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The Best Technology Stocks Are Not Necessarily The Biggest


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Where To Look To Find The Best Technology Stocks

Best Technology Stocks

The third quarter has been a watershed quarter for negative earnings announcements by major technology companies, which provides a good opportunity to examine the best technology stocks coming out of the most recent earnings season. With major household name technology stocks, such as Amazon (NASDAQ: AMZN), Google (NASDAQ: GOOG), IBM (NYSE: IBM), and Twitter (NASDAQ: TWTR) reporting disappointing results and enduring sell-offs as a result, investors that want to buy the best performing technology stocks need to look at technology stocks that are not so well know.

There are a great number of not so well known technology stocks that have reported excellent third quarter and outlooks for the coming years, which have rewarded shareholders with higher stock prices and bright prospects for future gains. The key is to find technology companies that have fast revenue and earnings growth rates, and prospects to maintain their high growth rates well into the future. Many of the name brand large technology stocks once fit this high-growth description, but have now matured and have experienced slow-downs in their growth rates, causing their stocks to be punished by stock market participants.   It is time to look beyond the well-known technology stocks to not so well known up and coming technology stocks.

Some of The Best Technology Stocks To Invest In

Technology StocksWhat has become evident as of late 2014 is that smaller technology companies are the place to look when searching for the best technology stocks to invest in, if you are looking to capture growth and share price appreciation in the short to medium-term. Perhaps the long-term prospects of the technology behemoths, such as Amazon and Facebook, still make them attractive buys, but it is clear that many of these huge technology companies have reached a slower more mature growth stage that changes the nature of their outlooks.

Small and mid cap technology companies that have fast revenue and earnings growth rates tend to have businesses that fill a niche in the technology world that is in high demand. It is these smaller technology companies that are in the small to mid cap valuation range that offer the best prospects for near-term growth in revenue and earnings, and ultimately the price of the company’s stocks. It is a lot easier for a small to mid cap technology company to book high rates of growth in revenue and earnings than a large cap technology company that is worth hundreds of billions of dollars.
NetSuite
The following are some of the small and mid cap technology companies that analysts are focusing on as potential winners, as they have recently booked impressive revenue growth rates, and in some cases earnings growth rates. These companies have good prospects to continue growing over the next year at rates fast enough that they should see an appreciation in their share prices, which makes them some of the best technology stocks to invest in.

  • Qlik Technologies (NASDAQ: QLIK) provides business intelligence solutions that enable customers to assess their operations to make business decisions that help them realize their full potential.
  • Equinix (NASDAQ:   EQIX) provides networking services to connect companies directly to their customers and partners in secure networked data centers over Equinix’s proprietary networking platform.
  • Ebix (NASDAQ:   EBIX) provides software and e-commerce solutions focused on the insurance industry. The company operates data exchanges, which connect various entities within the insurance industry to each other, so they can discover prices and transact business.
  • Aruba Networks (NASDAQ: ARUN) provides Wi-Fi access points that deliver secure Wi-Fi access in various locations. The company also provides mobile access switches and cloud-based management solutions for managing computer networks.
  • Riverbed Technology (NASDAQ: RVBD) provides application infrastructure solutions that allow companies to run their common computer applications in the cloud using the Riverbed Application Performance Platform. They also provide wide area network (WAN) optimization and cloud storage products.
  • Cognizant Technology Solutions (NASDAQ: CTSH) provides information technology consulting and business process services from application design and development to systems integration to enterprise data management.
  • NetSuite (NYSE:   N) is in the business of selling cloud-based finance and commerce applications that allow their customers to track their finances, conduct electronic commerce, and facilitate customer relationship management (CRM) across a number of different countries with various tax laws and currencies.
  • Infinera (NASDAQ:   INFN) is a fiber-optic equipment maker that is setting the technology standard in the fiber-optic equipment industry, taking away sales from giant rivals. Specifically, the company is involved in designing and selling optical transport networking (OTN) equipment, software, and services to companies involved in Internet networking and delivery services.
  • Skyworks Solutions (NASDAQ: SWKS) has been thrust to the forefront of the technology industry, due to its involvement in the manufacture of cellular radios that Apple (NASDAQ: AAPL) uses in the iPhone 6 product line. Apple is increasingly turning to Skyworks for chips in their iPhones, boosting sales.
  • Broadcom (NASDAQ: BRCM) is another company benefiting from the success of the iPhone 6, as the company’s Wi-fi and Bluetooth chips are used in the new iPhone model that has been a big hit with consumers.
  • Nokia (NYSE: NOK) is benefitting from the ongoing digital cellular network build outs by major wireless networking companies, as they expand their 4G mobile networks to broaden their reach, improve network speeds, and ultimately attract more customers. Nokia is once again in growth mode, with increasing revenues being reported by the company for the first time in years.

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