One of the best tech stocks to buy in October 2018 isn’t a flashy FANG stock or legacy Silicon Valley giant, but it could make you a killing.

Consider any innovative technology such as cloud computing, smart homes, self-driving vehicles, immunotherapy, and the Internet of Things (IoT), and it’s a certainty that the company we’re highlighting played a role.

The clients for this company run the spectrum from start-ups to some of the biggest companies on the planet, including Nike Inc. (NYSE: NKE) and Alphabet Inc. (NASDAQ: GOOGL).

While flying under the radar, this company has grown into the third-largest electronics manufacturing company in the world.

This is a mighty feat for a tech firm that most investors have never heard of.

And the innovations it fuels is why it’s one of the best tech stocks to own…

How Innovation Is Driving Tech’s Growth
While this is a backdoor play in the tech sector, it isn’t a small one by any measure.

The technology sector is primed for growth thanks to continued innovation. Just consider some of the recent breakthroughs…

  • Research firm MarketsandMarkets reports that the IoT market is projected to grow at a rate of 26.9% annually, from revenue of $170.57 billion in 2017 to $561.04 billion by 2022.
  • Allied Market Research says the market for self-driving vehicles is going to reach $54.23 billion by next year and then grow at an annual rate of 40% over the next seven years.
  • According to Statista, the smart home industry in the United States alone will close to double from $27.5 billion last year to $53.5 billion in 2022.

And one of the best tech stocks to buy now has become the top supplier for each one of these innovative trends. This company is a one-stop shop capable of taking any technology-based concept all the way through to production.

The company can create prototypes, protect a company’s intellectual property, establish a supply chain, and handle global distribution. Tech giants and entrepreneurs alike rest easy knowing that this firm has their back when they are developing or launching a new product or line.

This is just one of the reasons why this company was named among the world’s most admired by Forbes.

But the best reason to buy stock in this company is its sterling growth potential.

In fact, that’s exactly why it’s on our radar.

This company has a perfect Money Morning Stock VQScore™, meaning it’s a major growth target trading at the best buy-in price you’ll see.

The Best Tech Stock to Buy in October
Flex Ltd. (NASDAQ: FLEX) is a Singapore-based company that designs, engineers, manufactures, and distributes a variety of consumer products.

It was originally a Silicon Valley company founded in 1969 as Flectronics Inc., but it moved overseas and shortened its name in 2016. It has 200,000 employees that work across 100 locations in 40 countries.

Over the years, Flex’s list of projects has covered the spectrum of high-tech innovation, and it’s an impressive resume.

Google enlisted the help of Flex several years back, when it wanted to break into the market for video streaming. Flex already had experience with smart home technology and devices and was able to hand Google a prototype for Chromecast in just one month.

The product launched within 24 hours in 2013, and Google had to cancel its sales promotion because it couldn’t keep up with the overwhelming sales volume.

Several years prior, Flex worked with NASA to deliver the mobility functions for its Curiosity rover, which was dispatched to Mars in 2011. The company outfitted the rover with technology that included sensors for delivering feedback and movable joints. With this tech, operators on Earth can monitor the changing conditions on Mars to make adjustments to the rover’s performance.

NASA moved to extend the mission of Curiosity indefinitely in 2012. To date, it has been collecting valuable data on Mars for over 2,200 earth days.

Nike turned to Flex when the company decided that it had to speed up its turnaround time for custom-made sneakers. The company put together a team that was able to swiftly identify and solve Nike’s largest inefficiency.

Before this partnership, Nike’s practice of laser cutting was deemed inefficient because the oxygen mixing with the laser beam burnt edges on the fabric.

Flex’s team of chemists and engineers were able to redesign a laser-cutting system that eliminated those burnt edges, which allowed Nike to significantly reduce the wait time for a custom sneaker from weeks to just a few days.

Flex is able to tackle just about any electronic issue brought to it by a client, but it is also known for helping innovators. Through its Lab IX incubator program, the company assists new tech companies in bringing disruptive ideas and products to market.

One example is Grabit, which is an automation arm that is used in warehouses and factories. Instead of gripping or simple suction, the arm uses electro-adhesion to handle fragile items like flat-screen TVs and solar panels.

The Lab IX program gave Grabit’s designers the tools they need to perfect their products and processes and bring it to market.

These are impressive feats for a tech company, but it is still a tech stock that is flying under the radar, making it an even better profit play.

FactSet reports that eight analysts out of 11 rate FLEX a “Buy” and give it a price target nearly double its current price.

And this is still selling the stock short.

In the past year, FLEX’s price/earnings ratio is only 63% of the industry average, which means it’s trading at a significant discount before Wall Street catches on.

Wall Street gives FLEX a high price target of $20 a share, a 54% increase from today’s share price of $13.03.

Source: Money Morning