5 Tech Stocks With Great Long-Term Growth Prospects

There's never really a dull moment in the tech sector as innovation keeps something or other brewing. Making this sector even more exciting are the mega trends such as mobile, cloud computing, cyber security and Big Data analytics, with extensive applications that are more of a necessity for consumers today.

Take, for instance, cloud computing. According to Centaur Partners, Software-as-a-Service (SaaS) and cloud-based business applications are likely to grow from $13.5 billion in 2013 to $32.8 billion in 2016, reflecting a compounded annual growth rate (CAGR) of 19.5%. Moreover, Computerworld forecasts that 42% of IT decision makers are planning to increase spending on cloud computing in 2015.

A recent IDC forecast claims that another major trend Big Data technology and services market will grow at a 26.4% CAGR to $41.5 billion through 2018, or about six times the growth rate of the overall IT market.

Tech Bubble? Nah!

Job growth is humming — jobless claims fell to its lowest since 1973 and innovation is all around. The excitement around this sector — thanks to the surprisingly stronger-than-expected results from three tech titans — Alphabet (GOOGL - Analyst Report), Amazon (AMZN - Analyst Report) and Microsoft (MSFT - Analyst Report) last week — might remind you of the period before the tech bubble. But we do not believe it will burst this time.

Why?

This time the companies have been around for a longer time and recorded more profits than they did back then. Investors and analysts seemed to have learnt their lessons and are not blindly investing in any tech company.

Riding the Mega Trends: 5 Picks

For most parts, we believe that investors with an eye for the long-term can bank on these mega trends. But the question is which tech stocks should you be banking on?

With the help of our new style score system, we have identified five tech stocks with excellent growth potential which will make your portfolio shine. These stocks have a favorable Zacks Rank as well.

1 2 3
View single page >> |

Disclosure: Zacks.com contains statements and statistics that have ...

more
How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.