Finding good tech stocks in the current environment can be a bit of a tussle. On one hand, you have struggling companies that are barely able to stay afloat. These companies are often bleeding cash and have slow growth rates, and even though they trade at a discount, these aren’t really investable companies that you can buy for solid returns in the coming years.

Then, you have companies that have performed well. The catch is that the market rally has taken most stocks with even the slightest bit of outperformance into nosebleed territories. When the macroeconomic climate inevitably changes, these stocks are going to tumble down just as fast as they climbed, so while you could hold onto these stocks, I wouldn’t recommend starting a new position in such stocks.

The truth is that there really isn’t any way around it. If finding good tech stocks is a tussle, it is better to brave it and dig deep into the market to find out which tech stocks are truly undervalued and worth buying right now. We’ve done the tussle for you; I believe you may find some tech stocks worth buying in the following list:

Cognex (CGNX)

AI stocks across the board have seen significant hype in the past few years — or at least you’d think so. Thankfully, there seem to be some gaps in the market where you can still find such stocks that are comparatively much cheaper than most of their AI peers. Cognex (NASDAQ: CGNX) is one of them.

Cognex is a technology company that creates “machine vision” systems — essentially giving machines the ability to see and understand what they’re looking at, similar to how human eyes and brains work.

They make cameras that can watch manufacturing processes and the company’s software can also inspect products for defects and guide robots to pick up and place items correctly as well as read codes and labels on them. In my opinion, the company’s products are being underutilized right now, but we will likely see a spike in growth in the coming years as big logistics companies are pushing massively for automation.

In Q3 2024, Cognex reported revenue of $235 million, up 19% year-over-year. Their net income also jumped 56% to $30 million.

The company expects Q4 2024 revenue between $210 million and $230 million. But the really exciting part is their long-term growth forecast: analysts expect Cognex’s revenue to grow by 12% annually over the next three years. It beat both the top line and the bottom line in Q3, so I think there’s a good chance it can beat estimates in Q4 too.

The stock is down 62% from its 2021 peak, so I believe CGNX is closer than ever to turning a corner. It also has a 0.89% dividend yield to sweeten the deal.

N-able (NABL)

N-able (NYSE: NABL) is sort of a “control center” that lets IT service providers monitor and fix computers and networks. And if you think that’s just a fancier way of describing TeamViewer, you’d be partially right.

There are some differences, however. For example, N-able works on both Mac and Windows, whereas the TeamViewer engine only allows connections to Windows or Mac devices from Windows computers. You can read the full list of differences from N-able’s own user guide documentation here.

In my opinion, N-able has an edge when it comes to servicing IT providers and medium-sized companies and has more extensive monitoring and troubleshooting capabilities. You’re also getting more bang for your buck since it costs $35/month compared to TeamViewer’s $49/month package.

TeamViewer currently has a 55.7% market share in the remote support category, whereas N-able Take Control has just 0.06% market share. Obviously, this is because TeamViewer is more well-known and can serve a broader clientele, but I still think N-able is being underestimated by the market.

NABL stock is down 29% in the past year despite showing some positive headline metrics. Top-line growth came in at $116.4 million, up 8.3% year-over-year and the company remains profitable with Q3 GAAP net income at $10.8 million. Adjusted EBITDA of $44.8 million puts the margin at a solid 38.5%. The decline here is mostly due to Q4 2024 guidance projecting only 3-4% growth.

In my opinion, the market is overly focused on the near-term growth deceleration instead of the long-term potential. The recent decline already prices in a lot of that decline, so I think this stock can outperform on any good news in the coming quarters.

SentinelOne (S)

SentinelOne (NYSE: S) is probably the most well-known company on this list. It is one of the biggest cybersecurity firms and has some of the most robust AI integration.

However, the market hasn’t been so kind to SentinelOne as it is still down 18% in the past year and is yet to recover to its 2021 highs.

I believe the recent decline has dragged it below its intrinsic value. SentinelOne is not profitable right now, but it has a $660 million cash pile and is expected to break even for the full year and then expand those profits significantly next year. Analysts expect $110 million in operating income in 2027, along with sales reaching $1.3 billion in the same year.

If AI-powered cyberattacks become more common and dangerous, I think SentinelOne can surpass these expectations significantly in the coming years. Even if it doesn’t, once the first profits start coming in starting next year, I expect a much more positive outlook for the stock.