5 Better Tech Picks If You Don't Like Facebook Now

Solid Sector Outlook

Despite the slide, the outlook for the sector is promising. This is especially true as the tech sector appears fully emerged from the burst of the dot-com bubble. The emergence of cutting-edge technology such as cloud computing, big data, Internet of Things, wearables, VR headsets, drones, virtual reality, and artificial intelligence as well as strong corporate earnings are acting as the key catalysts.

Additionally, the twin tailwinds of Trump’s tax reform plan and a rising interest rate scenario are pushing the stocks higher. Adding to the strength is a pickup in the economy and better job prospects that are giving a solid boost to economically sensitive growth sectors like technology, which typically perform well in a maturing economic cycle. With the global economy gathering momentum, technology companies are likely to outperform and less susceptible to interest rates or deregulation.

Top Picks

Given this, we have highlighted five stocks that are unfazed by the latest tech rout and poised to outperform in the weeks ahead:

Qualys Inc. (QLYS - Free Report) is a provider of cloud security and compliance solutions that enable organizations to identify security risks to their information technology infrastructures help protect their IT systems and applications from cyberattacks. The stock gained 0.5% on the day and has an estimated earnings growth rate of 6.72% for this year. It has a Zacks Rank #1 (Strong Buy) and a Momentum Score of B. 

VMware Inc. (VMW - Free Report) provides virtualization and cloud infrastructure solutions from the desktop to the data center in the United States and internationally. It has an estimated earnings growth of 14.64% for this fiscal year (ending Jan 2019) and was up 0.9% amid the tech sector turmoil. It has a Zacks Rank #1 and a Growth Score of B.

DXC Technology Company (DXC - Free Report) provides information technology services and solutions primarily in North America, Europe, Asia and Australia. Shares of DXC rose 1.2% on the day as the company is expected to see massive earnings growth of 153.55% for the fiscal year (ending March 2018). DXC Technology has a Zacks Rank #2 and a VGM Score of A.

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