2 Under-the-Radar Tech Stocks to Buy in 2022

Some of the best buys on the market are flying way under the radar.

You don’t see many headlines about cloud-based communications veteran 8×8 (NYSE: EGHT) or warning systems expert Everbridge (NASDAQ: EVBG), for example. Yet both companies are leaders in their respective fields, and their stocks have recently gone through some dramatic swings. I’m talking about two high-quality companies whose shares recently reached all-time highs — but they are also on fire sale because of the marketwide retreat from growth stocks in 2022.

As a result, I think 8×8 and Everbridge are great buys right now. Let me show you why.

Share prices are going down

I’m not kidding about the fire sale. In the past six months, the S&P 500 (SNPINDEX: ^GSPC) market index showed a 0.5% return and the tech-heavy Nasdaq Composite (NASDAQINDEX: ^IXIC) index fell 8%. Here’s how Everbridge and 8×8 performed over the same period:

EGHT data by YCharts

Market makers had their reasons for these price drops, of course.

Everbridge is looking for a new CEO since former leader David Meredith signed out in December. The stock plunged on that announcement. This was not a disagreement or a forced resignation, but a career move. Meredith is now CEO of privately held cloud computing specialist Boomi, where his proven ability to scale up software-as-a-service businesses can be applied to a new opportunity. Meanwhile, his legacy lives on at Everbridge, which is seen as a fantastic buyout target at this bargain-bin valuation.

For 8×8, the downtrend started with the fourth-quarter 2021 earnings report in May of last year. The company beat Wall Street’s expectations, but the surprise wasn’t large enough to impress 8×8’s shareholders. Share prices have been sliding downward ever since, even though 8×8 has delivered positive earnings and revenue surprises in every quarterly report.

Sales are soaring

So the bears have their nits to pick, but the bulls have a far stronger argument. Tell me, do the revenue trends in this chart make you think that the two companies are in trouble?

EGHT Revenue (TTM) data by YCharts

That’s certainly not what I see. Both 8×8 and Everbridge are enjoying extraordinary revenue growth, despite the market’s misgivings.

Activist shareholders may soon force Everbridge into a buyout and telecom equipment giant LM Ericsson (NASDAQ: ERIC) is in the process of acquiring 8×8 peer Vonage Holdings (NASDAQ: VG). Further consolidation in the cloud communications space could bring suitors to 8×8’s doorstep, too.

And if the potential buyout opportunities don’t play out, 8×8 and Everbridge have plenty of current and future growth to explore on their own. Again, their sales are skyrocketing and both companies are in the habit of exceeding analyst expectations in each earnings report.

So you may not see these names in the media spotlight too often, despite their long operating histories and proven success stories. Don’t let that stop you from taking a closer look, because 8×8 and Everbridge look like no-brainer buys right now.

10 stocks we like better than 8×8
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and 8×8 wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of April 7, 2022

Anders Bylund has no position in any of the stocks mentioned. The Motley Fool owns and recommends Everbridge. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.