced data management tools.
Now, let us dive deep into the fundamentals of three under-the-radar tech stocks, starting with #3.
Stock #3: Motorola Solutions, Inc. (MSI)
MSI provides public safety and enterprise security solutions. The company’s offerings include a portfolio of infrastructure, devices, accessories, and video security devices, and infrastructure. The company’s segments include Products and Systems Integration, and Software and Services.
On February 23, MSI announced the acquisition of RapidDeploy, a complementary cloud-native 911 solution provider for public safety, based in Austin, Texas. The acquisition could expand MSI’s emergency response and enhance its decision-making portfolio.
On February 18, MSI secured the highest-level security authorization from the Federal Risk and Authorization Management Program (FedRAMP®) for its federal cloud. The authorization allows federal agencies to procure and deploy select MSI solutions. This could enhance the company’s presence in the market for communications for government personnel.
For the fiscal 2024 fourth quarter that ended December 31, 2024, MSI’s net sales increased 8.4% year-over-year to $10.82 billion. Its operating earnings rose 17.2% from the year-ago value to $2.69 billion. Additionally, non-GAAP net earnings and non-GAAP EPS attributable to MSI grew 3.7% and 3.6% from the prior year’s quarter to $693 million and $4.04, respectively.
Analysts expect MSI’s revenue and EPS for the fiscal 2025 first quarter (ending in March) to increase 5.4% and 7.1% year-over-year to $2.52 billion and $3.01, respectively. In addition, the company surpassed the consensus revenue and EPS estimates in each of the four trailing quarters, which is impressive.
MSI’s stock has surged 16.9% over the past nine months and 29.1% over the past year, closing the last trading session at $426.27.
MSI’s POWR Ratings reflect its sound fundamentals. The stock has an overall rating of B, translating to a Buy in our proprietary rating system. The POWR Ratings assess stocks by 118 different factors, each with its own weighting.
MSI has a B grade for Momentum, Quality, and Stability. Within the B-rated Technology – Communication/Networking industry, it is ranked #14 out of 47 stocks.
In addition to the POWR Rating highlighted above, you can check MSI’s ratings for Sentiment, Value, and Growth here.
Stock #2: Power Integrations, Inc. (POWI)
POWI designs, develops, manufactures, and markets analog and mixed-signal integrated circuits, and other electronic components and circuitry used in high-voltage power conversion.
On January 23, POWI announced the launch of MotorXpert™ v3.0, a software suite for configuration, control, and sensing of BLDC inverters, utilizing the company’s BridgeSwitch™ motor-driver ICs. Coming with a free seamless integration with POWI’s shunt-less and sensorless technology for field-oriented control (FOC), the new release expands the company’s software portfolio.
For the fiscal 2024 fourth quarter that ended December 31, 2024, POWI’s net revenues amounted to $105.25 million. Its non-GAAP income from operations was reported to be $13.36 million. Moreover, the company’s non-GAAP net income and non-GAAP net income per share came in at $17.21 million and $0.30, respectively.
Street expects POWI’s revenue and EPS for the fiscal 2025 first-quarter ending in March to increase 15% and 58.1% year-over-year to $105.44 million and $0.28, respectively. Furthermore, the company has surpassed the consensus revenue and EPS estimates in each of the four trailing quarters, which is noteworthy.
Shares of POWI have surged 3.9% over the past month, closing the last trading session at $64.35.
POWI’s POWR Ratings reflect its robust prospects. The stock has an overall rating of B, translating to a Buy in our proprietary rating system.
POWI has a B grade for Growth, Sentiment, and Quality. Within the Semiconductor & Wireless Chip industry, POWI is ranked #11 out of 90 stocks.
To access POWI’s Stability, Value, and Momentum ratings, click here.
Stock #1: CI&T Inc. (CINT)
Headquartered in Campinas, Brazil, CINT provides strategy, design, and software engineering services to enable digital transformation for enterprises and companies. The company also develops customizable software by implementing software solutions, including machine learning, artificial intelligence, analytics, and cloud migration.
On January 27, CINT announced a new three-year strategy plan to enhance the efficiency of the organization. The company has set objectives to advance with the Cint Exchange, accelerate new ways for growth, and streamline its operations for 2025.
Aptly called Cint 2.0, the company has set robust financial targets as well. The company expects to boost its sales growth to more than 10%. Moreover, it aims to achieve a medium-term EBITA margin of 25%. This could aid the company in delivering better results for its shareholders and achieve long-term stability.
For the fiscal 2024 fourth quarter that ended December 31, 2024, CINT’s net sales amounted to €45.36 million ($47.61 million). Its operating profit was reported to be €1.37 million ($1.44 million). Additionally, the company’s profit for the period and EPS came in at €2.50 million ($2.62 million) and €0.01, respectively.
The consensus revenue and EPS estimates of $106.42 million and $0.07 for the fiscal 2025 first quarter (ending in March) reflect a year-over-year increase of 4.8% and 24.2%, respectively. Also, the company surpassed consensus EPS estimates in each of the four trailing quarters.
CINT’s stock has surged 4.7% over the past six months and 62.4% over the past nine months to close the last trading session at $7.39.
The stock’s fundamentals are mirrored in its POWR Ratings. CINT has a B grade for Sentiment.
Within the Software – Application industry, CINT is ranked #59 out of 126 stocks. Click here to access CINT’s Quality, Value, Growth, Momentum, and Stability ratings.
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MSI shares were unchanged in premarket trading Thursday. Year-to-date, MSI has declined -7.78%, versus a 1.44% rise in the benchmark S&P 500 index during the same period.
About the Author: Aritra_Gangopadhyay
Aritra is a financial journalist dedicated to breaking down complex financial topics into simple, actionable insights. Holding a Master’s degree in Economics, he uses his analytical expertise to help investors uncover unique opportunities for long-term success. More…