High-Potential Tech Stocks Under $20 to Watch in 2024

Thanks to the digitization of the world, the sector is back in limelight once more. Investors are especially interested in the tech stock since the models boosting return and revenues for them remain subscriptions and Software as Service that offer predictable potential earnings in the future.

Overview of Promising Tech Stocks

In such an environment, it would be prudent for investors to track high-quality tech stocks: Full Truck Alliance Co. Ltd. (YMM), CCC Intelligent Solutions Holdings Inc. (CCCS), and Sprinklr, Inc. (CXM), trading below $20, and with robust growth in their disruptive technologies and refreshing business models. It also enjoys more than 30% upside potential.

Those include artificial intelligence, cloud computing, security, and digital payments, among a slew of other strategic technologies shaping new industry definitions and consumer behavior. Gartner research supports this optimism with an 8 percent year-over-year growth forecast for worldwide IT spending in 2024, to reach $5.26 trillion.

According to an AI report released by PwC, AI is expected to be a strongly impactful feature for the next coming years in terms of contributions and addition to the world’s economy. By 2030, AI is expected to contribute up to $15.70 trillion to the global economy. As a result, many companies in the tech sector have reported very strong earnings with a relatively optimistic note. Investor confidence grows.

Featured Stock Details:

Full Truck Alliance Co. Ltd. (YMM)

YMM is a freight dispatch platform headquartered in Guiyang, China. Primarily, this company is known for developing cloud computing, big data, mobile internet, and artificial intelligence technology, among other services.

As far as the forward non-GAAP P/E goes, YMM is trading at 14.31x, which stands 24.2% lower than its industry average of 18.89x. The forward EV/EBIT and Price/Cash flow multiples of 13.84 and 10.56 are also 11.9% and 27.6% lower than their respective industry averages of 15.71 and 14.58.

3 STOCKS TO DOUBLE THIS YEAR

In its second quarter that closed on June 30, 2024, YMM generated net revenue of RMB2.76 billion ($380.38 million). The adjusted income from operations of the company resulted at RMB698.97 million ($96.18 million) or increasing by 55.1% year-over-year. Also, its adjusted net income was RMB970.86 million ($133.59 million) and RMB0.05 per share, showing 34.3% and 66.7% increases year-over-year, respectively.

The third quarter of 2024 total net revenues are expected to be within the range of RMB2.76 billion to RMB2.82 billion, representing year-over-year growth of about 21.9% to 24.6%.

Analysts expect YMM revenue for the third quarter that ends on September 2024 to be at a climb of 23.1% year over year, $388.17 million, with its EPS for the same period expected to jump 33.5% year over year from the prior year’s EPS of $0.11. And, it has also outmatched the street revenue and EPS estimates in all the last four trailing quarters, which is fantastic.

The shares have rallied 8.9% over the last six months and closed the last trading session at $7.10.

Of five analysts who rated YMM, four recommended buying the company’s stock and one called for a Hold. The 12-month target price of $11.02 presents an upside of 55.2% from the last closing price. Price targets range from a low of $9 to a high of $12.

YMM’s ranks appear on POWR Ratings. The stock has a grade of B for Growth and Momentum. POWR Ratings are derived from 118 unique factors, each weighted to optimal levels.

It is ranked at 72nd place among 125 stocks from the Software – Application industry. Click here for access to the other ratings for YMM (Value, Stability, Sentiment, and Quality).

CCC Intelligent Solutions Holdings Inc. (CCCS)

CCCS is offering SaaS to the P&C insurance economy. The company’s cloud-based software acts as a service platform that connects trading partners, facilitates commerce, and enables digital workflow across the platform through artificial intelligence.

On September 4, CCCS launched CCC Payroll, a new solution to be leveraged in streamlining, making more efficient, and having more accuracy in payroll management in collision shops. Its market release will open up shops’ opportunities to track production and labor in a single system: the CCC ONE Platform.

July 30 saw the company launch CCC® Intelligent Reinspection, a new solution designed to enable auto insurers to more efficiently inspect incoming estimates from repair facilities, streamlining the workflows of repairers and claims resolutions. In using AI-fortified analysis and audit capabilities, it will gauge incoming shop estimates according to rules provided by insurers.

In forward Price/Book, CCCS trades at 3.33x, which falls 17.2% short of the industry average at 4.02x.

CCCS reported $232.62 million revenues for the second quarter that ended June 30, 2024. This was up 9.9% compared to the prior year’s second quarter. Adjusted gross profit was at $182.08 million, which rises 12.4% from the prior year quarter with an adjusted gross profit margin of 78% or 100 bps higher than the prior year quarter.

Adjusted Net income was $56.19 million and $0.09 per share with 17.4% and 12.5% year over year growth, respectively. Adjusted EBITDA also grew to $95.79 million or 18.4% year-over-year.

Under CCCS’s FY 2024 business outlook, the company said it projects revenue to be between $941 million and $945 million. Adjusted EBITDA is expected to be in a range of $391 million to $395 million.

It’s trading at a price-to-earnings-growth ratio of 0.98, lower than its peer median of 2.28. The fiscal third-quarter consensus revenue estimate is $237.36 million, representing a 7.3% year-over-year increase. The consensus EPS estimate for the same quarter is pegged at $0.09, showing marginal improvement from the year-earlier quarter. The company has an excellent surprise history, outpacing consensus revenue and EPS estimates in every one of its last four quarters.

The stock has been marginally appreciated in the past month and closed at $10.43 on the last trading session.

For CCCS, the average target price is $13.89 based on 10 Wall Street analysts offering 12-month price targets in the last three months. In fact, this level presents an upside of 33.2% from the last price, while the high forecast stands at $15 and the low forecast at $13.

CCCS’ POWR Ratings point toward a positive trend. All things considered, the stock has a B grade, which means a Buy in our proprietary rating system.

CCCS’ has a B for Growth, Stability, and Sentiment. It is the #3 ranked stock in the A-rated Software – SAAS industry. Click here to access other ratings of CCCS for Value, Momentum, and Quality.

Sprinklr, Inc. (CXM)

CXM offers enterprise cloud software solutions across the world. The company runs the Unified Customer Experience Management platform, an AI-powered platform wherein its software enables customer-facing teams to collaborate across internal silos, communicate across digital channels and leverage a complete suite of capabilities in delivering customer experiences.

On June 27, CXM deepens its partnership with Snapchat to assist brands in managing all organic and paid Snapchat content within one unified platform. Brands will be able to publish Snapchat Stories, distribute Spotlight Content, and amplify this organic content using ads all within Sprinklr, saving time and expense while reaching a powerful audience.

For the same period, CXM and Reddit, Inc. announced that it would expand its strategic partnership. The partnership exists across both Reddit’s Data and Advertising APIs, with CXM openly as their first official partner.

Now, in terms of forward EV/Sales, CXM is trading at 1.88x, which is -31.7% below the industry average at 2.75x. In its forward Price/Sales ratio, this stock offers 11.9% below the industry average of 2.73x. Its own forward EV/EBITDA multiple stands at 13.26, while the industry average is 13.77x.

For the second quarter of 2025, which closed on July 31, CXM revenues came in at 10.5% year-over-year to $197.21 million. The company’s non-GAAP gross profit totaled $143.61 million, which was up 5.8% compared to the same quarter a year earlier. Free cash flow improved 89.4% year-over-year to $16.53 million. Net income under generally accepted accounting principles for the quarter totaled $42.44 million or $0.15 per share.

The company expects subscription revenue for the full fiscal year to be in the range of $710.50 million to $712.50 million. The company expects total revenue in the range of $785 million to $787 million. It also expects non-GAAP operating income to vary between $80.5 million and $81.5 million, and non-GAAP net income per share to be within a range of $0.32 to $0.33 in the full fiscal year.

Market Outlook and Growth Potential

Evidently, street expects CXM to post revenue for the third quarter, which ended October 2024, up 5.5% year over year to $196.49 million. However, the consensus EPS estimate for the same period points to a 27.3% year-over-year decline to $0.08.

CXM shares declined 1.5% intraday, closing out the last trading session at $7.36.

On average, 12 Wall Street analysts who issued 12-month price targets for CXM over the past three months have an average target price of $10.30. It has a potential upside of about 40% from the last price. This does not go beyond the high forecast of $17 and low forecast of $8.

CXM has a mixed profile that POWR Ratings reflect. In Value and Quality, the stock is graded a B. It ranks #60 in the 125 stocks of the industry, Software – Application.

Besides what’s mentioned above, we have rated CXM for Growth, Momentum, Stability and Sentiment, as well. Get all ratings of CXM.

Investors seeking high-growth opportunities in the tech sector should consider these three stocks priced below $20. With a focus on artificial intelligence (AI), software-as-a-service (SaaS), and cloud computing, these companies have demonstrated immense potential for future growth. Their affordable stock prices present an attractive opportunity for investors looking to capitalize on the rapidly evolving technology landscape.

YMM was trading at $7.35 a share on Wednesday afternoon, having increased by 25 cents (+3.52%). The shares are up 6.64% year-to-date, compares with a 16.12% gain in the benchmark S&P 500 index over the same time.