5 Tech Stocks That Doubled In 2016 And Still Have Potential

After a highly volatile first half, the stock market is poised to end 2016 on a solid note. A rebounding U.S. economy as evident from the recently released improved economic data for GDP, and a favorable Consumer Confidence Index, unemployment rate and factory activity data have all contributed to the recovery.

2016 Market Performance

In the year-to-date (YTD) period, Dow Jones Industrial Average (DJI), NASDAQ Composite (IXIC) and S&P 500 (GSPC) gained 13.8%, 8.6% and 10.1%, respectively.

The technology sector continued to perform well with Technology Select Sector SPDR ETF (XLK - Free Report) registering a year-to-date return of 13.7%.

Launched in Dec 1998, XLK is a passively managed fund designed to deliver the returns of the U.S. technology stocks. The fund, before expenses, is expected to remain on par with the returns and characteristics of the S&P Technology Select Sector Index.

Tech Stocks Poised for Further Growth

The technology sector is likely to grow further in 2017, as evident from the recent forecast provided by Gartner Inc. (IT - Free Report) on worldwide IT spending. The latest report from the independent research firm projects global IT spending to reach $3.5 trillion next year, representing an increase of 2.9% from $3.4 trillion anticipated in 2016.

The technology space continues to be investors’ favorite due to its dynamic nature. It is expected to grow faster than ever before as evident from Gartner’s latest forecasts as well as improving U.S. economic data. Therefore, if you invest right, you can reap the benefits over time.

Right now, the technology sector has several promising stocks to choose from. Here we have picked five tech stocks that have more than doubled so far this year and have the potential to keep the momentum going in the next year. They also have a favorable Zacks Rank #1 (Strong Buy) or #2 (Buy), a VGM Style Score of “A” or “B”, and high earnings growth rate projections than the industry average.

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