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5 Tech Sector Bargains to Buy in 2013

Garmin is the biggest GPS and navigation system maker in the world. The firm's products range from ubiquitous in-car devices to advanced electronic flight deck systems used in the latest business jets. That wide range gives Garmin some key advantages that the competition can't match. Because Garmin spends considerable R&D dollars on its bigger ticket aviation and marine navigation systems, it's able to develop exciting technologies that can flow down to its lowest-common-denominator automotive GPS business at minimal cost. So, since Garmin's high-end operations pay for themselves, it can squeeze bigger margins out of its efforts.

That dramatically lessens the risks surrounding the competition in the automotive GPS space. Garmin's embrace of the fitness and sports markets are offering some new big opportunities in 2013: the firm's line of GPS-equipped golf watches was a huge seller for the holiday season. As Garmin leverages its tech across more markets than peers can, it should continue to dominate its market. Ample cash and a 4.3% dividend yield don't hurt either.

Intel

It's been a rough year for Intel (INTC - Get Report) -- in the last 12 months, shares of the chipmaking giant have slid around 12%, giving Intel underperformance that's closing in on 25% versus the S&P 500. That poor price performance has given Intel a bargain pricetag in January: right now, the firm trades for a paltry P/E of 8.9, a nearly 60% discount to the rest of the tech sector. The firm's cash flows are even cheaper for its share price right now -- that metric sits at a 70% discount to the tech sector.

Intel is the dominant microchip maker in the world. The firm takes home around 80% of the global microprocessor business, manufacturing the "brains" behind the vast majority of computers coming off of assembly lines. But despite that dominance, there's still considerable room for growth, especially given the ballooning demand for chips that power mobile devices. In an industry where commoditized computers are driving PC margins lower and lower, Intel's ability to maintain a stellar moat is commendable. And it should continue to be lucrative in 2013.

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