We have been saying for some time that it is getting more difficult to find undervalued stocks in the U.S. market (VTI), particularly in the tech sector. For example, a good proxy is The Technology
Raspberry Pi: Intriguing UK Technology Company
Summary
- Finding undervalued stocks in the U.S. tech sector is challenging; exploring markets like the UK and Netherlands, Raspberry Pi Holdings plc stands out.
- Raspberry Pi's innovative, low-cost computing devices are gaining traction in industrial and embedded markets, boasting strong revenue growth and profitability.
- Despite impressive financials and a culture of innovation, concerns remain about the sustainability of its competitive moat and potential conflicts of interest.
- Valuation appears reasonable with a PEG ratio below 1.0, but risks include increased competition and high channel inventory levels.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling shares, you should do your own research and reach your own conclusion, or consult a financial advisor. Investing includes risks, including loss of principal.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.