3 Small Cap TECH STOCKS I’m Personally Buying RIGHT NOW

Today I'm sharing three smallcap tech stocks that I believe could be the next major winners. They're overlooked, fundamentally sound, and every one of them earns Wall Street Zen's highest possible quant rating. Now, if you like the sound of that, then please hit the like button as that informs YouTube's algorithms to send you more high-quality videos like this one. The first stock today is UMA with the symbol of UMA. But before I dig in, I should tell you who I am. I'm Steve Reitmeister, but all my friends call me Righty. I spent nearly 20 years as editor-in-chief of Zacks.com, and today I'm a partner at Wall Street Zen, where our quant rating system analyzes a wide array of data points to separate the best opportunities from all the noise and nonsense. Back to UMA. They run a cloud-based communications platform. We're talking about phone systems, messaging, and connectivity for small and medium-sized businesses, all delivered as software over the internet. It is the often-overlooked plumbing that keeps a business talking to its customers, and it's sticky, subscription-based revenue, the kind of recurring revenue that keeps flowing quarter after quarter. So, why is UMA an interesting stock right now? Because the market is finally starting to take notice. As of the week I'm recording, the stock is up roughly 30% in just the last 3 months. But even after that run, the engine underneath it is still firing on all cylinders, which points to even more upside ahead. Here's a notable number to consider. Its earnings are forecast to grow by more than 66% a year going forward. That is truly impressive earnings momentum, especially coming from a company most people have never heard of. Wall Street analysts are mostly asleep on this one, but the two analysts on board both have strong buy recommendations, and both are showing fair value price targets that are well above current levels. The benefit of light Wall Street coverage is that the more the company grows, the more likely it is to pick up new buy recommendations over time, each one of them acting as a catalyst to push shares higher. I should mention that I found all the stocks in this video using the Zen Ratings Quant Model. That is our system that evaluates 4,600 stocks every day across 115 different fundamental factors. It then boils it down to a simple letter grade from A to F. Yes, indeed, the A's are the best stocks. They have historically outperformed the market by nearly three to one. And yes, all three stocks today score that elite A rating. Note the Zen ratings are updated daily for over 4,600 stocks. So, it's a good habit to look up the fresh ratings for any stock you are interested in before purchase. So, go to the quote pages on wallstreetszen.com. As noted, UMA earns an A grade, which amounts to a strong buy recommendation. But, it's really more like an A+ because of ranks in the top 1% of all stocks based on its truly stellar fundamental profile. Underneath that overall grade sits seven component grades that show you where a company is strong and where it's soft. For UMA, the strength stacks up like this. It lands in the top 16% of all stocks for financial strength, top 7% for our AI component. We'll talk more about that one in a second. Top 5% for sentiment. And best of all, the top 1% of all stocks for growth. This is the most beneficial to find a stock likely to have earnings beats in the future. Quick word about that AI grade because most people get a little confused on that one for good reason. It is not measuring how much artificial intelligence the company is involved with. It's our system using AI to spot the kind of price and trading patterns that have historically shown up before a stock outperforms. So, a top 7% AI score like this stock is the model quietly tapping us on the shoulder to take notice. And so we are. Putting it together, we have an elite growth, strong sentiment, and the AI model pointing to likely future outperformance. It was this attractive picture that led me to add UMA to my Zen Investor newsletter portfolio, which features the top 20 stocks for the long haul. Perhaps, you consider adding UMA to your portfolio as well. Actually, all three stocks in this video today are part of my Zen Investor portfolio. So, be sure to stick around to the end to see which one of them you like the best. Heck, maybe all three of them will find a spot in your portfolio. By the way, if you want access to even more great stock picks, then you should join me every Monday at 7:00 p.m. Eastern time. That's when I host my weekly live training sessions with timely market insights and top stock recommendations. It's totally free, but you do need to register now. So, just go to wallstreetzen.com/live and join me on Monday. Now, on to our second stock in Riskified with the symbol of RSKD. This is perhaps the most under the radar name on the list today. Here's what they do. Every time you buy something online, someone has to decide in a split second whether that transaction is real or fraud. Riskified is a leading AI agent that makes that call for major online retailers. And they do something unusual. They actually guarantee that decision. If Riskified approves an order and it later turns out to be fraud, then they cover the cost, not the store. That's quite a lot of faith to put in your own product, which explains its much wider adoption and their ample business growth. So, why should we watch this stock now? Because the whole world is moving towards AI-driven commerce and fraud is getting more sophisticated right alongside of it. Riskified sits directly in the path of all that growth. The benefit of which is showing up in a lengthening earnings beat streak. This has significantly raised cash flow that they are using to buy back shares. Let's focus on that buyback for a moment. This company only has a market cap of $750 million, and they are using nearly half of that, like $350 million, to buy back shares. Truly enormous for their size. Remember that company insiders are making this decision, and they understand the company better than any Wall Street analyst. And they are betting big time on the upside of for these shares. Duly noted. Gladly, it's not just company management singing Riskified's praises. The Zen Rings model sees a lot to like here as well with another top-notch A-rated stock. The component grades reveal even more to like here. Riskified lands in the top 19% of all stocks for its financial strength, top 5% for that AI component, and top 3% for growth. Strong financials and strong growth on a company this small usually means a business that has figured out how to scale profitably. And that top-tier AI grade is the model flagging the same favorable price behavior we saw on the last stock pick. The drawback here is that Riskified is not consistently profitable yet on the bottom line, but this is an early-stage growth story, the most early stage of the three we're talking about today, and there's a lot of moving pieces for everything to fall in place. That is part of the risk with a company uh of this nature. The reward is getting on board an AI-powered e-commerce company with tremendous growth potential. Impressive earnings beat streak already unfolding and attractive fundamental profile as proven by the Zen ratings 115 factor review. This is a classic hidden gem setup where the ample reward likely outweighs that modest risk. Now, before the next stock, if you're been enjoying these selections, then do yourself a favor and subscribe and turn on the notification bell. That's because I pull out this kind of stock research frequently, and it's the best way to ensure you don't miss the next one. And now we move to the third and final stock in Taboola, with the symbol of TBLA. You have almost certainly used Taboola without knowing it. When you finish an article online and you see those recommended stories at the bottom of the page, that is often Taboola's content recommendation engine deciding what to show you next. They are an AI-driven advertising platform for what is called the open web, which is basically everything outside of Google and Facebook's ecosystems. And they have recently pushed beyond content recommendations into a much bigger performance advertising business. That expansion is working, and the market is starting to react with shares recently showing some strength. Gladly, their growth and value story point to even much more upside ahead. Let me spell that out for you. On the growth front, current estimates call for 25% earnings growth. That's well ahead of the industry average. Now, on the value front, Taboola looks generally cheap for a company growing this fast. As I'm recording, the stock is only trading for a price-to-earnings-growth ratio, right, PEG ratio, of 0.53. Now, 1.5 is considered normal these days. Anything under 1.0 is a screaming buy, and Taboola most certainly fits that label. In all, there are four covering analysts leading to a consensus strong buy recommendation with ample upside to fair value targets. And next up is the part I promised you, but first, a quick aside. If you want to learn more about hidden gems like these before the rest of the crowd, then the next thing you should do is to sign up for my next live training session every Monday night. I like to kick things off with a timely market update plus investment plan to outperform. Then I finish up with my trade of the week combining the best of the Zen Ring with my greater than 40 years of investing experience. Now, it's totally free, but you do need to register. Just go to wallstreetzen.com/live or click the link in the description or scan the QR code. Whichever it takes, I look forward to seeing you there on Monday. Back to Taboola. The Zen Ring's model doesn't like this stock. It loves this stock. That's because it scores in the top 1% of all 4,600 stocks analyzed pointing to a truly spectacular fundamental profile. Saying A rating sounds a bit too low for this one, so let's call Taboola A plus plus plus, okay? Its component grades continue to tell a value and quality story like I shared before. It lands in top 7% of all stocks for financial strength. Then we have a top 5% strong for value followed up by a top 2% reading for sentiment, which is the standout grade. These component grades tell us this is an incredibly well-run company with a strong balance sheet that is greatly undervalued but the smart money crowd are already starting to take notice. This is an attractive trifecta for any stock. I truly believe that their 25% earnings growth does prove to be true, then shares could easily double if not more in the year ahead. That is what the ultra low PEG is pointing out and that is why I have Taboola as our closer today to finish strong. So, there you have it. Three small-cap tech stocks all rated A and all still early in their growth stories. The common thread is simple. Each one is a strong business the market has not fully caught up with yet, which typically points to serious upside potential ahead. And by the way, the Zen Ranks are updated every day. You can pull a free rating for over 4,600 stocks yourself just by typing in a ticker at wallstreetzen.com. So, be sure to bookmark the site for frequent future visits. Now, I want to hear from you, which of these three stocks your favorite and why? Please share your thoughts in the comment section below for the benefit of our investment community. And if you're looking for more investing ideas, then I suggest you check out the video that's popping up on your screen right now. In that one, I break down several penny stocks that are definitely worth your attention.