14 Best Tech Stocks That Aren't on Your Radar
Tech stocks have spent the past few years really separating themselves from the market pack. As technology has become more ingrained into every aspect of life - work, play and everything in between - the companies developing and providing those technologies have delivered explosive growth.
The Technology Select Sector SPDR Fund (XLK) has delivered a 139% total return (price performance plus dividends) over the past five years, well more than double the S&P 500's 57% return. The five largest companies trading on U.S. markets are either tech stocks or, as is the case with several of the companies we'll highlight below, technology-intensive companies in other sectors. Think Amazon.com (AMZN), a consumer discretionary company, or Facebook (FB), which is technically a communications stock.
Wall Street remains aggressively bullish on tech and tech-like stocks. According to data from TipRanks, which tracks the industry's leading investment analysts, the pros are still very optimistic about the sector. Of the 573 tech stocks TipRanks includes in the sector, 129 (23%) had "Strong Buy" consensus ratings, with another 303 (51%) earning "Moderate Buy" ratings.
Some of the analyst community's top tech stocks are well-worn names such as Microsoft (MSFT) and Apple (AAPL). But many more tend to get second billing despite having equally exciting outlooks. Here, we'll look at 14 of the best tech stocks and other technology-adjacent companies that you might not hear as much about.
Fiserv
Market value: $71.1 billion
Consensus rating: Strong Buy
As e-commerce has become increasingly prevalent in merchant transactions, Fiserv (FISV, $106.19) has become a global giant in online payment processing, which is routed through its cloud-based, point-of-sale processing platform Clover. Fiserv's clients include leading banks, credit unions and merchants. The company significantly expanded its global footprint last year by purchasing First Data, a worldwide leader in payment processing.
Canaccord Genuity analysts recently pulled back their price target on FISV a bit, to $135 per share, but that still implies 27% upside from current prices. They also maintained a Buy rating, citing "accelerating cost synergies to deliver (double-digit) earnings growth this year."
So far, so good. Fiserv reported adjusted earnings per share (EPS) growth of 16% during the March quarter. The company also raised its outlook for post-acquisition revenue and cost synergies.
Also during the quarter, Fiserv introduced a PIN-based mobile application that makes smartphones and tablets point-of-sale
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