Free Trial

Two Value Tech Stocks Trading Near a Breakout Level

Composition of human profile, connecting information technology, internet and artificial intelligence. Learn more about two value tech stocks making waves.

Key Points

  • The technology sector has outperformed the broader market, with the Invesco QQQ up 44% YTD compared to the SPDR S&P 500 ETF's 19.48%.
  • Investors should consider value stocks in the tech sector, with the potential for the tech rally to endure longer than anticipated.
  • Adeia and Diodes, two promising value tech names, offer substantial institutional ownership and positive analyst sentiment.
  • 5 stocks we like better than Diodes.

In today's ever-evolving investment landscape, technology has emerged as a clear standout, surpassing the broader market with its remarkable performance year-to-date. YTD, popular technology ETF Invesco QQQ NASDAQ: QQQ is up 44%, while the SPDR S&P 500 ETF NYSE: SPY is up 19.48%, respectively. 

As the digital revolution continues to reshape industries and drive unparalleled innovation, the allure of tech companies' growth potential remains undeniable and rests in the hands of value tech stocks. 

In this dynamic environment, investors might benefit by gazing upon value stocks within the technology sector that show promise and capture institutional players' attention. By aligning with companies boasting robust fundamentals and a strategic market position, there is a compelling reason to believe that the tech rally may surpass short-term expectations and endure for an extended period. With technology continuing to shape the world, those who can identify and invest in value tech names stand to reap substantial rewards in the long run. 

Adeia Inc.

Adeia Inc. NASDAQ: ADEA is a global media and semiconductor intellectual property licensing company. The company licenses its patent portfolios in various markets, including multichannel video programming distributors (cable, satellite and telecommunications TV providers), video service providers and social media companies, consumer electronics manufacturers (smart TVs, streaming devices, mobile devices, etc.), and semiconductors (sensors, radio frequency components, memory, logic devices, etc.).

Institutional ownership in ADEA is currently at 90.91%. Over the last 12 months, there were 117 institutional buyers and only seven institutional sellers. Total institutional inflows have been $602 million and $397 million in outflows. More recently, $600 million of institutional purchasing occurred in the year's first half and $400,000 in outflows.

The consensus price target is $15.67, predicting a 30.45% upside. Both analysts have ADEA as a "buy." ADEA, based on its P/E of 11.19, is trading at a fair valuation. 

The stock is up almost 27% year-to-date, trading near a significant resistance level of $12. Twelve dollars is a multi-year resistance level, making the current setup in ADEA attractive. If the stock can hold above this level of resistance, there might be a shift in momentum and trend.

Adeia MarketRank forecast

Diodes Inc.

Diodes Inc. NASDAQ: DIOD manufactures and supplies application-specific standard products in the global semiconductor markets. Its offerings include discrete semiconductor products like MOSFETs and Schottky rectifiers, analog products like power management devices, operational amplifiers, LED lighting drivers and sensor products like hall-effect sensors and motor drivers.

Diodes has a staggering institutional ownership, at 96.95%. Institutional inflows have been $532 million, compared to $344 million in outflows, comprised of 215 institutional buyers and 162 institutional sellers. In the year's first half, institutional inflows have been $165 million versus $138 million outflows. The largest institutional shareholder in DIOD is BlackRock Inc., with a 15.24% ownership.

Analysts see an upside in the stock, with a consensus price target predicting a 10.5% upside, based on the consensus analyst price target of $103.83. Based on the five analyst ratings, Diodes has a "moderate buy" rating, with four analysts placing the stock as a "buy" and one as a "hold." Like ADEA, DIOD's P/E of 13.11 indicates that the stock trades in value territory. 

Year-to-date, DIOD is up 23%, similar to ADEA, trading near a critical resistance and breakout level of $97. A significant momentum shift might occur if the stock can push above $97 and hold firmly higher.

Diodes Inc. on MarketBeat overview

Should you invest $1,000 in Diodes right now?

Before you consider Diodes, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Diodes wasn't on the list.

While Diodes currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

20 Stocks to Sell Now Cover

MarketBeat has just released its list of 20 stocks that Wall Street analysts hate. These companies may appear to have good fundamentals, but top analysts smell something seriously rotten. Are any of these companies lurking around your portfolio? Find out by clicking the link below.

Get This Free Report
Ryan Hasson
About The Author

Ryan Hasson

Contributing Author

Technical Analysis, Momentum Trading, Risk Management

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Adeia (ADEA)
3.692 of 5 stars
$11.84+2.5%1.69%34.82Buy$15.50
Diodes (DIOD)
3.1088 of 5 stars
$64.60+3.1%N/A17.60Hold$73.20
Compare These Stocks  Add These Stocks to My Watchlist 


Featured Articles and Offers

Recent Videos

Broadcom’s Momentum Returns: Will It Reach New Highs?
Toyota’s Big Bet on Joby: Will Air Taxis Revolutionize Travel by 2025?
UnitedHealth Group: A Healthcare Giant with Strong Dividends

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines