Tech shares have been handled poorly this final yr. Granted, they actually have been maybe handled too nicely within the years main as much as the present downturn. Besides, some robust firms on the market at the moment are offering buyers with alternatives of a lifetime, together with this undervalued inventory.

And that undervalued inventory is…

Dye & Durham (TSX:DND) is the undervalued inventory I would definitely check out lately. Now at first look, you may not assume there’s a lot worth there. The corporate is coming off of poor earnings and shares are slumped, but the price-to-earnings (P/E) ratio remains to be fairly excessive.

However should you’re a long-term investor, don’t let these information scare you off. As a substitute, what you wish to take a look at is the safety offered by DND inventory. That’s the place the worth really lies. DND inventory offers software program and expertise options for monetary establishments, governments, legislation companies, and extra. These are establishments which can be merely not going anyplace. What’s extra, they want merchandise yr after yr, signing onto recurring contracts that convey with it recurring income.

Due to this, you possibly can virtually assure that DND inventory will probably be right here for years to come back. What’s extra, it can proceed to increase in these extremely safe areas of the market. In truth, even with poor earnings, it’s been doing simply that.

What’s occurred recently

DND inventory reported a web lack of $34.8 million throughout its second quarter, with income falling 3% in comparison with the identical time final yr. It is a enormous improve in web loss from the $4 million reported final yr.

Now on the floor, after all, this isn’t excellent news. However there’s something that long-term buyers ought to profit from. DND inventory is at the moment on observe to exceed its 10% value discount plan for the full-year of 2023. It’s buying shares for cancellation, and already diminished prices by $17.8 million within the first six months of fiscal 2023.

“We proceed to innovate our product providing and take concrete actions to fortify the enterprise within the present difficult surroundings. Our disciplined strategy towards capital allocation and price administration place the enterprise for sustained progress.”

Matt Proud, CEO of Dye & Durham

So what’s in retailer for 2024?

Ought to the corporate proceed in direction of this 10% value discount plan, it can create a possibility for these searching for an undervalued inventory. In the event you consider {that a} inventory has a powerful long-term plan, then that is precisely the time you wish to purchase it. Decide it up when it’s down, and you’ll sit up for years of progress sooner or later.

Shares of DND inventory are down about 29% within the final yr alone as of writing, however up 47% within the final three months. What’s extra, shares fell however solely barely after earnings, possible due to the energy of this plan.

So should you’re an investor wanting a long-term maintain and big returns by 2024, then I would definitely take into account DND inventory as an undervalued inventory to choose up now.